Roblox (NYSE:RBLX) Stock Price Down 7.9% Following Insider Selling

Roblox Co. (NYSE:RBLX) shares were down 7.9% during trading on Friday following insider selling activity. The stock traded as low as $54.18 and last traded at $53.97. Approximately 4,352,132 shares changed hands during mid-day trading, a decline of 42% from the average daily volume of 7,532,069 shares. The stock had previously closed at $58.57.

Specifically, CFO Michael Guthrie sold 50,000 shares of the stock in a transaction that occurred on Tuesday, March 4th. The shares were sold at an average price of $60.14, for a total value of $3,007,000.00. Following the completion of the transaction, the chief financial officer now owns 395,465 shares of the company’s stock, valued at $23,783,265.10. This represents a 11.22 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Christopher Carvalho sold 12,986 shares of the stock in a transaction that occurred on Monday, March 3rd. The shares were sold at an average price of $63.57, for a total transaction of $825,520.02. Following the completion of the transaction, the director now directly owns 982,412 shares of the company’s stock, valued at approximately $62,451,930.84. The trade was a 1.30 % decrease in their position. The disclosure for this sale can be found here. In other news, CEO David Baszucki sold 195,068 shares of the firm’s stock in a transaction on Monday, March 3rd. The shares were sold at an average price of $64.94, for a total transaction of $12,667,715.92. Following the completion of the transaction, the chief executive officer now owns 122,853 shares of the company’s stock, valued at approximately $7,978,073.82. This trade represents a 61.36 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Analyst Ratings Changes

Several research firms have recently issued reports on RBLX. The Goldman Sachs Group raised their price target on shares of Roblox from $55.00 to $63.00 and gave the company a “neutral” rating in a research note on Friday, February 7th. Citigroup raised their price target on shares of Roblox from $63.00 to $82.00 and gave the company a “buy” rating in a research note on Monday, February 3rd. HSBC began coverage on shares of Roblox in a research note on Thursday, December 12th. They set a “buy” rating and a $63.00 price target for the company. Roth Mkm raised their price target on shares of Roblox from $54.00 to $70.00 and gave the company a “neutral” rating in a research note on Monday, January 27th. Finally, OTR Global raised shares of Roblox from a “mixed” rating to a “positive” rating in a research note on Monday, February 3rd. One research analyst has rated the stock with a sell rating, six have issued a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $64.19.

Roblox Price Performance

The stock has a market capitalization of $35.43 billion, a price-to-earnings ratio of -39.48 and a beta of 1.49. The business’s fifty day moving average price is $64.28 and its 200-day moving average price is $53.79. The company has a debt-to-equity ratio of 4.82, a current ratio of 1.02 and a quick ratio of 0.98.

Roblox (NYSE:RBLX) last released its quarterly earnings results on Thursday, February 6th. The company reported ($0.33) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.46) by $0.13. Roblox had a negative net margin of 25.97% and a negative return on equity of 665.98%. On average, research analysts forecast that Roblox Co. will post -1.49 EPS for the current year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Versant Capital Management Inc lifted its position in shares of Roblox by 83.9% during the fourth quarter. Versant Capital Management Inc now owns 524 shares of the company’s stock valued at $30,000 after purchasing an additional 239 shares in the last quarter. Gordian Capital Singapore Pte Ltd raised its position in Roblox by 74.8% in the fourth quarter. Gordian Capital Singapore Pte Ltd now owns 561 shares of the company’s stock worth $32,000 after acquiring an additional 240 shares during the period. Frazier Financial Advisors LLC raised its position in Roblox by 20,800.0% in the third quarter. Frazier Financial Advisors LLC now owns 627 shares of the company’s stock worth $28,000 after acquiring an additional 624 shares during the period. Colonial Trust Co SC bought a new stake in Roblox in the fourth quarter worth about $41,000. Finally, Parkside Financial Bank & Trust raised its position in Roblox by 44.5% in the fourth quarter. Parkside Financial Bank & Trust now owns 747 shares of the company’s stock worth $43,000 after acquiring an additional 230 shares during the period. 94.46% of the stock is owned by institutional investors.

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.