Roblox (NYSE:RBLX) CEO David Baszucki Sells 52,568 Shares

Roblox Corporation (NYSE:RBLX – Get Free Report) CEO David Baszucki sold 52,568 shares of Roblox stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $1,995,481.28. Following the transaction, the chief executive officer directly owned 799,646 shares of the company’s stock, valued at $30,354,562.16. The trade was a 6.17% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Roblox Trading Up 0.9%

Shares of Roblox stock opened at $38.70 on Tuesday. Roblox Corporation has a 12-month low of $33.88 and a 12-month high of $142.00. The company has a market cap of $25.93 billion, a price-to-earnings ratio of -27.06 and a beta of 1.46. 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 company’s 50-day moving average price is $46.97 and its 200-day moving average price is $52.38.

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Roblox (NYSE:RBLX – Get Free Report) 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. The company had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.60 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. Roblox’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.41) earnings per share. On average, equities analysts expect that Roblox Corporation will post -1.39 earnings per share for the current fiscal year.

Roblox declared that its Board of Directors has approved a stock buyback plan on Tuesday, May 19th that permits the company to repurchase $3.00 billion in shares. This repurchase authorization permits the company to repurchase up to 9.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Roblox News Roundup

Here are the key news stories impacting Roblox this week:

• Neutral Sentiment: CEO David Baszucki, CFO Naveen K. Chopra, CAO Amy Marie Rawlings, and insiders Mark Reinstra, Sean Jack Buckley, and Matthew D. Kaufman collectively sold 113,583 shares worth approximately $4.31 million on August 20, at prices near $37.96–$37.97. Each filing stated that the shares were sold to cover tax withholding obligations tied to vested equity awards, limiting the negative signal typically associated with open-market insider selling. Roblox insider transaction filings
• Neutral Sentiment: Although the sales reduced each insider’s individual holdings by roughly 4% to 7%, the executives and insiders continued to retain substantial positions in Roblox. The filings therefore provide limited evidence of declining confidence in the company’s outlook. Roblox CFO transaction filing

Hedge Funds Weigh In On Roblox

Several institutional investors have recently modified their holdings of RBLX. California State Teachers Retirement System boosted its stake in shares of Roblox by 5,370.1% in the 2nd 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 in the last quarter. Norges Bank purchased a new position in Roblox in the 4th quarter worth $435,424,000. SRS Investment Management LLC bought a new stake in Roblox in the fourth quarter worth $238,065,000. Amundi lifted its stake in Roblox by 83.7% in the first quarter. Amundi now owns 5,774,151 shares of the company’s stock worth $326,586,000 after purchasing an additional 2,631,074 shares during the last quarter. Finally, Capital International Investors boosted its position in 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 buying an additional 2,184,439 shares during the period. 94.46% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. Arete Research set a $95.00 price objective on Roblox and gave the stock a “buy” rating in a research report on Monday, June 29th. B. Riley Financial reduced their target price on Roblox from $80.00 to $45.00 and set a “buy” rating for the company in a research report on Monday, August 3rd. Barclays decreased their target price on Roblox from $60.00 to $47.00 and set an “equal weight” rating on the stock in a research note on Monday, August 3rd. Raymond James Financial initiated coverage on Roblox in a research report on Monday, June 29th. They set a “market perform” rating for the company. Finally, HSBC lowered Roblox from a “buy” rating to a “hold” rating and set a $46.00 price objective for the company. in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fifteen have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, Roblox currently has an average rating of “Hold” and a consensus target price of $60.89.

Check Out Our Latest Stock Report on RBLX

Roblox Company Profile

(Get Free Report)

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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