Insider Selling: Roblox (NYSE:RBLX) Director Sells $674,473.02 in Stock

Key Points

• Roblox director Gregory Baszucki sold 16,666 shares for approximately $674,473 at an average price of $40.47, reducing his holdings by 1.3%. The transaction was made under a pre-arranged Rule 10b5-1 trading plan.
• Roblox shares rose 1.4% to $41.23, while the company’s latest quarterly results beat EPS expectations but missed revenue estimates; revenue still increased 8.3% year over year.
• Analysts maintain a consensus “Hold” rating with a $60.89 price target, while Roblox has authorized a $3 billion share-buyback program covering up to 9.5% of outstanding shares.

Roblox Corporation (NYSE:RBLX - Get Free Report) Director Gregory Baszucki sold 16,666 shares of the company'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 transaction of $674,473.02. Following the completion of the transaction, the director owned 1,261,169 shares in the company, valued at approximately $51,039,509.43. This represents a 1.30% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible 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 shares were sold at an average price of $57.69, for a total transaction of $961,461.54.

Roblox Stock Up 1.4%

NYSE RBLX traded up $0.56 during mid-day trading on Wednesday, reaching $41.23. The stock had a trading volume of 6,534,868 shares, compared to its average volume of 11,875,317. The stock has a market cap of $27.62 billion, a PE ratio of -28.83 and a beta of 1.47. Roblox Corporation has a 1 year low of $33.88 and a 1 year high of $142.00. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.82 and a quick ratio of 0.82. The company has a fifty day moving average price of $45.78 and a 200 day moving average price of $51.19.

Roblox (NYSE:RBLX - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, beating the consensus estimate of ($0.34) by $0.08. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%.The business had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same period last year, the business posted ($0.41) EPS. The company'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 earnings per share for the current year.

Roblox declared that its board has initiated 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 stock through open market purchases. Stock buyback plans are often a sign that the company's board believes its shares are undervalued.

Analyst Ratings Changes

RBLX has been the subject of several research reports. Barclays decreased their price objective on shares of Roblox from $60.00 to $47.00 and set an "equal weight" rating for the company in a report on Monday, August 3rd. Raymond James Financial assumed coverage on shares of Roblox in a research report on Monday, June 29th. They issued a "market perform" rating for the company. Wall Street Zen upgraded shares of Roblox from a "sell" rating to a "hold" rating in a research note on Saturday, July 18th. Oppenheimer lowered their price target on Roblox from $82.00 to $50.00 and set an "outperform" rating on the stock in a report on Tuesday, August 4th. Finally, BTIG Research downgraded Roblox from a "neutral" rating to a "sell" rating and set a $30.00 price target on the stock. in a research note on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fifteen have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, Roblox presently has a consensus rating of "Hold" and a consensus price target of $60.89.

Institutional Trading of Roblox

Several large investors have recently added to or reduced their stakes in the business. Baird Financial Group Inc. increased its holdings in Roblox by 1.4% in the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company's stock worth $767,000 after acquiring an additional 102 shares in the last quarter. Sunbelt Securities Inc. lifted its holdings in Roblox by 58.7% during the third quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock valued at $39,000 after purchasing an additional 105 shares in the last quarter. Brown Brothers Harriman & Co. boosted its position in shares of Roblox by 2.8% in the third quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company's stock worth $560,000 after purchasing an additional 110 shares during the period. NewEdge Advisors LLC boosted its position in shares of Roblox by 1.3% in the second quarter. NewEdge Advisors LLC now owns 10,374 shares of the company's stock worth $1,091,000 after purchasing an additional 138 shares during the period. Finally, L2 Asset Management LLC boosted its position in shares of Roblox by 5.9% in the third quarter. L2 Asset Management LLC now owns 2,783 shares of the company's stock worth $386,000 after purchasing an additional 154 shares during the period. 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.

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