Michael Guthrie, the Chief Financial Officer of Roblox Corp (NYSE:RBLX), has sold 30,000 shares of the company, totaling over $1.24 million. The transactions were carried out on October 7, according to a recent filing with the Securities and Exchange Commission.
The shares were sold at prices ranging from $41.27 to $41.76, averaging $41.4969 per share, as disclosed in the footnotes of the filing. Guthrie also acquired 30,000 shares on the same date through an option exercise at a price of $0.53 per share, which amounts to a total of $15,900.
Following these transactions, Guthrie’s direct holdings in Roblox Corp have been adjusted to 352,844 shares. Additionally, Guthrie is associated with a trust that holds 61,422 shares, which may be considered as beneficial ownership according to the filing’s footnotes.
These transactions were executed in accordance with a pre-arranged trading plan under Rule 10b5-1, which allows insiders to establish predetermined trading plans for buying or selling stocks at a future date.
Roblox Corp, known for its popular online gaming platform, has been a subject of investor interest as the company navigates through the dynamic gaming industry landscape. The sale by the company’s CFO might attract attention from market participants looking for signals about the company’s financial health and future prospects.
In other recent news, Roblox has seen multiple significant developments. Piper Sandler raised the price target for Roblox to $54.00, maintaining an Overweight rating based on strong Teen Survey data, suggesting a broader engagement with the Roblox platform among the teen demographic. Wells Fargo also revised its outlook on Roblox, projecting a 27.5% year-on-year increase in total bookings for the third quarter and a 22-25% year-on-year growth for the fourth quarter. The firm’s estimates also indicate an adjustment in Roblox’s full-year bookings guidance to a range of $4,330 million to $4,355 million.
However, Roblox has been the subject of skepticism by Hindenburg Research, which has taken a short position on the company, questioning the accuracy of Roblox’s user metrics. Additionally, the company’s CFO, Michael Guthrie, is transitioning to an advisory role, sparking a search for his successor.
Roblox also announced a partnership with Shopify (NYSE:) and introduced a creator affiliate program, aiming to foster developer engagement and long-term user growth. Furthermore, the company has decided to relocate its headquarters within San Mateo, California. These are the recent developments that investors should be aware of.
InvestingPro Insights
As Roblox Corp’s CFO Michael Guthrie adjusts his stake in the company, investors may be keen to understand the broader financial picture. According to InvestingPro data, Roblox boasts a substantial market capitalization of $27.05 billion, reflecting its significant presence in the online gaming industry.
Despite the recent insider sale, there are positive indicators for Roblox’s growth trajectory. An InvestingPro Tip highlights that analysts anticipate sales growth for the company in the current year. This optimism is supported by the impressive revenue growth of 29.81% over the last twelve months as of Q2 2023, with quarterly revenue growth reaching 31.26% in Q2 2023.
However, profitability remains a challenge for Roblox. The company is not profitable over the last twelve months, with a negative operating income margin of -37.63%. This aligns with another InvestingPro Tip suggesting that analysts do not anticipate the company will be profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 6 more tips available for Roblox Corp. These tips could provide valuable context for understanding the company’s financial position and market performance in light of the recent insider transaction.
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