Insider Selling: Roblox (NYSE:RBLX) Director Sells $961,461.54 in Stock

Roblox Corporation (NYSE:RBLX) Director Gregory Baszucki sold 16,666 shares of Roblox stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $57.69, for a total transaction of $961,461.54. Following the completion of the transaction, the director directly owned 1,277,835 shares of the company’s stock, valued at $73,718,301.15. This trade represents a 1.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Tuesday, May 5th, Gregory Baszucki sold 16,666 shares of Roblox stock. The stock was sold at an average price of $44.97, for a total transaction of $749,470.02.

Roblox Price Performance

RBLX opened at $55.29 on Friday. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 2.45. The company’s 50-day moving average price is $47.64 and its 200 day moving average price is $61.03. Roblox Corporation has a fifty-two week low of $40.15 and a fifty-two week high of $150.59. The firm has a market cap of $37.13 billion, a price-to-earnings ratio of -34.99 and a beta of 1.41.

Roblox (NYSE:RBLX) last issued its earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.06. The company had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.74 billion. Roblox had a negative return on equity of 277.69% and a negative net margin of 20.69%.Roblox’s quarterly revenue was up 43.4% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.32) earnings per share. As a group, sell-side analysts expect that Roblox Corporation will post -1.4 earnings per share for the current year.

Roblox announced that its Board of Directors has initiated a stock repurchase program on Tuesday, May 19th that authorizes the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 9.5% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its stock is undervalued.

Institutional Trading of Roblox

Large investors have recently added to or reduced their stakes in the business. Norges Bank acquired a new position in Roblox during the 4th quarter worth $435,424,000. SRS Investment Management LLC bought a new position in shares of Roblox in the fourth quarter worth $238,065,000. Amundi increased its holdings in shares of Roblox by 83.7% during the first quarter. Amundi now owns 5,774,151 shares of the company’s stock valued at $326,586,000 after purchasing an additional 2,631,074 shares during the period. Capital International Investors increased its holdings in shares of Roblox by 7.3% during the fourth quarter. Capital International Investors now owns 31,953,301 shares of the company’s stock valued at $2,589,282,000 after purchasing an additional 2,184,439 shares during the period. Finally, ValueAct Holdings L.P. raised its stake in shares of Roblox by 39.5% during the fourth quarter. ValueAct Holdings L.P. now owns 5,975,821 shares of the company’s stock valued at $484,221,000 after purchasing an additional 1,692,600 shares in the last quarter. 94.46% of the stock is currently owned by institutional investors and hedge funds.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Negative Sentiment: Roblox is facing a securities class action over claims that its Q1 report failed to fully account for the impact of age-check changes on user growth, keeping legal and reputational risk in focus. Roblox Corporation Faces Securities Class Action Amid Surprise Age Verification Impact
• Negative Sentiment: Multiple law firms are reminding investors about the lead-plaintiff deadline, reinforcing headline risk and suggesting the litigation story is still gathering momentum. RBLX Shareholder Action Reminder
• Negative Sentiment: Insider selling by Director Gregory Baszucki added to cautious sentiment, even though the sale was made under a pre-arranged 10b5-1 trading plan. Insider Selling: Roblox Director Sells 16,666 Shares
• Neutral Sentiment: Roblox also partnered with EDO to add TV-style ad benchmarks to its platform, a longer-term monetization development that could help advertising demand but is not an immediate catalyst. Roblox Partners With EDO To Bring TV Style Ad Benchmarks In Game

Analyst Ratings Changes

RBLX has been the topic of several analyst reports. Barclays raised Roblox from an “equal weight” rating to an “outperform” rating in a research report on Monday, June 29th. Roth Mkm set a $65.00 price target on shares of Roblox in a report on Tuesday, May 5th. Wolfe Research started coverage on shares of Roblox in a research report on Friday, May 1st. They set an “outperform” rating for the company. Bank of America lowered shares of Roblox from a “buy” rating to a “neutral” rating and set a $48.00 price target for the company. in a research report on Friday, May 1st. Finally, BTIG Research cut shares of Roblox from a “buy” rating to a “neutral” rating in a report on Friday, May 1st. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Roblox presently has a consensus rating of “Moderate Buy” and a consensus price target of $85.48.

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.