Roblox (NYSE:RBLX) Shares Gap Down Following Insider Selling

Roblox Corporation (NYSE:RBLXGet Free Report) shares gapped down prior to trading on Thursday after an insider sold shares in the company. The stock had previously closed at $57.95, but opened at $54.40. Roblox shares last traded at $54.89, with a volume of 1,633,671 shares changing hands.

Specifically, Director Gregory Baszucki sold 16,666 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $57.69, for a total value of $961,461.54. Following the transaction, the director owned 1,277,835 shares of the company’s stock, valued at $73,718,301.15. This represents a 1.29% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on RBLX shares. Wolfe Research initiated coverage on Roblox in a research note on Friday, May 1st. They set an “outperform” rating for the company. Canaccord Genuity Group reduced their target price on Roblox from $140.00 to $80.00 and set a “buy” rating on the stock in a report on Friday, May 1st. Barclays upgraded Roblox from an “equal weight” rating to an “outperform” rating in a report on Monday. Needham & Company LLC initiated coverage on Roblox in a research note on Monday. They issued a “buy” rating for the company. Finally, UBS Group assumed coverage on shares of Roblox in a research report on Monday. They issued a “buy” rating on the stock. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Roblox has an average rating of “Moderate Buy” and a consensus price target of $85.48.

Read Our Latest Stock Analysis on Roblox

Roblox News Roundup

Here are the key news stories impacting Roblox this week:

Roblox Trading Down 0.2%

The company has a fifty day simple moving average of $47.64 and a two-hundred day simple moving average of $61.03. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 2.45. The stock has a market capitalization of $37.13 billion, a P/E ratio of -34.99 and a beta of 1.41.

Roblox (NYSE:RBLXGet Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.41) by $0.06. The company had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.74 billion. Roblox had a negative return on equity of 277.69% and a negative net margin of 20.69%.The company’s revenue for the quarter was up 43.4% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.32) earnings per share. On average, sell-side analysts expect that Roblox Corporation will post -1.4 earnings per share for the current year.

Roblox declared that its Board of Directors has initiated a stock buyback plan 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 plans are generally a sign that the company’s board believes its shares are undervalued.

Institutional Trading of Roblox

Large investors have recently bought and sold shares of the business. Reyes Financial Architecture Inc. raised its holdings in Roblox by 164.4% during the 4th quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock worth $25,000 after buying an additional 194 shares during the period. Hanson & Doremus Investment Management acquired a new position in shares of Roblox in the first quarter valued at approximately $25,000. Fideuram Asset Management Ireland dac bought a new stake in shares of Roblox during the fourth quarter worth $27,000. Basecamp Wealth Advisors LLC raised its holdings in shares of Roblox by 98.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock worth $29,000 after acquiring an additional 252 shares during the period. Finally, GW&K Investment Management LLC raised its holdings in shares of Roblox by 76.3% during the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock worth $30,000 after acquiring an additional 161 shares during the period. 94.46% of the stock is owned by institutional investors.

About Roblox

(Get Free Report)

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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