Have Roblox Insiders Been Selling Stock?

Some Roblox Corporation (NYSE:RBLX) shareholders may be a little concerned to see that the Chief Product Officer, Manuel Bronstein, recently sold a substantial US$1.9m worth of stock at a price of US$40.35 per share. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.

See our latest analysis for Roblox

The Last 12 Months Of Insider Transactions At Roblox

Notably, that recent sale by Manuel Bronstein is the biggest insider sale of Roblox shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$44.16). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 12% of Manuel Bronstein's stake.

Roblox insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Roblox Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Roblox insiders own 12% of the company, worth about US$3.5b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Roblox Tell Us?

Insiders sold Roblox shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Roblox. While conducting our analysis, we found that Roblox has 3 warning signs and it would be unwise to ignore them.

But note: Roblox may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.