Roblox (NYSE:RBLX) Trading 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 changed 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 Roblox stock in a transaction that occurred on Monday, August 19th. The stock was sold at an average price of $40.47, for a total transaction of $687,990.00. Following the completion of the transaction, the insider now directly owns 342,656 shares in the company, valued at $13,867,288.32. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Mark Reinstra sold 12,000 shares of the company’s stock in a transaction dated Thursday, August 15th. The stock was sold at an average price of $40.00, for a total transaction of $480,000.00. Following the completion of the transaction, the insider now 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 the company’s stock in a transaction that occurred on 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 completion of the transaction, the chief financial officer now directly owns 374,633 shares of the company’s stock, valued at approximately $14,543,253.06. The sale was disclosed in a filing with the SEC, which is available at this link.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the company. Wedbush reissued an “outperform” rating and set a $46.00 target price on shares of Roblox in a report on Monday, July 29th. Roth Capital downgraded Roblox from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 14th. BMO Capital Markets reaffirmed an “outperform” rating and set a $56.00 target price on shares of Roblox in a research note on Tuesday, July 30th. The Goldman Sachs Group increased their target price on shares of Roblox from $38.00 to $45.00 and gave the company a “neutral” rating in a research report on Friday, August 2nd. Finally, Wolfe Research initiated coverage on shares of Roblox in a research report on Tuesday, July 16th. They set a “peer perform” rating on the stock. Eight analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, Roblox has a consensus rating of “Moderate Buy” and an average price target of $44.15.

Roblox Trading Down 0.8 %

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 business has a 50-day simple moving average of $38.48 and a 200-day simple moving average of $37.93. The company has a market cap of $23.97 billion, a PE ratio of -21.80 and a beta of 1.60.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, August 1st. The company reported ($0.32) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.39) by $0.07. The business had revenue of $893.50 million for the quarter, compared to analysts’ expectations 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 quarterly revenue was up 31.2% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.46) earnings per share. On average, analysts predict that Roblox Co. will post -1.59 EPS for the current fiscal year.

Hedge Funds Weigh In On Roblox

Several institutional investors have recently modified their holdings of RBLX. DekaBank Deutsche Girozentrale grew its position in shares of Roblox by 2.4% during the first quarter. DekaBank Deutsche Girozentrale now owns 60,520 shares of the company’s stock worth $2,318,000 after buying an additional 1,419 shares in the last quarter. International Assets Investment Management LLC increased its position in shares of Roblox by 3,188.8% in the 4th quarter. International Assets Investment Management LLC now owns 84,719 shares of the company’s stock valued at $3,873,000 after purchasing an additional 82,143 shares during the last quarter. Kodai Capital Management LP acquired a new stake in shares of Roblox in the 4th quarter valued at $6,805,000. SteelPeak Wealth LLC lifted its position in shares of Roblox by 41.4% during the 1st quarter. SteelPeak Wealth LLC now owns 11,091 shares of the company’s stock worth $423,000 after purchasing an additional 3,247 shares during the last quarter. Finally, Sei Investments Co. grew its stake in shares of Roblox by 18.3% during the first quarter. Sei Investments Co. now owns 288,112 shares of the company’s stock worth $11,000,000 after purchasing an additional 44,557 shares in the last quarter. Institutional investors and hedge funds 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.