Key Points
- Roblox insider Mark Reinstra sold 17,275 shares on May 20 at an average price of $45.28, totaling about $782,212. The sale was made under a pre-arranged 10b5-1 plan and was tied to tax withholding from vesting equity awards.
- The company also announced a $3 billion share buyback program on May 19, authorizing repurchases of up to 9.5% of outstanding shares. Such programs often signal management believes the stock may be undervalued.
- Roblox’s latest earnings showed mixed results: EPS of -$0.35 beat estimates, but revenue of $1.44 billion came in below expectations. Analysts remain cautious overall, with MarketBeat showing an average rating of “Hold” and an average price target of $87.07.
Roblox Corporation (NYSE:RBLX - Get Free Report) CAO Amy Marie Rawlings sold 2,895 shares of the company's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $45.24, for a total value of $130,969.80. Following the sale, the chief accounting officer owned 35,238 shares of the company's stock, valued at $1,594,167.12. The trade was a 7.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
Roblox Stock Up 4.5%
NYSE RBLX opened at $48.23 on Friday. The business has a fifty day moving average price of $53.56 and a two-hundred day moving average price of $71.53. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89. Roblox Corporation has a fifty-two week low of $40.15 and a fifty-two week high of $150.59. The stock has a market capitalization of $32.39 billion, a PE ratio of -30.53 and a beta of 1.50.
Roblox (NYSE:RBLX - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share for the quarter, topping the consensus estimate 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 firm had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.74 billion. During the same period in the prior year, the company earned ($0.32) earnings per share. The company's quarterly revenue was up 43.4% on a year-over-year basis. Equities analysts expect that Roblox Corporation will post -1.4 earnings per share for the current fiscal year.
Roblox announced that its board has authorized a stock repurchase program on Tuesday, May 19th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the company to repurchase up to 9.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board of directors believes its shares are undervalued.
Analyst Ratings Changes
Several equities research analysts have weighed in on the company. Wells Fargo & Company cut their target price on Roblox from $97.00 to $78.00 and set an "overweight" rating for the company in a research note on Monday, April 6th. BTIG Research cut Roblox from a "buy" rating to a "neutral" rating in a research note on Friday, May 1st. Barclays lowered their price target on shares of Roblox from $115.00 to $60.00 and set an "equal weight" rating for the company in a report on Friday, May 1st. Bank of America downgraded shares of Roblox from a "buy" rating to a "neutral" rating and set a $48.00 price target for the company. in a report on Friday, May 1st. Finally, Jefferies Financial Group downgraded shares of Roblox from a "hold" rating to a "hold" rating in a report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $87.07.
Get Our Latest Stock Report on RBLX
Institutional Inflows and Outflows
Institutional investors have recently modified their holdings of the stock. Reyes Financial Architecture Inc. increased its holdings in shares of Roblox by 164.4% during the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company's stock worth $25,000 after buying an additional 194 shares in the last quarter. Hanson & Doremus Investment Management acquired a new position in shares of Roblox during the first quarter worth $25,000. Pilgrim Partners Asia Pte Ltd acquired a new position in shares of Roblox during the third quarter worth $26,000. Fideuram Asset Management Ireland dac acquired a new stake in Roblox in the fourth quarter valued at $27,000. Finally, GW&K Investment Management LLC increased its holdings in Roblox by 76.3% in the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company's stock valued at $30,000 after purchasing an additional 161 shares during the period. 94.46% of the stock is currently owned by institutional investors and hedge funds.
Key Roblox News
Here are the key news stories impacting Roblox this week:
- Positive Sentiment: One recent bullish view argues Roblox is evolving into an AI-enabled entertainment platform, with creator tools helping boost content production and user engagement, which could support long-term bookings and monetization. Roblox: The Scarce Entertainment Asset In An AI-Abundant World
- Neutral Sentiment: Analysts and commentators also noted that Roblox remains a debated story, with some saying the investment case depends on assumptions that may be hard to prove near term. Roblox: Investment Case Relies On Unreliable Assumptions
- Negative Sentiment: CEO David Baszucki sold 50,628 shares, CFO Naveen K. Chopra sold 16,863 shares, and several other insiders also sold shares in filings dated May 20–21. While the company said these were largely to cover tax withholding from vesting awards, the cluster of sales can still weigh on sentiment.
- Negative Sentiment: Additional commentary flagged near-term growth headwinds from age verification and moderation-related changes, which have softened DAU, engagement, and bookings trends even as Roblox works on new kids’ accounts and broader 18+ monetization. Roblox: Reset Triggers Robust 18+ Cohort Monetization Opportunities
About Roblox
(
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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.
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