Insider Selling: Roblox (NYSE:RBLX) Director Sells 16,666 Shares

Roblox Corporation (NYSE:RBLX) Director Gregory Baszucki sold 16,666 shares of the business’s stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $40.47, for a total value of $674,473.02. Following the completion of the transaction, the director directly owned 1,261,169 shares in the company, valued at approximately $51,039,509.43. This represents a 1.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Gregory Baszucki also recently made the following trade(s):

• On Tuesday, August 4th, Gregory Baszucki sold 16,666 shares of Roblox stock. The shares were sold at an average price of $37.46, for a total transaction of $624,308.36.
• On Wednesday, July 1st, Gregory Baszucki sold 16,666 shares of Roblox stock. The stock was sold at an average price of $57.69, for a total value of $961,461.54.

Roblox Price Performance

Shares of RBLX traded up $0.56 during mid-day trading on Wednesday, hitting $41.23. 6,534,868 shares of the stock were exchanged, compared to its average volume of 11,875,317. The company has a market cap of $27.62 billion, a PE ratio of -28.83 and a beta of 1.47. Roblox Corporation has a 52-week low of $33.88 and a 52-week high of $142.00. The firm has a 50-day moving average of $45.78 and a two-hundred day moving average of $51.19. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, beating analysts’ consensus estimates of ($0.34) by $0.08. The firm had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.60 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The firm’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.41) EPS. On average, equities analysts predict that Roblox Corporation will post -1.39 earnings per share for the current year.

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

Wall Street Analyst Weigh In

A number of research firms recently commented on RBLX. Morgan Stanley dropped their price target on shares of Roblox from $62.00 to $55.00 and set an “overweight” rating for the company in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft lowered shares of Roblox from a “buy” rating to a “hold” rating and reduced their price objective for the stock from $56.00 to $38.00 in a research report on Friday, July 31st. Barclays dropped their target price on Roblox from $60.00 to $47.00 and set an “equal weight” rating for the company in a research report on Monday, August 3rd. Benchmark cut Roblox from a “hold” rating to a “sell” rating and set a $33.00 target price on the stock. in a research note on Friday, July 31st. Finally, Wolfe Research downgraded Roblox from an “outperform” rating to a “hold” rating in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fifteen have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, Roblox presently has a consensus rating of “Hold” and an average target price of $60.89.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. NewEdge Advisors LLC boosted its position in Roblox by 2.3% in the 1st quarter. NewEdge Advisors LLC now owns 10,236 shares of the company’s stock valued at $597,000 after buying an additional 231 shares during the period. Sivia Capital Partners LLC raised its stake in shares of 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 acquiring an additional 5,363 shares in the last quarter. CW Advisors LLC purchased a new stake in shares of Roblox in the second quarter valued at approximately $272,000. Baird Financial Group Inc. grew its stake in Roblox by 1.4% in 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 in the last quarter. Finally, WINTON GROUP Ltd bought a new position in Roblox in the second quarter worth approximately $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.