Roblox (NYSE:RBLX) Trading Down 4.1% After Insider Selling

Shares of Roblox Co. (NYSE:RBLX) dropped 4.1% during trading on Thursday following insider selling activity. The stock traded as low as $49.29 and last traded at $49.40. Approximately 4,303,808 shares traded hands during mid-day trading, a decline of 43% from the average daily volume of 7,581,167 shares. The stock had previously closed at $51.52.

Specifically, CEO David Baszucki sold 166,666 shares of the firm’s stock in a transaction on Monday, November 18th. The stock was sold at an average price of $50.71, for a total transaction of $8,451,632.86. Following the completion of the sale, the chief executive officer now owns 135,755 shares of the company’s stock, valued at $6,884,136.05. This trade represents a 55.11 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Michael Guthrie sold 40,000 shares of the stock in a transaction on Friday, November 15th. The shares were sold at an average price of $52.07, for a total transaction of $2,082,800.00. Following the completion of the transaction, the chief financial officer now directly owns 352,844 shares in the company, valued at $18,372,587.08. This trade represents a 10.18 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In related news, Director Anthony P. Lee sold 25,000 shares of the stock in a transaction dated Friday, November 15th. The shares were sold at an average price of $52.34, for a total transaction of $1,308,500.00. Following the completion of the transaction, the director now directly owns 5,731,695 shares of the company’s stock, valued at $299,996,916.30. This represents a 0.43 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link.

Wall Street Analysts Forecast Growth

RBLX has been the subject of several analyst reports. Wells Fargo & Company upped their target price on Roblox from $54.00 to $58.00 and gave the company an “overweight” rating in a research note on Friday, November 1st. The Goldman Sachs Group lifted their target price on Roblox from $45.00 to $55.00 and gave the stock a “neutral” rating in a research report on Friday, November 1st. Wedbush reaffirmed an “outperform” rating and set a $49.00 target price on shares of Roblox in a report on Friday, October 25th. Benchmark raised their price target on shares of Roblox from $44.00 to $60.00 and gave the company a “buy” rating in a research note on Friday, November 1st. Finally, Macquarie upped their price objective on shares of Roblox from $50.00 to $58.00 and gave the stock an “outperform” rating in a report on Friday, November 1st. Seven equities research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $55.30.

Roblox Price Performance

The company has a debt-to-equity ratio of 5.64, a current ratio of 0.98 and a quick ratio of 0.98. The firm has a 50 day moving average of $45.85 and a 200-day moving average of $40.82.

Roblox (NYSE:RBLX) last posted its quarterly earnings results on Thursday, October 31st. The company reported ($0.37) EPS for the quarter, beating the consensus estimate of ($0.39) by $0.02. The business had revenue of $919.00 million for the quarter, compared to analysts’ expectations of $1.02 billion. Roblox had a negative net margin of 30.90% and a negative return on equity of 986.36%. Roblox’s revenue was up 9.5% on a year-over-year basis. During the same period in the previous year, the company posted ($0.45) EPS. On average, research analysts forecast that Roblox Co. will post -1.56 earnings per share for the current year.

Institutional Investors Weigh In On Roblox

Several institutional investors and hedge funds have recently modified their holdings of RBLX. Virtu Financial LLC bought a new stake in Roblox during the third quarter worth approximately $2,341,000. Toronto Dominion Bank raised its position in shares of Roblox by 34.3% during the third quarter. Toronto Dominion Bank now owns 60,092 shares of the company’s stock valued at $2,660,000 after buying an additional 15,333 shares during the last quarter. Geode Capital Management LLC raised its holdings in Roblox by 5.2% in the 3rd quarter. Geode Capital Management LLC now owns 8,332,563 shares of the company’s stock valued at $368,003,000 after acquiring an additional 408,915 shares in the last quarter. M&T Bank Corp lifted its position in Roblox by 7.0% in the third quarter. M&T Bank Corp now owns 20,105 shares of the company’s stock worth $889,000 after purchasing an additional 1,324 shares during the period. Finally, Nomura Asset Management Co. Ltd. lifted its holdings in shares of Roblox by 7.4% during the 3rd quarter. Nomura Asset Management Co. Ltd. now owns 130,750 shares of the company’s stock worth $5,787,000 after acquiring an additional 8,970 shares during the period. Institutional investors and hedge funds own 91.08% of the company’s stock.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.