Roblox (NYSE:RBLX) Insider Mark Reinstra Sells 4,512 Shares

Roblox Corporation (NYSE:RBLX) insider Mark Reinstra sold 4,512 shares of the company’s stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $57.34, for a total value of $258,718.08. Following the sale, the insider directly owned 422,248 shares of the company’s stock, valued at $24,211,700.32. The trade was a 1.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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, June 8th, Mark Reinstra sold 5,978 shares of Roblox stock. The shares were sold at an average price of $41.71, for a total transaction of $249,342.38.
• On Thursday, May 21st, Mark Reinstra sold 5,460 shares of Roblox stock. The stock was sold at an average price of $46.40, for a total transaction of $253,344.00.
• On Wednesday, May 20th, Mark Reinstra sold 17,275 shares of Roblox stock. The stock was sold at an average price of $45.28, for a total transaction of $782,212.00.
• On Monday, April 13th, Mark Reinstra sold 18,653 shares of Roblox stock. The shares were sold at an average price of $57.94, for a total transaction of $1,080,754.82.

Roblox Stock Performance

Shares of RBLX opened at $56.73 on Wednesday. The company has a market capitalization of $38.10 billion, a PE ratio of -35.91 and a beta of 1.41. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89. Roblox Corporation has a one year low of $40.15 and a one year high of $150.59. The company’s fifty day moving average price is $47.69 and its 200 day moving average price is $60.43.

Roblox (NYSE:RBLX) last released its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.06. The company had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.74 billion. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The business’s quarterly revenue was up 43.4% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.32) earnings per share. As a group, analysts expect that Roblox Corporation will post -1.39 earnings per share for the current year.

Roblox declared that its Board of Directors has initiated a share buyback program on Tuesday, May 19th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the company to buy up to 9.5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its stock is undervalued.

Roblox News Summary

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: No clearly positive company-specific developments were reported in the latest batch of articles.
• Neutral Sentiment: Several law firms, including Faruqi & Faruqi, Bernstein Liebhard, Schall, DJS Law Group, Rosen, Robbins LLP, and Robbins Geller, issued procedural notices reminding investors of the pending securities class action and deadline for lead-plaintiff applications. Article Title
• Neutral Sentiment: An insider filing showed Roblox director Mark Reinstra sold 4,512 shares under a pre-arranged 10b5-1 trading plan, a transaction that may draw investor attention but was not presented as unusual. Article Title
• Negative Sentiment: Hagens Berman said the lawsuit centers on Roblox’s April 30 Q1 report, which allegedly revealed a sharp sequential decline in daily active users amid the company’s age-verification rollout, fueling concerns about growth and contributing to a major market-cap loss. Article Title

Wall Street Analyst Weigh In

Several research firms have recently issued reports on RBLX. Weiss Ratings restated a “sell (e+)” rating on shares of Roblox in a report on Wednesday, June 24th. BMO Capital Markets upgraded Roblox from an “outperform” rating to an “outperform” rating in a research note on Monday, June 29th. Morgan Stanley reaffirmed an “overweight” rating and issued a $62.00 price target on shares of Roblox in a report on Friday, May 1st. Arete Research set a $95.00 price objective on Roblox and gave the stock a “buy” rating in a research report on Monday, June 29th. Finally, HSBC lowered Roblox from a “buy” rating to a “hold” rating and set a $46.00 price objective on the stock. in a report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $85.48.

Institutional Trading of Roblox

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RBLX. Baird Financial Group Inc. lifted its stake in Roblox by 1.4% during the second quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock worth $767,000 after purchasing an additional 102 shares during the period. Sunbelt Securities Inc. grew its stake in shares of Roblox by 58.7% in the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock valued at $39,000 after purchasing an additional 105 shares during the period. Brown Brothers Harriman & Co. raised its holdings in shares of Roblox by 2.8% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company’s stock worth $560,000 after buying an additional 110 shares in the last quarter. NewEdge Advisors LLC raised its holdings in shares of Roblox by 1.3% in the 2nd quarter. NewEdge Advisors LLC now owns 10,374 shares of the company’s stock worth $1,091,000 after buying an additional 138 shares in the last quarter. Finally, L2 Asset Management LLC lifted its position in shares of Roblox by 5.9% during the 3rd quarter. L2 Asset Management LLC now owns 2,783 shares of the company’s stock worth $386,000 after buying an additional 154 shares during the period. Institutional investors own 94.46% of the company’s stock.

About Roblox

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.