Roblox (NYSE:RBLX) Trading Down 6% Following Insider Selling

Roblox Corporation (NYSE:RBLX) shares traded down 6% on Tuesday following insider selling activity. The stock traded as low as $76.21 and last traded at $76.2040. 1,327,520 shares traded hands during mid-day trading, a decline of 75% from the average session volume of 5,349,941 shares. The stock had previously closed at $81.04.

Specifically, Director Anthony P. Lee sold 59,000 shares of the business’s stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $79.96, for a total value of $4,717,640.00. Following the sale, the director owned 257,258 shares of the company’s stock, valued at approximately $20,570,349.68. The trade was a 18.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.

Analysts Set New Price Targets

A number of analysts have commented on RBLX shares. JPMorgan Chase & Co. lowered shares of Roblox from an “overweight” rating to a “neutral” rating and reduced their price objective for the company from $145.00 to $100.00 in a research note on Friday, December 12th. B. Riley assumed coverage on shares of Roblox in a research note on Tuesday, December 9th. They issued a “buy” rating and a $125.00 target price for the company. Barclays increased their target price on Roblox from $120.00 to $130.00 and gave the stock an “equal weight” rating in a report on Friday, October 31st. Jefferies Financial Group reduced their price objective on Roblox from $115.00 to $100.00 and set a “hold” rating on the stock in a research note on Thursday, December 11th. Finally, Wells Fargo & Company cut their price objective on shares of Roblox from $155.00 to $141.00 and set an “overweight” rating on the stock in a report on Friday, October 31st. Eighteen research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $133.96.

Roblox Trading Down 6.3%

The firm has a 50-day moving average of $94.88 and a two-hundred day moving average of $113.57. The firm has a market capitalization of $49.73 billion, a P/E ratio of -53.11 and a beta of 1.64. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 2.54.

Roblox (NYSE:RBLX) last announced its earnings results on Thursday, October 30th. The company reported ($0.37) EPS for the quarter, beating the consensus estimate of ($0.44) by $0.07. The business had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.64 billion. Roblox had a negative return on equity of 314.20% and a negative net margin of 21.70%.The firm’s revenue was up 70.3% on a year-over-year basis. During the same period in the prior year, the business posted ($0.37) earnings per share. On average, analysts anticipate that Roblox Corporation will post -1.49 EPS for the current year.

Hedge Funds Weigh In On Roblox

Hedge funds have recently bought and sold shares of the company. Norges Bank purchased a new position in Roblox during the second quarter worth about $350,720,000. Vanguard Group Inc. increased its position in shares of Roblox by 5.6% during the 3rd quarter. Vanguard Group Inc. now owns 62,437,998 shares of the company’s stock valued at $8,648,911,000 after purchasing an additional 3,284,073 shares during the last quarter. Federated Hermes Inc. raised its stake in shares of Roblox by 103.0% during the 2nd quarter. Federated Hermes Inc. now owns 3,245,338 shares of the company’s stock worth $341,410,000 after purchasing an additional 1,646,871 shares during the period. Massachusetts Financial Services Co. MA grew its position in Roblox by 47.0% during the second quarter. Massachusetts Financial Services Co. MA now owns 4,788,195 shares of the company’s stock valued at $503,718,000 after buying an additional 1,531,380 shares during the period. Finally, 1832 Asset Management L.P. increased its holdings in Roblox by 359.8% during the second quarter. 1832 Asset Management L.P. now owns 1,818,394 shares of the company’s stock worth $191,295,000 after buying an additional 1,422,894 shares during the last quarter. 94.46% of the stock is owned by hedge funds and other institutional investors.

Roblox Company Profile

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.