Roblox (NYSE:RBLX) CAO Amy Marie Rawlings Sells 5,061 Shares of Stock

Roblox Corporation (NYSE:RBLX) CAO Amy Marie Rawlings sold 5,061 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $37.97, for a total value of $192,166.17. Following the sale, the chief accounting officer directly owned 68,745 shares in the company, valued at $2,610,247.65. This trade represents a 6.86% decrease in their ownership of the stock. 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.

Amy Marie Rawlings also recently made the following trade(s):

• On Tuesday, May 26th, Amy Marie Rawlings sold 274 shares of Roblox stock. The shares were sold at an average price of $48.00, for a total transaction of $13,152.00.

Roblox Trading Up 0.9%

Shares of RBLX opened at $38.70 on Tuesday. The company’s fifty day moving average is $46.97 and its 200 day moving average is $52.38. Roblox Corporation has a fifty-two week low of $33.88 and a fifty-two week high of $142.00. The stock has a market capitalization of $25.93 billion, a PE ratio of -27.06 and a beta of 1.46. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82.

Roblox (NYSE:RBLX) last released its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.34) by $0.08. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The company had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter in the prior year, the firm earned ($0.41) earnings per share. Roblox’s revenue was up 8.3% on a year-over-year basis. Sell-side analysts expect that Roblox Corporation will post -1.39 earnings per share for the current fiscal year.

Roblox announced that its board has authorized a share repurchase program on Tuesday, May 19th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the company to repurchase up to 9.5% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its stock is undervalued.

Hedge Funds Weigh In On Roblox

Large investors have recently made changes to their positions in the company. NewEdge Advisors LLC lifted its stake in Roblox by 2.3% in the first quarter. NewEdge Advisors LLC now owns 10,236 shares of the company’s stock worth $597,000 after purchasing an additional 231 shares during the last quarter. Sivia Capital Partners LLC grew its stake in shares of Roblox by 70.2% during the second quarter. Sivia Capital Partners LLC now owns 13,000 shares of the company’s stock valued at $1,368,000 after buying an additional 5,363 shares during the last quarter. CW Advisors LLC purchased a new stake in shares of Roblox in the second quarter worth approximately $272,000. Baird Financial Group Inc. raised its holdings in shares of Roblox by 1.4% in the second quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock worth $767,000 after buying an additional 102 shares during the period. Finally, WINTON GROUP Ltd bought a new stake in shares of Roblox during the 2nd quarter worth approximately $438,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Roblox

Here are the key news stories impacting Roblox this week:

• Neutral Sentiment: CEO David Baszucki, CFO Naveen K. Chopra, CAO Amy Marie Rawlings, and insiders Mark Reinstra, Sean Jack Buckley, and Matthew D. Kaufman collectively sold 113,583 shares worth approximately $4.31 million on August 20, at prices near $37.96–$37.97. Each filing stated that the shares were sold to cover tax withholding obligations tied to vested equity awards, limiting the negative signal typically associated with open-market insider selling. Roblox insider transaction filings
• Neutral Sentiment: Although the sales reduced each insider’s individual holdings by roughly 4% to 7%, the executives and insiders continued to retain substantial positions in Roblox. The filings therefore provide limited evidence of declining confidence in the company’s outlook. Roblox CFO transaction filing

Analysts Set New Price Targets

A number of research analysts recently commented on the stock. Moffett Nathanson reaffirmed a “neutral” rating and issued a $40.00 price target on shares of Roblox in a report on Monday, August 3rd. Arete Research set a $95.00 price objective on Roblox and gave the stock a “buy” rating in a research note on Monday, June 29th. TD Cowen decreased their price objective on Roblox from $49.00 to $40.00 and set a “hold” rating on the stock in a research report on Friday, July 31st. Deutsche Bank Aktiengesellschaft cut Roblox from a “buy” rating to a “hold” rating and dropped their target price for the stock from $56.00 to $38.00 in a report on Friday, July 31st. Finally, Seaport Research Partners downgraded Roblox to a “neutral” rating in a research report on Monday, June 29th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fifteen have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $60.89.

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.