Deepwater Asset Management LLC Invests $6.71 Million in Roblox Corporation $RBLX

Deepwater Asset Management LLC acquired a new stake in shares of Roblox Corporation (NYSE:RBLX) in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 82,841 shares of the company’s stock, valued at approximately $6,713,000. Roblox comprises about 2.0% of Deepwater Asset Management LLC’s holdings, making the stock its 21st largest holding.

A number of other institutional investors have also modified their holdings of the business. Baird Financial Group Inc. grew its position in shares of Roblox by 1.4% during the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock valued at $767,000 after buying an additional 102 shares during the last quarter. Sunbelt Securities Inc. grew its position in shares of Roblox by 58.7% during the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock valued at $39,000 after buying an additional 105 shares during the last quarter. Brown Brothers Harriman & Co. grew its position in shares of Roblox by 2.8% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company’s stock valued at $560,000 after buying an additional 110 shares during the last quarter. Westpac Banking Corp boosted its stake in Roblox by 0.6% during the 3rd quarter. Westpac Banking Corp now owns 20,043 shares of the company’s stock valued at $2,776,000 after purchasing an additional 115 shares during the period. Finally, NewEdge Advisors LLC boosted its stake in Roblox by 1.3% during the 2nd quarter. NewEdge Advisors LLC now owns 10,374 shares of the company’s stock valued at $1,091,000 after purchasing an additional 138 shares during the period. Institutional investors own 94.46% of the company’s stock.

Roblox Trading Up 0.2%

Shares of NYSE:RBLX opened at $41.92 on Monday. The company has a 50 day moving average of $51.24 and a 200-day moving average of $67.20. The firm has a market cap of $28.15 billion, a P/E ratio of -26.53 and a beta of 1.44. Roblox Corporation has a twelve month low of $40.15 and a twelve month high of $150.59. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.06. The company had revenue of $1.44 billion during 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 for the quarter was up 43.4% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.32) EPS. As a group, analysts anticipate that Roblox Corporation will post -1.4 earnings per share for the current fiscal year.

Roblox announced that its board has approved a share repurchase program on Tuesday, May 19th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the company to purchase 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 shares are undervalued.

Insider Buying and Selling

In other news, insider Matthew D. Kaufman sold 14,356 shares of the company’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $45.27, for a total value of $649,896.12. Following the completion of the sale, the insider directly owned 349,964 shares of the company’s stock, valued at approximately $15,842,870.28. This represents a 3.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO David Baszucki sold 50,628 shares of the business’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 transaction of $2,292,435.84. Following the completion of the sale, the chief executive officer owned 852,214 shares in the company, valued at $38,588,249.92. The trade was a 5.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 183,471 shares of company stock worth $8,930,068. Company insiders own 10.05% of the company’s stock.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. TD Cowen raised shares of Roblox from a “sell” rating to a “hold” rating and reduced their target price for the company from $54.00 to $49.00 in a research note on Friday, May 1st. Wolfe Research assumed coverage on shares of Roblox in a research note on Friday, May 1st. They set an “outperform” rating for the company. Citigroup reduced their target price on shares of Roblox from $90.00 to $70.00 and set a “buy” rating for the company in a research note on Monday, May 4th. Wall Street Zen lowered shares of Roblox from a “hold” rating to a “sell” rating in a research note on Saturday, May 30th. Finally, HSBC lowered shares of Roblox from a “buy” rating to a “hold” rating and set a $46.00 target price for the company. in a research note on Friday, May 1st. One 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 given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price 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.