We wouldn't blame Roblox Corporation (NYSE:RBLX) shareholders if they were a little worried about the fact that David Baszucki, the Founder recently netted about US$2.0m selling shares at an average price of US$37.96. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.3%.

Roblox Insider Transactions Over The Last Year

The Chief Legal Officer & Corporate Secretary, Mark Reinstra, made the biggest insider sale in the last 12 months. That single transaction was for US$3.8m worth of shares at a price of US$63.94 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$39.12. So it may not shed much light on insider confidence at current levels.

Roblox insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Roblox insiders own about US$2.7b worth of shares (which is 9.9% of the company). 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 haven't bought Roblox stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Roblox. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Roblox.

Of course Roblox may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

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.