Michael Guthrie, Chief Financial Officer of Roblox Corp (NYSE:RBLX), recently sold 40,000 shares of the company's Class A common stock. The shares were sold at an average price of $52.07, totaling approximately $2.08 million. This transaction was part of a previously established Rule 10b5-1 trading plan. Following this sale, Guthrie retains direct ownership of 352,844 shares.
Additionally, on the same day, Guthrie exercised options to acquire 40,000 shares at a price of $0.53 per share, valued at $21,200. These exercises were also part of his compensation plan and have increased his holdings to 1,312,390 shares in total.
The transactions highlight Guthrie's ongoing involvement in managing his equity stake in Roblox, reflecting both a sale and an option exercise within his portfolio.
In other recent news, Roblox Corporation reported a substantial rise in bookings and daily active users (DAUs), outperforming expectations and prompting several financial firms to revise their price targets. Citi raised its target to $63, citing the company's robust third-quarter performance and increased full-year outlook. Deutsche Bank (ETR:DBKGn), Macquarie, Needham, BTIG, and Barclays (LON:BARC) also elevated their targets, acknowledging Roblox's strong earnings and revenue growth.
Roblox's third-quarter results showed revenues surging by 29% to $919 million and bookings growing by 34% to $1.13 billion. The company also noted a significant 27% increase in DAUs. These positive results led to Moody's (NYSE:MCO) upgrading Roblox's senior notes to BA1.
Roblox's improved performance has been attributed to various strategic initiatives such as enhanced search and discovery features, optimized monetization strategies, and improved app performance. Looking ahead, the company's fourth-quarter bookings guidance stands at $1.34-$1.36 billion, representing a 20% increase year-over-year at the midpoint, surpassing analyst expectations. Despite these positive developments, the fourth quarter will be compared to the prior year's PlayStation launch, with guidance assuming flat growth for console bookings.
InvestingPro Insights
Roblox Corp's recent stock performance and financial metrics provide additional context to CFO Michael Guthrie's recent transactions. According to InvestingPro data, Roblox's stock has shown strong momentum, with a 27.8% return over the last month and a substantial 51.92% gain over the past six months. This upward trend aligns with an InvestingPro Tip indicating that the stock is trading near its 52-week high, currently at 94.81% of that peak.
Despite the positive stock performance, it's important to note that Roblox faces some financial challenges. An InvestingPro Tip reveals that the company is not profitable over the last twelve months, with a negative operating income margin of -34.91%. However, there are signs of growth, as evidenced by the 27.98% revenue growth in the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Roblox, providing a deeper understanding of the company's financial health and market position. These insights can be particularly valuable when interpreting executive stock transactions like Guthrie's recent sale and option exercise.
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