Roblox (NYSE:RBLX) CEO David Baszucki Sells 50,628 Shares

Key Points

• Roblox CEO David Baszucki sold 50,628 shares on May 20 at an average price of $45.28, totaling about $2.29 million. The company said the sale was made to cover tax withholding obligations tied to vested equity awards.
• Roblox shares were up 4.5% in Friday trading to $48.23, though the stock remains well below its 50-day and 200-day moving averages. The company’s market cap is about $32.4 billion.
• Roblox recently authorized a $3 billion share repurchase program, covering up to 9.5% of its stock. Analysts currently have a consensus “Hold” rating on the stock, with an average price target of $87.07.

Roblox Corporation (NYSE:RBLX - Get Free Report) CEO David Baszucki sold 50,628 shares of the business's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $45.28, for a total value of $2,292,435.84. Following the transaction, the chief executive officer directly owned 852,214 shares in the company, valued at approximately $38,588,249.92. This represents a 5.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Roblox Trading Up 4.5%

Roblox stock traded up $2.09 during mid-day trading on Friday, hitting $48.23. The company's stock had a trading volume of 10,126,707 shares, compared to its average volume of 11,949,403. The company has a 50 day moving average of $53.81 and a 200-day moving average of $71.69. The stock has a market cap of $32.39 billion, a PE ratio of -30.53 and a beta of 1.50. The company has a debt-to-equity ratio of 2.45, a quick ratio of 0.89 and a current ratio of 0.89. Roblox Corporation has a one year low of $40.15 and a one year high of $150.59.

Roblox (NYSE:RBLX - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, beating the consensus estimate of ($0.41) by $0.06. Roblox had a negative return on equity of 277.69% and a negative net margin of 20.69%.The company had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.74 billion. During the same quarter in the prior year, the company posted ($0.32) EPS. Roblox's quarterly revenue was up 43.4% on a year-over-year basis. On average, research analysts anticipate that Roblox Corporation will post -1.4 EPS for the current year.

Roblox announced that its Board of Directors has authorized a share repurchase program on Tuesday, May 19th that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes the company to repurchase up to 9.5% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

Analysts Set New Price Targets

A number of brokerages recently weighed in on RBLX. JPMorgan Chase & Co. decreased their price objective on Roblox from $100.00 to $75.00 and set a "neutral" rating for the company in a research note on Friday, February 6th. DA Davidson decreased their price objective on Roblox from $47.50 to $45.00 and set a "neutral" rating for the company in a research note on Friday. TD Cowen upgraded Roblox from a "sell" rating to a "hold" rating and decreased their price target for the company from $54.00 to $49.00 in a research note on Friday, May 1st. Wall Street Zen upgraded Roblox from a "sell" rating to a "hold" rating in a research note on Saturday, March 28th. Finally, Canaccord Genuity Group decreased their price target on Roblox from $140.00 to $80.00 and set a "buy" rating for the company in a research note on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Roblox currently has a consensus rating of "Hold" and an average target price of $87.07.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Vanguard Group Inc. grew its holdings in Roblox by 1.6% during the fourth quarter. Vanguard Group Inc. now owns 63,458,784 shares of the company's stock worth $5,142,065,000 after acquiring an additional 1,020,786 shares during the period. Capital International Investors grew its holdings in Roblox by 7.3% during the fourth quarter. Capital International Investors now owns 31,953,301 shares of the company's stock worth $2,589,282,000 after acquiring an additional 2,184,439 shares during the period. Morgan Stanley grew its holdings in Roblox by 8.1% during the fourth quarter. Morgan Stanley now owns 20,728,914 shares of the company's stock worth $1,679,664,000 after acquiring an additional 1,555,549 shares during the period. State Street Corp grew its holdings in Roblox by 3.3% during the fourth quarter. State Street Corp now owns 13,812,362 shares of the company's stock worth $1,119,216,000 after acquiring an additional 442,518 shares during the period. Finally, Geode Capital Management LLC grew its holdings in Roblox by 4.7% during the fourth quarter. Geode Capital Management LLC now owns 12,220,045 shares of the company's stock worth $988,002,000 after acquiring an additional 547,103 shares during the period. 94.46% of the stock is owned by institutional investors and hedge funds.

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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