Roblox (NYSE:RBLX – Get Free Report) announced that its Board of Directors has authorized a stock repurchase program on Tuesday, May 19th, RTT News reports. The company plans to buyback $3.00 billion in shares. This buyback authorization allows the company to buy up to 9.5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its shares are undervalued.
Wall Street Analyst Weigh In
Several brokerages recently issued reports on RBLX. Wedbush cut Roblox from a “hold” rating to a “neutral” rating in a research report on Friday, May 1st. BTIG Research lowered shares of Roblox from a “buy” rating to a “neutral” rating in a research report on Friday, May 1st. JPMorgan Chase & Co. lowered their price objective on shares of Roblox from $100.00 to $75.00 and set a “neutral” rating on the stock in a research report on Friday, February 6th. Bank of America lowered shares of Roblox from a “buy” rating to a “neutral” rating and set a $48.00 price objective on the stock. in a research report on Friday, May 1st. Finally, Morgan Stanley reiterated an “overweight” rating and issued a $62.00 price objective on shares of Roblox in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $87.17.
View Our Latest Stock Report on RBLX
Roblox Price Performance
Roblox (NYSE:RBLX – Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, topping the consensus estimate of ($0.41) by $0.06. The company had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.74 billion. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The business’s revenue was up 43.4% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.32) EPS. On average, sell-side analysts expect that Roblox will post -1.4 earnings per share for the current fiscal year.
Insider Activity at Roblox
In other Roblox news, Director Gregory Baszucki sold 16,666 shares of the business’s stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $44.97, for a total transaction of $749,470.02. Following the sale, the director directly owned 1,294,501 shares in the company, valued at approximately $58,213,709.97. The trade was a 1.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Matthew D. Kaufman sold 13,325 shares of the business’s stock in a transaction on Monday, April 13th. The stock was sold at an average price of $57.94, for a total transaction of $772,050.50. Following the sale, the insider owned 364,320 shares in the company, valued at $21,108,700.80. The trade was a 3.53% decrease in their ownership of the stock. 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. Insiders have sold a total of 76,144 shares of company stock valued at $4,235,769 over the last 90 days. Company insiders own 10.05% of the company’s stock.
About Roblox
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.
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