Roblox (NYSE:RBLX) stock is in the spotlight following the sale of 766,000 shares by CEO David Baszucki. Shares of the online gaming services company have declined by over 10% since it reported earnings earlier this month. For the second quarter, revenue tallied in at $639.9 million, falling short of the consensus analyst estimate of $644.4 million. Revenue is largely attributed to Roblox’s virtual currency, “Robux.” Roblox players can buy Robux to buy clothes for their avatars or to use other in-game features.
The company was unprofitable during the quarter. Roblox reported an earnings per share loss of 30 cents. Analysts were expecting a loss of 21 cents. Finally, the company disclosed 52.2 million average daily active users, up 21% year-over-year, but lower than the 54.1 million users reported during the first quarter.
With that in mind, let’s get into the details of Baszucki’s sale.
RBLX Stock: CEO David Baszucki Sells Shares
There’s a silver lining behind the CEO’s sales. That’s because all 766,000 shares sold by Baszucki were received by him as part of an employee compensation plan. Baszucki received compensation in the form of options that he subsequently exercised and then sold. As a result, this sale is not overly significant and does not seem to convey Baszucki’s attitude towards his company.
However, a more significant sale can be attributed to Altos Ventures Managing Director Han Kim, who is a 10% owner of RBLX. Between Aug. 12 and 15, Kim sold 100,000 shares at average prices ranging between $49.26 and $51.87. After the sale, Kim still owns more than 1.4 million shares of the company. As of Aug. 16, Altos owns 47.11 million shares of RBLX, making it a top five shareholder of the company.
In the past year, Roblox insiders have purchased shares on the open market 19 times and sold shares 100 times. In the same time period, insiders have purchased 7.21 million shares and sold 31.01 million shares, for a net activity of 23.8 million shares sold.
Meanwhile, Roblox boasts an array of reputable institutional investors. Investment bank Morgan Stanley (NYSE:MS) owns 41.64 million shares and purchased 1.82 million shares during Q2. Furthermore, Vanguard owns 21.9 million shares and purchased 5.82 million shares during Q2. In total, 565 funds have a stake in RBLX, down from 590 during Q1.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
