Roblox (NYSE:RBLX) Trading Down 10.1% on Insider Selling

Roblox Corporation (NYSE:RBLX)’s stock price fell 10.1% during mid-day trading on Thursday after an insider sold shares in the company. The stock traded as low as $62.87 and last traded at $62.0490. 4,123,467 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 14,345,558 shares. The stock had previously closed at $68.99.

Specifically, insider Matthew D. Kaufman sold 30,034 shares of the business’s stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $72.65, for a total value of $2,181,970.10. Following the completion of the transaction, the insider owned 307,263 shares of the company’s stock, valued at $22,322,656.95. The trade was a 8.90% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO David Baszucki sold 272,269 shares of the firm’s stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $72.66, for a total transaction of $19,783,065.54. Following the sale, the chief executive officer owned 811,373 shares in the company, valued at approximately $58,954,362.18. This trade represents a 25.13% decrease in their position. The SEC filing for this sale provides additional information. In related news, insider Arvind Chakravarthy sold 40,646 shares of the company’s stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $67.23, for a total value of $2,732,630.58. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

Analyst Ratings Changes

Several equities research analysts have issued reports on the company. UBS Group set a $74.00 price target on Roblox in a research note on Friday, February 6th. Roth Mkm upgraded Roblox from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $78.00 to $84.00 in a research report on Monday. BMO Capital Markets reaffirmed an “outperform” rating on shares of Roblox in a research note on Friday, February 6th. The Goldman Sachs Group reduced their price target on shares of Roblox from $180.00 to $140.00 and set a “buy” rating on the stock in a research report on Friday, February 6th. Finally, Benchmark restated a “hold” rating on shares of Roblox in a report on Monday, February 2nd. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $119.44.

More Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roth Capital upgraded RBLX to a “Buy”, which can boost short-term sentiment and provide analyst support for a rebound. Roth Capital upgrades Roblox (RBLX) to buy
• Neutral Sentiment: Market write-ups and explainers contextualize the selloff (valuation, mixed earnings vs. estimates) but don’t add a new catalyst. Useful background for positioning. Why Roblox Corporation’s (RBLX) Stock Is Down 5.99%
• Negative Sentiment: Regulatory child-safety probes (Australia and testing of compliance) raise near-term legal, reputational and user-growth risks — this can pressure valuation and advertiser/partner confidence. Regulatory Child Safety Probes Put Roblox Valuation And Growth Under Question
• Negative Sentiment: Clustered insider selling: multiple executives (including CEO David Baszucki and other senior insiders) sold large blocks in early Feb., representing multi‑million-dollar disposals — investors often view concentrated insider sales as a negative signal. Roblox Insiders Sell US$45m Of Stock, Possibly Signalling Caution

Roblox Price Performance

The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 2.65. The firm’s fifty day moving average price is $78.57 and its 200-day moving average price is $106.11. The stock has a market cap of $41.74 billion, a P/E ratio of -40.70 and a beta of 1.63.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, February 5th. The company reported ($0.45) earnings per share for the quarter, beating the consensus estimate of ($0.49) by $0.04. The business had revenue of $1.42 billion during the quarter, compared to analysts’ expectations of $2.08 billion. Roblox had a negative net margin of 21.78% and a negative return on equity of 304.42%. The firm’s revenue for the quarter was up 122.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.33) EPS. Analysts forecast that Roblox Corporation will post -1.49 earnings per share for the current year.

Institutional Trading of Roblox

Several large investors have recently modified their holdings of the business. NewEdge Advisors LLC raised its position in Roblox by 2.3% during the 1st quarter. NewEdge Advisors LLC now owns 10,236 shares of the company’s stock valued at $597,000 after purchasing an additional 231 shares during the last quarter. Sivia Capital Partners LLC increased its stake in shares of Roblox by 70.2% during the second quarter. Sivia Capital Partners LLC now owns 13,000 shares of the company’s stock valued at $1,368,000 after buying an additional 5,363 shares during the period. Apollon Wealth Management LLC bought a new position in shares of Roblox during the second quarter valued at approximately $469,000. Yousif Capital Management LLC lifted its stake in Roblox by 1.9% in the second quarter. Yousif Capital Management LLC now owns 6,925 shares of the company’s stock worth $729,000 after acquiring an additional 127 shares during the period. Finally, Sequoia Financial Advisors LLC boosted its holdings in Roblox by 27.6% in the second quarter. Sequoia Financial Advisors LLC now owns 6,571 shares of the company’s stock valued at $691,000 after acquiring an additional 1,423 shares in the last quarter. 94.46% of the stock is owned by institutional investors.

Roblox Company Profile

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.