Roblox Corporation $RBLX Holdings Reduced by 12 West Capital Management LP

12 West Capital Management LP cut its holdings in Roblox Corporation (NYSE:RBLX) by 1.4% during the fourth quarter, Holdings Channel reports. The firm owned 1,050,000 shares of the company’s stock after selling 15,000 shares during the quarter. Roblox makes up 10.1% of 12 West Capital Management LP’s portfolio, making the stock its 3rd biggest holding. 12 West Capital Management LP’s holdings in Roblox were worth $85,082,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. NewEdge Advisors LLC increased its position in shares of 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 position in shares of Roblox by 70.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 13,000 shares of the company’s stock valued at $1,368,000 after purchasing an additional 5,363 shares during the last quarter. CW Advisors LLC bought a new position in shares of Roblox during the 2nd quarter valued at approximately $272,000. Baird Financial Group Inc. increased its position in shares of Roblox by 1.4% during the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock valued at $767,000 after purchasing an additional 102 shares during the last quarter. Finally, WINTON GROUP Ltd purchased a new stake in Roblox in the second quarter worth $438,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Roblox

In related news, CEO David Baszucki sold 50,628 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total transaction of $2,292,435.84. Following the sale, the chief executive officer owned 852,214 shares of the company’s stock, valued at $38,588,249.92. This trade represents a 5.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark Reinstra sold 5,978 shares of the firm’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $41.71, for a total value of $249,342.38. Following the sale, the insider directly owned 426,760 shares in the company, valued at approximately $17,800,159.60. The trade was a 1.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 189,449 shares of company stock valued at $9,179,410 over the last 90 days. Company insiders own 10.05% of the company’s stock.

Key Headlines Impacting Roblox

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

Analyst Upgrades and Downgrades

A number of research firms have weighed in on RBLX. The Goldman Sachs Group reduced their target price on Roblox from $125.00 to $65.00 and set a “buy” rating on the stock in a research note on Friday, May 1st. TD Cowen upgraded Roblox from a “sell” rating to a “hold” rating and reduced their target price for the stock from $54.00 to $49.00 in a research note on Friday, May 1st. Wells Fargo & Company reduced their target price on Roblox from $97.00 to $78.00 and set an “overweight” rating on the stock in a research note on Monday, April 6th. Wedbush lowered Roblox from a “hold” rating to a “neutral” rating in a research note on Friday, May 1st. Finally, Raymond James Financial lowered Roblox from an “outperform” rating to a “market perform” rating in a research note on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $87.07.

Roblox Stock Performance

Shares of Roblox stock opened at $47.88 on Thursday. The firm has a market cap of $32.15 billion, a P/E 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 Corporation has a 12 month low of $40.15 and a 12 month high of $150.59. The stock’s fifty day moving average price is $49.38 and its 200-day moving average price is $64.44.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, beating the consensus estimate of ($0.41) by $0.06. The firm had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.74 billion. Roblox had a negative return on equity of 277.69% and a negative net margin of 20.69%.The business’s revenue for the quarter was up 43.4% on a year-over-year basis. During the same quarter last year, the firm posted ($0.32) earnings per share. On average, equities research analysts expect that Roblox Corporation will post -1.4 earnings per share for the current fiscal year.

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

Roblox 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.