Key Points
- Roblox insider Mark Reinstra sold 6,250 shares at an average price of $40, generating $250,000 under a pre-arranged Rule 10b5-1 trading plan. He retained 415,998 shares after the transaction.
- Roblox reported a quarterly loss of $0.26 per share, better than the expected $0.34 loss, while revenue of $1.47 billion fell short of estimates. Revenue still increased 8.3% year over year, but the company remained unprofitable.
- The stock opened at $38.52, well below its 50-day and 200-day moving averages, while analysts maintained a consensus “Hold” rating with an average price target of $60.89. Roblox has also authorized a $3 billion share-repurchase program.
Roblox Corporation (NYSE:RBLX - Get Free Report) insider Mark Reinstra sold 6,250 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $40.00, for a total value of $250,000.00. Following the completion of the sale, the insider directly owned 415,998 shares in the company, valued at approximately $16,639,920. The trade was a 1.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Mark Reinstra also recently made the following trade(s):
- On Monday, July 6th, Mark Reinstra sold 4,512 shares of Roblox stock. The shares were sold at an average price of $57.34, for a total value of $258,718.08.
- On Monday, June 8th, Mark Reinstra sold 5,978 shares of Roblox stock. The stock was sold at an average price of $41.71, for a total value of $249,342.38.
Roblox Price Performance
Roblox stock opened at $38.52 on Friday. The firm has a fifty day moving average of $47.21 and a 200-day moving average of $52.77. The firm has a market capitalization of $25.81 billion, a P/E ratio of -26.94 and a beta of 1.46. Roblox Corporation has a 52-week low of $33.88 and a 52-week high of $142.00. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82.
Roblox (NYSE:RBLX - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.34) by $0.08. The firm had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.60 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The firm's quarterly revenue was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.41) EPS. As a group, analysts predict that Roblox Corporation will post -1.39 EPS for the current year.
Roblox announced that its Board of Directors has authorized a share repurchase program on Tuesday, May 19th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 9.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its shares are undervalued.
Institutional Investors Weigh In On Roblox
A number of institutional investors have recently bought and sold shares of RBLX. Hanson & Doremus Investment Management bought a new stake in shares of Roblox in the 1st quarter valued at approximately $25,000. Fideuram Asset Management Ireland dac acquired a new stake in shares of Roblox in the fourth quarter valued at $27,000. Basecamp Wealth Advisors LLC raised its stake in shares of Roblox by 98.8% in the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company's stock worth $29,000 after acquiring an additional 252 shares during the last quarter. GW&K Investment Management LLC raised its position in Roblox by 76.3% in the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company's stock worth $30,000 after purchasing an additional 161 shares during the last quarter. Finally, Root Financial Partners LLC lifted its stake in shares of Roblox by 100.7% during the first quarter. Root Financial Partners LLC now owns 564 shares of the company's stock valued at $32,000 after acquiring an additional 283 shares during the period. Institutional investors and hedge funds own 94.46% of the company's stock.
Analyst Ratings Changes
A number of brokerages have recently weighed in on RBLX. Jefferies Financial Group lowered shares of Roblox from a "hold" rating to a "hold" rating in a research note on Friday, May 1st. Morgan Stanley reduced their price objective on shares of Roblox from $62.00 to $55.00 and set an "overweight" rating for the company in a research note on Friday, July 31st. HSBC downgraded Roblox from a "buy" rating to a "hold" rating and set a $46.00 price target on the stock. in a report on Friday, May 1st. Wolfe Research downgraded shares of Roblox from an "outperform" rating to a "hold" rating in a research report on Friday, July 31st. Finally, Seaport Research Partners lowered Roblox to a "neutral" rating in a research report on Monday, June 29th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fifteen have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $60.89.
Read Our Latest Stock Report on RBLX
About Roblox
(
Get Free Report)
Roblox Corporation operates Roblox, a user-generated online platform that enables people to create, share and monetize immersive 3D experiences and games. The core offering centers on Roblox Studio, a development environment that allows independent creators and studios to design interactive worlds using the company's building tools and scripting language. Content on the platform spans games, virtual hangouts, branded experiences and live events, all delivered through a persistent social environment.
Roblox's business model is built around its virtual economy and creator ecosystem.
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