AXQ Capital LP Increases Stake in Roblox Corporation $RBLX

AXQ Capital LP raised its holdings in shares of Roblox Corporation (NYSE:RBLX) by 662.6% in the fourth quarter, Holdings Channel reports. The institutional investor owned 29,110 shares of the company’s stock after acquiring an additional 25,293 shares during the period. Roblox comprises about 0.5% of AXQ Capital LP’s portfolio, making the stock its 16th biggest holding. AXQ Capital LP’s holdings in Roblox were worth $2,359,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of RBLX. Reyes Financial Architecture Inc. boosted its position in shares of Roblox by 164.4% in the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock worth $25,000 after purchasing an additional 194 shares during the period. Fideuram Asset Management Ireland dac bought a new position in Roblox during the fourth quarter valued at $27,000. Indiana Trust & Investment Management Co bought a new position in Roblox during the fourth quarter valued at $32,000. Garner Asset Management Corp purchased a new stake in shares of Roblox in the fourth quarter valued at $37,000. Finally, Sunbelt Securities Inc. raised its stake in shares of Roblox by 58.7% in the third quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock valued at $39,000 after acquiring an additional 105 shares during the period. 94.46% of the stock is currently owned by institutional investors.

Roblox Price Performance

NYSE:RBLX opened at $47.02 on Tuesday. The firm has a market cap of $31.58 billion, a price-to-earnings ratio of -29.76 and a beta of 1.44. The company has a 50 day moving average price of $52.27 and a 200-day moving average price of $68.85. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89. Roblox Corporation has a 1-year low of $40.15 and a 1-year high of $150.59.

Roblox (NYSE:RBLX) last issued its quarterly 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. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The company had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.74 billion. During the same quarter in the previous year, the firm earned ($0.32) EPS. The firm’s revenue was up 43.4% compared to the same quarter last year. Equities research analysts forecast that Roblox Corporation will post -1.4 EPS for the current year.

Roblox announced that its board has authorized a share buyback program on Tuesday, May 19th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the company to purchase 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.

Insider Activity

In other Roblox news, insider Mark Reinstra sold 18,653 shares of the company’s stock in a transaction dated Monday, April 13th. The shares were sold at an average price of $57.94, for a total value of $1,080,754.82. Following the transaction, the insider owned 455,473 shares of the company’s stock, valued at $26,390,105.62. This represents a 3.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Naveen K. Chopra sold 16,863 shares of the company’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $45.28, for a total transaction of $763,556.64. Following the completion of the transaction, the chief financial officer directly owned 380,758 shares in the company, valued at $17,240,722.24. The trade was a 4.24% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 183,471 shares of company stock worth $8,930,068. Insiders own 10.05% of the company’s stock.

Wall Street Analysts Forecast Growth

RBLX has been the topic of several recent analyst reports. Morgan Stanley reissued an “overweight” rating and issued a $62.00 target price on shares of Roblox in a research note on Friday, May 1st. UBS Group cut their target price on shares of Roblox from $74.00 to $49.00 and set a “neutral” rating on the stock in a research report on Friday, May 1st. Wells Fargo & Company cut their target price on shares of Roblox from $97.00 to $78.00 and set an “overweight” rating on the stock in a research report on Monday, April 6th. Bank of America cut shares of Roblox from a “buy” rating to a “neutral” rating and set a $48.00 price target on the stock. in a report on Friday, May 1st. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Roblox in a report on Friday, March 27th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Roblox currently has an average rating of “Hold” and a consensus price target of $87.07.

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.