Roblox (NYSE:RBLX) Shares Down 2.7% Following Insider Selling

Roblox Co. (NYSE:RBLX) shares dropped 2.7% during mid-day trading on Tuesday after an insider sold shares in the company. The stock traded as low as $39.74 and last traded at $39.75. 1,805,323 shares traded hands during mid-day trading, a decline of 75% from the average daily volume of 7,323,143 shares. The stock had previously closed at $40.86.

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

Analyst Upgrades and Downgrades

A number of research firms have issued reports on RBLX. BTIG Research decreased their target price on Roblox from $54.00 to $46.00 and set a “buy” rating for the company in a research note on Friday, May 10th. Macquarie increased their target price on Roblox from $46.00 to $50.00 and gave the stock an “outperform” rating in a research note on Monday, August 5th. Roth Capital downgraded shares of Roblox from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 14th. JPMorgan Chase & Co. upgraded shares of Roblox from a “neutral” rating to an “overweight” rating and upped their price target for the company from $41.00 to $48.00 in a report on Tuesday, April 23rd. Finally, Wolfe Research initiated coverage on shares of Roblox in a report on Tuesday, July 16th. They set a “peer perform” rating on the stock. Eight equities research analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $44.15.

Roblox Stock Performance

The firm has a market capitalization of $23.55 billion, a price-to-earnings ratio of -21.37 and a beta of 1.60. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 9.04. The stock’s fifty day moving average is $38.38 and its two-hundred day moving average is $37.93.

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

Institutional Trading of Roblox

A number of hedge funds have recently made changes to their positions in the business. Swedbank AB raised its stake in Roblox by 0.5% in the 2nd quarter. Swedbank AB now owns 53,297 shares of the company’s stock valued at $1,983,000 after acquiring an additional 285 shares during the period. Thrive Wealth Management LLC raised its position in shares of Roblox by 4.3% in the second quarter. Thrive Wealth Management LLC now owns 7,358 shares of the company’s stock valued at $274,000 after purchasing an additional 300 shares during the period. Mystic Asset Management Inc. lifted its stake in shares of Roblox by 4.0% during the 1st quarter. Mystic Asset Management Inc. now owns 8,550 shares of the company’s stock worth $326,000 after buying an additional 325 shares during the last quarter. Center for Financial Planning Inc. boosted its holdings in shares of Roblox by 2.3% during the 2nd quarter. Center for Financial Planning Inc. now owns 17,722 shares of the company’s stock worth $659,000 after buying an additional 400 shares during the period. Finally, AlTi Global Inc. grew its stake in Roblox by 8.1% in the 2nd quarter. AlTi Global Inc. now owns 5,917 shares of the company’s stock valued at $220,000 after buying an additional 445 shares during the last quarter. 91.08% of the stock is owned by institutional investors and hedge funds.

Roblox Company Profile

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.