Roblox (NYSE:RBLX) Shares Down 1.8% on Insider Selling

Roblox Co. (NYSE:RBLX)’s share price dropped 1.8% during mid-day trading on Monday following insider selling activity. The stock traded as low as $39.72 and last traded at $39.87. Approximately 1,661,649 shares traded hands during mid-day trading, a decline of 77% from the average daily volume of 7,326,401 shares. The stock had previously closed at $40.59.

Specifically, insider Mark Reinstra sold 17,000 shares of the firm’s stock in a transaction dated Monday, August 19th. The stock was sold at an average price of $40.47, for a total transaction of $687,990.00. Following the sale, the insider now directly owns 342,656 shares in the company, valued at approximately $13,867,288.32. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Mark Reinstra sold 12,000 shares of the firm’s stock in a transaction dated Thursday, August 15th. The shares were sold at an average price of $40.00, for a total value of $480,000.00. Following the sale, the insider now owns 342,656 shares in the company, valued at $13,706,240. The disclosure for this sale can be found here. In other news, CFO Michael Guthrie sold 30,000 shares of the firm’s stock in a transaction dated Wednesday, August 14th. The stock was sold at an average price of $38.82, for a total transaction of $1,164,600.00. Following the sale, the chief financial officer now directly owns 374,633 shares in the company, valued at approximately $14,543,253.06. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on RBLX. Morgan Stanley dropped their target price on Roblox from $42.00 to $35.00 and set an “equal weight” rating on the stock in a research report on Friday, May 10th. Wedbush reiterated an “outperform” rating and issued a $46.00 price objective on shares of Roblox in a report on Monday, July 29th. Barclays lifted their price objective on Roblox from $35.00 to $40.00 and gave the stock an “equal weight” rating in a report on Friday, August 2nd. Moffett Nathanson upgraded Roblox from a “sell” rating to a “neutral” rating and lowered their price objective for the stock from $31.00 to $26.00 in a report on Friday, May 10th. Finally, Stifel Nicolaus reiterated a “buy” rating and issued a $53.00 price objective on shares of Roblox in a report on Monday, April 22nd. Eight analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $44.15.

Roblox Trading Up 0.7 %

The stock has a market cap of $24.16 billion, a PE ratio of -21.97 and a beta of 1.60. The company has a debt-to-equity ratio of 9.04, a quick ratio of 1.03 and a current ratio of 1.03. The company’s 50-day moving average price is $38.38 and its 200 day moving average price is $37.93.

Roblox (NYSE:RBLX) last released its quarterly earnings results on Thursday, August 1st. The company reported ($0.32) EPS for the quarter, beating the consensus estimate of ($0.39) by $0.07. The firm had revenue of $893.50 million for the quarter, compared to analyst estimates of $897.88 million. Roblox had a negative net margin of 34.12% and a negative return on equity of 1,187.59%. The business’s revenue for the quarter was up 31.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.46) EPS. On average, sell-side analysts forecast that Roblox Co. will post -1.59 EPS for the current fiscal year.

Institutional Trading of Roblox

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of Roblox by 10.4% during the first quarter. Vanguard Group Inc. now owns 51,082,302 shares of the company’s stock worth $1,950,322,000 after acquiring an additional 4,818,022 shares during the period. Baillie Gifford & Co. increased its position in shares of Roblox by 1.9% during the second quarter. Baillie Gifford & Co. now owns 29,142,565 shares of the company’s stock worth $1,084,395,000 after acquiring an additional 535,414 shares during the period. ARK Investment Management LLC increased its position in shares of Roblox by 12.9% during the second quarter. ARK Investment Management LLC now owns 13,338,829 shares of the company’s stock worth $496,338,000 after acquiring an additional 1,519,591 shares during the period. Ieq Capital LLC increased its position in shares of Roblox by 27.6% during the first quarter. Ieq Capital LLC now owns 12,409,924 shares of the company’s stock worth $473,811,000 after acquiring an additional 2,684,713 shares during the period. Finally, Dragoneer Investment Group LLC increased its position in shares of Roblox by 26.9% during the second quarter. Dragoneer Investment Group LLC now owns 11,745,203 shares of the company’s stock worth $437,039,000 after acquiring an additional 2,488,044 shares during the period. Hedge funds and other institutional investors own 91.08% of the company’s stock.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.