SAN MATEO, Calif.—Gregory Baszucki, a director at Roblox Corp (NYSE:RBLX), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Baszucki sold 26,000 shares of Roblox's Class A common stock on November 27, 2024. The shares were sold at prices ranging from $49.34 to $50.02, totaling approximately $1.29 million. The sale comes as Roblox stock, now trading at $52.16, has shown remarkable momentum with a 51% gain over the past six months, approaching its 52-week high of $55.10.
Post-transaction, Baszucki holds 9,441,338 shares indirectly through the Greg and Christina Baszucki Living Trust. Additionally, he maintains direct ownership of 1,319,500 shares through various trusts and accounts, including a Roth IRA.
These transactions were executed under a Rule 10b5-1 trading plan, which allows company insiders to sell a predetermined number of shares at a set time to avoid potential allegations of insider trading.
In other recent news, Roblox Corporation has been the subject of significant attention due to its strong financial performance. The company reported a 29% increase in revenues to $919 million and a 34% growth in bookings, reaching $1.13 billion. These figures were accompanied by a 27% rise in daily active users, reaching 88.9 million.
TD Cowen reiterated a Sell rating on Roblox citing potential risks to the company's fourth-quarter performance, while other firms such as Deutsche Bank (ETR:DBKGn), Citi, and Macquarie expressed optimism about the company's future. Deutsche Bank and Macquarie attribute the growth momentum to significant improvements to the platform, such as improved discovery, personalization, and dynamic pricing.
Analysts from various firms, including Citi, Deutsche Bank, and Macquarie, have raised their price targets for Roblox following its strong third-quarter performance. The company's fourth-quarter bookings guidance stands at $1.34-$1.36 billion, representing a 20% year-over-year increase.
Roblox's strong performance has been attributed to factors such as the availability of PlayStation 5, the implementation of new Search & Discovery (NASDAQ:WBD) algorithms, and the enhancement of search and discovery features. Despite these positive developments, TD Cowen's analysis serves as a note of caution to investors regarding the company's near-term prospects.
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