Roblox (NYSE:RBLX) Trading Down 6% on Insider Selling

Roblox Corporation (NYSE:RBLX)’s stock price was down 6% on Tuesday following insider selling activity. The company traded as low as $76.21 and last traded at $76.2040. Approximately 1,327,520 shares changed hands during mid-day trading, a decline of 75% from the average daily volume of 5,349,941 shares. The stock had previously closed at $81.04.

Specifically, Director Anthony P. Lee sold 59,000 shares of Roblox stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $79.96, for a total transaction of $4,717,640.00. Following the completion of the transaction, the director owned 257,258 shares in the company, valued at approximately $20,570,349.68. The trade was a 18.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on RBLX shares. Cowen reiterated a “sell” rating on shares of Roblox in a research note on Tuesday. Oppenheimer restated an “outperform” rating and set a $150.00 price objective on shares of Roblox in a research note on Friday, October 31st. UBS Group set a $99.00 target price on Roblox in a research report on Tuesday, December 9th. Citigroup lifted their price objective on shares of Roblox from $152.00 to $155.00 and gave the stock a “buy” rating in a report on Wednesday, October 8th. Finally, The Goldman Sachs Group raised shares of Roblox from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $155.00 to $180.00 in a research report on Friday, October 31st. Eighteen investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $133.96.

Key Headlines Impacting Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox is requiring users worldwide to complete age‑checks to access chat — a move that reduces regulatory and brand risk, may improve parental trust and could support ad/partner demand over time. Roblox Requires Users Worldwide to Age-Check to Access Chat
• Positive Sentiment: Technical coverage flagged Roblox as re‑entering bullish chart patterns, which can attract momentum and technical traders. Former Stock Picks Re-Enter the Technical Spotlight
• Positive Sentiment: Third‑party ecosystem activity: Super League acquired a stake in a top Roblox game (“Hide or Die!”), which highlights continued commercial interest in high‑engagement Roblox titles and could drive partnership/marketing dollars back into the platform. Super League Acquires Stake in Top 100 Roblox Game: Hide or Die!
• Neutral Sentiment: Zacks and other outlets published stock‑research/forecast pieces (including Earnings ESP coverage) that may help some investors evaluate near‑term earnings upside vs. risk, but contain no major new company developments. Why Investors Need to Take Advantage of These 2 Consumer Discretionary Stocks Now
• Negative Sentiment: Analyst pressure: Wolfe Research cut its price target (reported lowering to $100 from $150) and TD Cowen trimmed targets citing growth concerns — analyst downgrades are a key driver of recent selling. Roblox price target lowered to $100 from $150 at Wolfe Research Roblox stock falls after TD Cowen cuts price target on growth concerns
• Negative Sentiment: Recent price action and commentary: coverage noting a ~23% drop over the past month and headlines about 8‑month lows have amplified selling momentum and investor caution. Roblox Stock Is Falling – Buy Or Wait? Roblox shares hit 8-month low—what’s behind the move?
• Negative Sentiment: Insider selling: Director Anthony Lee disclosed a sale of 59,000 shares, which investors often view as a negative signal when combined with analyst cuts and weak price momentum. Anthony Lee Sells 59,000 Shares of Roblox

Roblox Trading Up 0.9%

The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 2.54. The firm has a 50-day moving average price of $92.60 and a 200-day moving average price of $113.13. The company has a market capitalization of $50.08 billion, a price-to-earnings ratio of -53.48 and a beta of 1.64.

Roblox (NYSE:RBLX) last announced its earnings results on Thursday, October 30th. The company reported ($0.37) earnings per share for the quarter, beating the consensus estimate of ($0.44) by $0.07. Roblox had a negative return on equity of 314.20% and a negative net margin of 21.70%.The business had revenue of $1.36 billion during the quarter, compared to analysts’ expectations of $1.64 billion. During the same quarter last year, the business posted ($0.37) earnings per share. The company’s quarterly revenue was up 70.3% on a year-over-year basis. As a group, sell-side analysts predict that Roblox Corporation will post -1.49 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in RBLX. Pilgrim Partners Asia Pte Ltd purchased a new stake in shares of Roblox during the third quarter valued at $26,000. Whittier Trust Co. of Nevada Inc. acquired a new stake in Roblox during the 3rd quarter worth about $37,000. Total Investment Management Inc. purchased a new stake in Roblox during the second quarter valued at about $29,000. Root Financial Partners LLC acquired a new position in shares of Roblox in the third quarter worth about $38,000. Finally, Sunbelt Securities Inc. increased its position in shares of Roblox by 58.7% in the third quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock worth $39,000 after acquiring an additional 105 shares in the last quarter. Institutional investors and hedge funds own 94.46% of the company’s stock.

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.