Insider Selling: Roblox (NYSE:RBLX) CEO Sells $1,995,481.28 in Stock

Roblox Corporation (NYSE:RBLX) CEO David Baszucki sold 52,568 shares of the stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $37.96, for a total transaction of $1,995,481.28. Following the sale, the chief executive officer directly owned 799,646 shares in the company, valued at approximately $30,354,562.16. The trade was a 6.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 $0.33 during mid-day trading on Monday, reaching $38.70. 8,331,997 shares of the company’s stock were exchanged, compared to its average volume of 11,929,390. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.82 and a quick ratio of 0.82. Roblox Corporation has a 12-month low of $33.88 and a 12-month high of $142.00. The stock’s 50 day moving average is $47.11 and its 200 day moving average is $52.57. The company has a market cap of $25.93 billion, a price-to-earnings ratio of -27.06 and a beta of 1.46.

Roblox (NYSE:RBLX) last announced its earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, topping 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 during the quarter, compared to the consensus estimate of $1.60 billion. During the same period in the prior year, the company posted ($0.41) EPS. The business’s quarterly revenue was up 8.3% on a year-over-year basis. On average, research analysts expect that Roblox Corporation will post -1.39 EPS for the current year.

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

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. California State Teachers Retirement System increased its holdings in shares of Roblox by 5,370.1% in the second quarter. California State Teachers Retirement System now owns 49,445,613 shares of the company’s stock valued at $2,688,852,000 after purchasing an additional 48,541,681 shares during the last quarter. Readystate Asset Management LP boosted its stake in Roblox by 685.8% during the second quarter. Readystate Asset Management LP now owns 377,201 shares of the company’s stock worth $20,512,000 after buying an additional 329,201 shares during the last quarter. HB Wealth Management LLC grew its holdings in Roblox by 24.5% in the 2nd quarter. HB Wealth Management LLC now owns 19,542 shares of the company’s stock valued at $1,063,000 after buying an additional 3,844 shares in the last quarter. Saudi Central Bank increased its stake in shares of Roblox by 91.6% in the 2nd quarter. Saudi Central Bank now owns 41,683 shares of the company’s stock worth $2,267,000 after acquiring an additional 19,929 shares during the last quarter. Finally, Angeles Wealth Management LLC acquired a new stake in shares of Roblox in the 2nd quarter worth $915,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

RBLX has been the subject of a number of research reports. Moffett Nathanson reissued a “neutral” rating and set a $40.00 target price on shares of Roblox in a research note on Monday, August 3rd. Roth Capital set a $65.00 price objective on Roblox in a report on Tuesday, May 5th. Piper Sandler reissued a “neutral” rating and set a $47.00 target price (down from $50.00) on shares of Roblox in a report on Friday, July 31st. Deutsche Bank Aktiengesellschaft downgraded Roblox from a “buy” rating to a “hold” rating and decreased their target price for the company from $56.00 to $38.00 in a research report on Friday, July 31st. Finally, HSBC cut Roblox from a “buy” rating to a “hold” rating and set a $46.00 price target for the company. in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fifteen have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $60.89.

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.