Insider Selling: Roblox (NYSE:RBLX) CEO Sells $1,995,481.28 in Stock

Roblox Corporation (NYSE:RBLX) CEO David Baszucki sold 52,568 shares of the business’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $37.96, for a total transaction of $1,995,481.28. Following the transaction, the chief executive officer owned 799,646 shares in the company, valued at approximately $30,354,562.16. This trade represents a 6.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Roblox Trading Down 4.1%

Shares of RBLX stock opened at $37.53 on Thursday. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82. The company has a market capitalization of $25.14 billion, a price-to-earnings ratio of -26.24 and a beta of 1.46. Roblox Corporation has a 52-week low of $33.88 and a 52-week high of $142.00. The company has a 50-day simple moving average of $46.56 and a two-hundred day simple moving average of $52.05.

Roblox (NYSE:RBLX) last posted its earnings results on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, topping the consensus estimate 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 firm had revenue of $1.47 billion for the quarter, compared to analysts’ expectations of $1.60 billion. During the same quarter last year, the firm earned ($0.41) EPS. The company’s quarterly revenue was up 8.3% compared to the same quarter last year. Research analysts anticipate that Roblox Corporation will post -1.39 EPS for the current fiscal year.

Roblox announced that its Board of Directors has approved a share buyback plan on Tuesday, May 19th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the company to repurchase up to 9.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets

A number of brokerages have issued reports on RBLX. DA Davidson set a $40.00 price objective on Roblox in a research note on Friday, July 31st. Weiss Ratings reiterated a “sell (e+)” rating on shares of Roblox in a research note on Wednesday, June 24th. Oppenheimer cut their price target on shares of Roblox from $82.00 to $50.00 and set an “outperform” rating on the stock in a report on Tuesday, August 4th. Deutsche Bank Aktiengesellschaft lowered shares of Roblox from a “buy” rating to a “hold” rating and reduced their price target for the company from $56.00 to $38.00 in a research report on Friday, July 31st. Finally, Benchmark downgraded shares of Roblox from a “hold” rating to a “sell” rating and set a $33.00 price objective for the company. in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fifteen have given a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $60.89.

Institutional Trading of Roblox

Hedge funds have recently made changes to their positions in the company. NewEdge Advisors LLC increased its holdings in Roblox by 2.3% in the 1st quarter. NewEdge Advisors LLC now owns 10,236 shares of the company’s stock worth $597,000 after acquiring an additional 231 shares during the last quarter. Sivia Capital Partners LLC lifted its holdings in Roblox by 70.2% during the second quarter. Sivia Capital Partners LLC now owns 13,000 shares of the company’s stock valued at $1,368,000 after purchasing an additional 5,363 shares during the last quarter. CW Advisors LLC purchased a new stake in Roblox during the second quarter valued at about $272,000. Baird Financial Group Inc. boosted its position in Roblox by 1.4% during the second quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock worth $767,000 after purchasing an additional 102 shares during the period. Finally, WINTON GROUP Ltd bought a new position in Roblox during the second quarter worth about $438,000. 94.46% of the stock is currently owned by institutional investors.

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.