Fred Alger Management LLC Sells 2,103,594 Shares of Roblox Corporation $RBLX

Fred Alger Management LLC lessened its holdings in Roblox Corporation (NYSE:RBLX) by 87.6% in the fourth quarter, Holdings Channel reports. The firm owned 299,114 shares of the company’s stock after selling 2,103,594 shares during the period. Fred Alger Management LLC’s holdings in Roblox were worth $24,237,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors have also recently bought and sold shares of the business. Baird Financial Group Inc. grew its stake in Roblox by 1.4% in the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock valued at $767,000 after purchasing an additional 102 shares during the period. Sunbelt Securities Inc. grew its stake in 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. grew its stake in Roblox by 2.8% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company’s stock valued at $560,000 after purchasing an additional 110 shares during the period. Westpac Banking Corp grew its stake in Roblox by 0.6% in the 3rd quarter. Westpac Banking Corp now owns 20,043 shares of the company’s stock valued at $2,776,000 after purchasing an additional 115 shares during the period. Finally, NewEdge Advisors LLC grew its stake in Roblox by 1.3% in the 2nd quarter. NewEdge Advisors LLC now owns 10,374 shares of the company’s stock valued at $1,091,000 after purchasing an additional 138 shares during the period. Institutional investors own 94.46% of the company’s stock.

More Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox announced the global rollout of Roblox Kids and Roblox Select, new age-based accounts for users under 16 designed to strengthen child safety and adapt protections as children grow. Roblox Kids and Roblox Select Accounts Now Available Worldwide
• Positive Sentiment: Traders bought an unusually large number of Roblox call options, signaling speculative interest that can support the stock in the short term. Unusual options trading activity
• Positive Sentiment: Coverage around Roblox’s safety upgrades and global platform durability has highlighted potential improvements to the company’s long-term compliance posture and international access, including recent reporting that Russia lifted its ban after Roblox pledged better protections for young users. Roblox Sprints on Kids Products Rollout
• Neutral Sentiment: Analysts also pointed to stronger weekend engagement tied to a popular game, which may help offset some concerns about user growth, but this appears more like a usage trend than a major new catalyst. Roblox sees weekend engagement surge on Grow a Garden 2 — TD Cowen
• Negative Sentiment: Roblox faces multiple securities class action notices and law-firm reminders ahead of the August 7 lead-plaintiff deadline, keeping investor focus on alleged disclosure issues around the impact of age-verification changes on DAUs and growth expectations. RBLX Court Deadline: Roblox Corporation Investors are Notified of the Important August 7 Deadline in the Pending Securities Fraud Class Action Lawsuit

Analyst Ratings Changes

RBLX has been the subject of a number of recent analyst reports. Jefferies Financial Group downgraded Roblox from a “hold” rating to a “hold” rating in a research note on Friday, May 1st. Morgan Stanley restated an “overweight” rating and issued a $62.00 price objective on shares of Roblox in a research note on Friday, May 1st. DA Davidson reduced their price objective on Roblox from $47.50 to $45.00 and set a “neutral” rating for the company in a research note on Friday, May 22nd. Wedbush downgraded Roblox from a “hold” rating to a “neutral” rating in a research note on Friday, May 1st. Finally, UBS Group dropped their price target on Roblox from $74.00 to $49.00 and set a “neutral” rating on the stock in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $87.07.

Roblox Stock Up 8.4%

Shares of NYSE RBLX opened at $49.48 on Wednesday. Roblox Corporation has a one year low of $40.15 and a one year high of $150.59. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89. The business’s fifty day moving average price is $49.56 and its 200-day moving average price is $64.76. The stock has a market capitalization of $33.23 billion, a PE ratio of -31.32 and a beta of 1.44.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.06. Roblox had a negative return on equity of 277.69% and a negative net margin of 20.69%.The firm had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.74 billion. During the same quarter in the prior year, the firm earned ($0.32) EPS. The business’s revenue for the quarter was up 43.4% compared to the same quarter last year. On average, equities research analysts anticipate that Roblox Corporation will post -1.4 EPS for the current year.

Roblox announced that its Board of Directors has initiated a share repurchase 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 often a sign that the company’s board believes its stock is undervalued.

Insider Activity

In other news, CEO David Baszucki sold 50,628 shares of the company’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total transaction of $2,292,435.84. Following the transaction, the chief executive officer owned 852,214 shares of the company’s stock, valued at $38,588,249.92. This represents a 5.61% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Matthew D. Kaufman sold 14,356 shares of the company’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $45.27, for a total value of $649,896.12. Following the transaction, the insider directly owned 349,964 shares in the company, valued at $15,842,870.28. This represents a 3.94% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 189,449 shares of company stock worth $9,179,410. 10.05% of the stock is owned by company insiders.

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.