David Baszucki Sells 52,568 Shares of Roblox (NYSE:RBLX) 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 Stock Performance

NYSE RBLX opened at $39.15 on Wednesday. The stock has a market capitalization of $26.23 billion, a price-to-earnings ratio of -27.38 and a beta of 1.46. Roblox Corporation has a twelve month low of $33.88 and a twelve month high of $142.00. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 7.82. The stock has a 50-day moving average of $46.77 and a 200 day moving average of $52.21.

Roblox (NYSE:RBLX) last issued its quarterly earnings data 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 company had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same period last year, the company earned ($0.41) earnings per share. Roblox’s quarterly revenue was up 8.3% compared to the same quarter last year. Sell-side analysts anticipate that Roblox Corporation will post -1.39 EPS for the current fiscal 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.

More Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Short interest fell 42.4% to 13.88 million shares as of August 14, down from 24.11 million shares on July 30. Only about 2.3% of Roblox’s outstanding shares are now sold short, and the short-interest ratio is 0.8 days. The reduction suggests that bearish investors have been covering positions, potentially reducing near-term selling pressure on RBLX. Roblox short interest data
• Neutral Sentiment: CEO David Baszucki, CFO Naveen Chopra, CAO Amy Rawlings, and other insiders collectively sold shares worth roughly $4.31 million in transactions dated August 20, with additional shares sold by Sean Jack Buckley on August 24. Most filings said the sales were made to cover tax obligations associated with equity-award vesting, rather than discretionary open-market selling. Roblox insider transaction filings
• Neutral Sentiment: Although the transactions reduced individual insider holdings by approximately 4% to 7%, the executives and directors continued to own substantial positions. As a result, the sales offer limited evidence of deteriorating management confidence and are unlikely to be a major catalyst by themselves. Sean Jack Buckley insider filing

Analyst Ratings Changes

A number of research firms have recently commented on RBLX. DA Davidson set a $40.00 target price on shares of Roblox in a research note on Friday, July 31st. Jefferies Financial Group lowered shares of Roblox from a “hold” rating to a “hold” rating in a research note on Friday, May 1st. Barclays lowered their price objective on Roblox from $60.00 to $47.00 and set an “equal weight” rating on the stock in a report on Monday, August 3rd. Wall Street Zen raised Roblox from a “sell” rating to a “hold” rating in a report on Saturday, July 18th. Finally, Citigroup decreased their target price on Roblox from $70.00 to $60.00 and set a “buy” rating on the stock in a research report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fifteen have issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Roblox presently has a consensus rating of “Hold” and a consensus price target of $60.89.

Hedge Funds Weigh In On Roblox

A number of institutional investors and hedge funds have recently bought and sold shares of RBLX. Allspring Global Investments Holdings LLC boosted its position in shares of Roblox by 379.8% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 921,424 shares of the company’s stock valued at $53,102,000 after acquiring an additional 729,379 shares during the last quarter. PensionDanmark Pensionsforsikringsaktieselskab increased its position in Roblox by 35.5% during the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 130,130 shares of the company’s stock worth $7,076,000 after purchasing an additional 34,120 shares during the last quarter. Glynn Capital Management LLC acquired a new stake in Roblox during the fourth quarter worth about $5,706,000. Militia Capital Management LLC purchased a new position in Roblox during the first quarter worth about $2,590,000. Finally, Assenagon Asset Management S.A. raised its stake in Roblox by 89.0% during the second quarter. Assenagon Asset Management S.A. now owns 1,893,790 shares of the company’s stock worth $102,984,000 after purchasing an additional 891,634 shares during the period. 94.46% of the stock is currently 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.