Roblox (NYSE:RBLX) Insider Mark Reinstra Sells 17,275 Shares

Roblox Corporation (NYSE:RBLX) insider Mark Reinstra sold 17,275 shares of the company’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total value of $782,212.00. Following the completion of the transaction, the insider owned 438,198 shares of the company’s stock, valued at $19,841,605.44. The trade was a 3.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Mark Reinstra also recently made the following trade(s):

• On Thursday, May 21st, Mark Reinstra sold 5,460 shares of Roblox stock. The stock was sold at an average price of $46.40, for a total value of $253,344.00.
• On Monday, April 13th, Mark Reinstra sold 18,653 shares of Roblox stock. The stock was sold at an average price of $57.94, for a total value of $1,080,754.82.

Roblox Trading Up 4.5%

RBLX stock opened at $48.23 on Friday. Roblox Corporation has a 1-year low of $40.15 and a 1-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 company has a market capitalization of $32.39 billion, a price-to-earnings ratio of -30.53 and a beta of 1.50. The business has a 50 day simple moving average of $53.56 and a two-hundred day simple moving average of $71.53.

Roblox (NYSE:RBLX) last posted its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share for the quarter, topping the consensus estimate 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 business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.74 billion. During the same period in the prior year, the company posted ($0.32) EPS. The firm’s revenue for the quarter was up 43.4% compared to the same quarter last year. Research analysts anticipate that Roblox Corporation will post -1.4 EPS for the current fiscal year.

Roblox declared that its board has authorized a stock buyback program on Tuesday, May 19th that allows the company to repurchase $3.00 billion in shares. This repurchase authorization allows the company to repurchase up to 9.5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Roblox

A number of hedge funds and other institutional investors have recently made changes to their positions in RBLX. Norges Bank bought a new position in shares of Roblox during the 4th quarter worth $435,424,000. Vanguard Group Inc. boosted its position in Roblox by 5.6% during the third quarter. Vanguard Group Inc. now owns 62,437,998 shares of the company’s stock valued at $8,648,911,000 after purchasing an additional 3,284,073 shares in the last quarter. SRS Investment Management LLC bought a new stake in Roblox during the fourth quarter valued at about $238,065,000. Amundi boosted its position in Roblox by 83.7% during the first quarter. Amundi now owns 5,774,151 shares of the company’s stock valued at $326,586,000 after purchasing an additional 2,631,074 shares in the last quarter. Finally, Capital International Investors boosted its position in Roblox by 7.3% during the fourth quarter. Capital International Investors now owns 31,953,301 shares of the company’s stock valued at $2,589,282,000 after purchasing an additional 2,184,439 shares in the last quarter. Institutional investors own 94.46% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on RBLX shares. Morgan Stanley reiterated an “overweight” rating and set a $62.00 target price on shares of Roblox in a research report on Friday, May 1st. BMO Capital Markets reiterated an “outperform” rating on shares of Roblox in a research report on Friday, February 6th. Roth Mkm set a $65.00 target price on Roblox in a research report on Tuesday, May 5th. Wall Street Zen upgraded Roblox from a “sell” rating to a “hold” rating in a research report on Saturday, March 28th. Finally, JPMorgan Chase & Co. lowered their target price on Roblox from $100.00 to $75.00 and set a “neutral” rating for the company in a research report on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Roblox has an average rating of “Hold” and an average price target of $87.07.

More Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: One recent bullish view argues Roblox is evolving into an AI-enabled entertainment platform, with creator tools helping boost content production and user engagement, which could support long-term bookings and monetization. Roblox: The Scarce Entertainment Asset In An AI-Abundant World
• Neutral Sentiment: Analysts and commentators also noted that Roblox remains a debated story, with some saying the investment case depends on assumptions that may be hard to prove near term. Roblox: Investment Case Relies On Unreliable Assumptions
• Negative Sentiment: CEO David Baszucki sold 50,628 shares, CFO Naveen K. Chopra sold 16,863 shares, and several other insiders also sold shares in filings dated May 20–21. While the company said these were largely to cover tax withholding from vesting awards, the cluster of sales can still weigh on sentiment.
• Negative Sentiment: Additional commentary flagged near-term growth headwinds from age verification and moderation-related changes, which have softened DAU, engagement, and bookings trends even as Roblox works on new kids’ accounts and broader 18+ monetization. Roblox: Reset Triggers Robust 18+ Cohort Monetization Opportunities

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.