Roblox Corporation $RBLX Shares Sold by Atreides Management LP

Atreides Management LP trimmed its stake in Roblox Corporation (NYSE:RBLX) by 47.1% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 389,571 shares of the company’s stock after selling 347,436 shares during the quarter. Atreides Management LP’s holdings in Roblox were worth $31,567,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Reyes Financial Architecture Inc. grew its holdings in shares of Roblox by 164.4% in the 4th quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock worth $25,000 after acquiring an additional 194 shares during the last quarter. Fideuram Asset Management Ireland dac acquired a new position in shares of Roblox in the 4th quarter worth $27,000. GW&K Investment Management LLC grew its holdings in shares of Roblox by 76.3% in the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock worth $30,000 after acquiring an additional 161 shares during the last quarter. Indiana Trust & Investment Management Co acquired a new position in shares of Roblox in the 4th quarter worth $32,000. Finally, Zions Bancorporation National Association UT acquired a new position in shares of Roblox in the 4th quarter worth $32,000. 94.46% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Roblox news, insider Mark Reinstra sold 5,978 shares of the business’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $41.71, for a total value of $249,342.38. Following the completion of the sale, the insider owned 426,760 shares of the company’s stock, valued at $17,800,159.60. The trade was a 1.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Baszucki sold 50,628 shares of the business’s stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total value of $2,292,435.84. Following the completion of the sale, the chief executive officer directly owned 852,214 shares of the company’s stock, valued at $38,588,249.92. This represents a 5.61% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 189,449 shares of company stock valued at $9,179,410. 10.05% of the stock is owned by corporate insiders.

Roblox News Summary

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox launched new global age-based accounts, including Roblox Kids and Roblox Select, aimed at strengthening protections for users under 16. Investors appear to be viewing the rollout as a constructive step for platform safety and long-term trust. Roblox Kids and Roblox Select Accounts Now Available Worldwide
• Positive Sentiment: Trading activity showed unusually heavy call-option buying, which can signal that some investors are positioning for more upside after the recent pullback and safety-related product announcements.
• Neutral Sentiment: Analysts remain mixed on Roblox, suggesting uncertainty around whether the recent safety initiatives will translate into durable user growth and improved sentiment. Analysts Conflicted on These Communication Services Names: Fox (FOXA) and Roblox (RBLX)
• Negative Sentiment: Multiple law firms are urging investors to join or lead a securities class action against Roblox, extending concerns about alleged disclosures related to age verification and the impact on growth. Bronstein, Gewirtz & Grossman LLC Urges Roblox Corporation Investors to Act: Class Action Filed Alleging Investor Harm
• Negative Sentiment: The stock is also reacting to news that Roblox fell more steeply than the broader market, reinforcing the current weakness in investor sentiment. Roblox (RBLX) Falls More Steeply Than Broader Market: What Investors Need to Know

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the company. TD Cowen upgraded Roblox from a “sell” rating to a “hold” rating and decreased their target price for the stock from $54.00 to $49.00 in a report on Friday, May 1st. Raymond James Financial cut Roblox from an “outperform” rating to a “market perform” rating in a research report on Friday, May 1st. Barclays decreased their target price on Roblox from $115.00 to $60.00 and set an “equal weight” rating for the company in a research report on Friday, May 1st. Roth Mkm set a $65.00 target price on Roblox in a research report on Tuesday, May 5th. Finally, Morgan Stanley reaffirmed an “overweight” rating and issued a $62.00 target price on shares of Roblox in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $87.07.

Roblox Price Performance

RBLX opened at $47.88 on Thursday. Roblox Corporation has a 1 year low of $40.15 and a 1 year high of $150.59. The stock has a fifty day moving average price of $49.38 and a 200 day moving average price of $64.44. The stock has a market cap of $32.15 billion, a price-to-earnings ratio of -30.30 and a beta of 1.44. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.06. Roblox had a negative return on equity of 277.69% and a negative net margin of 20.69%.The company had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.74 billion. During the same quarter in the previous year, the firm earned ($0.32) earnings per share. The business’s quarterly revenue was up 43.4% compared to the same quarter last year. Analysts forecast that Roblox Corporation will post -1.4 EPS for the current fiscal year.

Roblox announced that its Board of Directors has authorized a share repurchase program on Tuesday, May 19th that authorizes the company to repurchase $3.00 billion in shares. This repurchase authorization authorizes the company to buy up to 9.5% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

About Roblox

Roblox Corporation operates Roblox, a user-generated online platform that enables people to create, share and monetize immersive 3D experiences and games. The core offering centers on Roblox Studio, a development environment that allows independent creators and studios to design interactive worlds using the company’s building tools and scripting language. Content on the platform spans games, virtual hangouts, branded experiences and live events, all delivered through a persistent social environment.

Roblox’s business model is built around its virtual economy and creator ecosystem.