Roblox (NYSE:RBLX) CEO Sells $2,292,435.84 in Stock

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

Roblox Price Performance

RBLX stock traded up $2.09 during mid-day trading on Friday, reaching $48.23. 10,126,707 shares of the company’s stock were exchanged, compared to its average volume of 11,949,403. The company has a market cap of $32.39 billion, a price-to-earnings ratio of -30.53 and a beta of 1.50. The stock’s 50 day moving average is $53.81 and its 200 day moving average is $71.69. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89. Roblox Corporation has a 12-month low of $40.15 and a 12-month high of $150.59.

Roblox (NYSE:RBLX) last announced its quarterly earnings data on Thursday, April 30th. The company reported ($0.35) earnings per share for the quarter, beating analysts’ consensus estimates 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 analyst estimates of $1.74 billion. During the same quarter last year, the firm posted ($0.32) EPS. The firm’s revenue for the quarter was up 43.4% on a year-over-year basis. On average, research analysts expect that Roblox Corporation will post -1.4 EPS for the current year.

Roblox declared that its Board of Directors has approved a share buyback program 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 programs are typically an indication that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On Roblox

A number of institutional investors have recently modified their holdings of the company. Pilgrim Partners Asia Pte Ltd acquired a new position in Roblox during the 3rd quarter worth $26,000. Whittier Trust Co. of Nevada Inc. acquired a new position in Roblox during the 3rd quarter worth $37,000. Root Financial Partners LLC acquired a new position in Roblox during the 3rd quarter worth $38,000. Sunbelt Securities Inc. grew its stake in Roblox by 58.7% during the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock worth $39,000 after purchasing an additional 105 shares in the last quarter. Finally, Horizon Investments LLC grew its stake in Roblox by 2,636.4% during the 3rd quarter. Horizon Investments LLC now owns 301 shares of the company’s stock worth $42,000 after purchasing an additional 290 shares in the last quarter. 94.46% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities analysts recently commented on RBLX shares. Wells Fargo & Company reduced their price objective on Roblox from $97.00 to $78.00 and set an “overweight” rating on the stock in a research report on Monday, April 6th. Benchmark reissued a “hold” rating on shares of Roblox in a research note on Monday, February 2nd. Oppenheimer started coverage on Roblox in a research note on Friday, May 1st. They set an “outperform” rating for the company. The Goldman Sachs Group cut their target price on Roblox from $125.00 to $65.00 and set a “buy” rating for the company in a research note on Friday, May 1st. Finally, Barclays cut their target price on Roblox from $115.00 to $60.00 and set an “equal weight” rating for the company in a research note on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $87.07.

Roblox Company Profile

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.