Andrea Wong Sells 562 Shares of Roblox (NYSE:RBLX) Stock

by · The Cerbat Gem

Roblox Corporation (NYSE:RBLX – Get Free Report) Director Andrea Wong sold 562 shares of the company’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $40.89, for a total transaction of $22,980.18. Following the sale, the director directly owned 45,265 shares of the company’s stock, valued at $1,850,885.85. This represents a 1.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link.

Roblox Trading Down 2.1%

Shares of Roblox stock traded down $0.85 during trading on Tuesday, hitting $40.44. The stock had a trading volume of 9,231,687 shares, compared to its average volume of 11,907,248. The stock has a 50 day simple moving average of $45.92 and a 200 day simple moving average of $51.39. The company has a market capitalization of $27.09 billion, a PE ratio of -28.28 and a beta of 1.46. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82. Roblox Corporation has a 1 year low of $33.88 and a 1 year high of $142.00.

Roblox (NYSE:RBLX – Get Free Report) 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 business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same quarter in the previous year, the business earned ($0.41) earnings per share. The firm’s revenue was up 8.3% compared to the same quarter last year. On average, research analysts expect that Roblox Corporation will post -1.39 EPS for the current fiscal year.

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

Hedge Funds Weigh In On Roblox

Several institutional investors and hedge funds have recently modified their holdings of the stock. Hanson & Doremus Investment Management purchased a new stake in shares of Roblox during the first quarter worth $25,000. Fideuram Asset Management Ireland dac purchased a new position in Roblox in the fourth quarter valued at about $27,000. Basecamp Wealth Advisors LLC grew its stake in Roblox by 98.8% in the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock valued at $29,000 after purchasing an additional 252 shares in the last quarter. GW&K Investment Management LLC increased its position in Roblox by 76.3% in the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock worth $30,000 after purchasing an additional 161 shares during the last quarter. Finally, Root Financial Partners LLC increased its position in Roblox by 100.7% in the 1st quarter. Root Financial Partners LLC now owns 564 shares of the company’s stock worth $32,000 after purchasing an additional 283 shares during the last quarter. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

Roblox News Roundup

Here are the key news stories impacting Roblox this week:

  • Positive Sentiment: The European Union’s classification of Roblox under its Digital Services Act appears to have provided some initial relief by clarifying the company’s regulatory status. The designation could reduce uncertainty for investors and may explain the earlier rally in the shares. Roblox Stock Climbs After EU Digital Services Act Classification
  • Neutral Sentiment: Roblox, along with ChatGPT and Reddit, must comply with the EU’s “very large online platform” rules. The requirements increase oversight of content moderation, user safety, advertising transparency and data practices, but the immediate financial impact remains unclear. ChatGPT, Reddit, Roblox to Adhere to EU Rules
  • Negative Sentiment: ARK Invest continued trimming its Roblox position. The selling is weighing on sentiment and is particularly notable because Roblox underperformed broader gaming comparisons despite having no new company-specific negative announcement. Roblox Falls as ARK Keeps Selling
  • Negative Sentiment: The EU designation also creates longer-term compliance risks and potentially higher operating costs. Increased scrutiny could pressure Roblox’s moderation, privacy and advertising practices, adding to investor concerns while the company remains unprofitable. EU to Hold Roblox to Higher Standard of Scrutiny

Analysts Set New Price Targets

A number of brokerages have recently weighed in on RBLX. Benchmark downgraded Roblox from a “hold” rating to a “sell” rating and set a $33.00 price target on the stock. in a report on Friday, July 31st. B. Riley Financial reduced their price objective on Roblox from $80.00 to $45.00 and set a “buy” rating for the company in a research note on Monday, August 3rd. Wedbush lowered Roblox from an “outperform” rating to a “neutral” rating and decreased their price objective for the stock from $65.00 to $40.00 in a research report on Friday, July 31st. BMO Capital Markets cut Roblox from an “outperform” rating to a “market perform” rating and set a $45.00 target price on the stock. in a research note on Friday, July 31st. Finally, Cantor Fitzgerald initiated coverage on Roblox in a report on Monday, June 29th. They issued an “overweight” rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fifteen have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $60.89.

Check Out Our Latest Report on RBLX

Roblox Company Profile

(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.

See Also