Key Points
- Roblox director Gregory Baszucki sold 16,666 shares for approximately $624,000 at an average price of $37.46 under a pre-arranged Rule 10b5-1 plan. He retained 1.27 million shares, so the sale reduced his direct holdings by 1.3%.
- Roblox shares opened at $36.17, down 2.3%, following quarterly results that beat EPS expectations but missed revenue estimates. Revenue rose 8.3% year over year to $1.47 billion, while the company remained unprofitable.
- Analyst sentiment is mixed, with a consensus “Hold” rating and a $60.89 target price; several firms recently lowered their targets or ratings. Roblox has also authorized a $3 billion share repurchase program, covering up to 9.5% of outstanding shares.
Roblox Corporation (NYSE:RBLX - Get Free Report) Director Gregory Baszucki sold 16,666 shares of the firm's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $37.46, for a total value of $624,308.36. Following the completion of the transaction, the director directly owned 1,269,502 shares in the company, valued at $47,555,544.92. This trade represents a 1.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Gregory Baszucki also recently made the following trade(s):
- On Wednesday, July 1st, Gregory Baszucki sold 16,666 shares of Roblox stock. The shares were sold at an average price of $57.69, for a total value of $961,461.54.
Roblox Trading Down 2.3%
Shares of NYSE:RBLX opened at $36.17 on Thursday. The stock has a 50 day moving average of $48.68 and a 200 day moving average of $55.79. The company has a market cap of $24.23 billion, a PE ratio of -25.29 and a beta of 1.46. Roblox Corporation has a 12-month low of $33.88 and a 12-month high of $142.00. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 7.82.
Roblox (NYSE:RBLX - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, topping analysts' consensus estimates of ($0.34) by $0.08. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The company had revenue of $1.47 billion for the quarter, compared to analysts' expectations of $1.60 billion. During the same quarter last year, the business earned ($0.41) EPS. The firm's revenue was up 8.3% compared to the same quarter last year. As a group, equities research analysts expect that Roblox Corporation will post -1.38 EPS for the current year.
Roblox announced that its Board of Directors has initiated a share buyback program on Tuesday, May 19th that permits the company to repurchase $3.00 billion in shares. This repurchase authorization permits the company to repurchase up to 9.5% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's board of directors believes its stock is undervalued.
Analyst Ratings Changes
Several brokerages recently weighed in on RBLX. Canaccord Genuity Group set a $58.00 target price on shares of Roblox in a report on Friday, July 31st. Piper Sandler reissued a "neutral" rating and set a $47.00 price target (down from $50.00) on shares of Roblox in a report on Friday, July 31st. TD Cowen lowered their price objective on Roblox from $49.00 to $40.00 and set a "hold" rating on the stock in a research report on Friday, July 31st. Benchmark lowered Roblox from a "hold" rating to a "sell" rating and set a $33.00 price objective for the company. in a research note on Friday, July 31st. Finally, Jefferies Financial Group cut Roblox from a "hold" rating to a "hold" rating in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fifteen have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $60.89.
Read Our Latest Report on Roblox
Trending Headlines about Roblox
Here are the key news stories impacting Roblox this week:
- Positive Sentiment: Despite the post-earnings decline, some analysts see substantial long-term upside, citing Roblox’s growing user base and the possibility that current pessimism already reflects much of the near-term risk. Roblox: Visibility Has Collapsed And That Is Exactly Why I Am Buying
- Positive Sentiment: Roblox beat quarterly EPS expectations, although revenue fell short of consensus; this provides a limited positive offset to concerns about the company’s outlook.
- Neutral Sentiment: Director Gregory Baszucki sold 16,666 shares for approximately $624,000 under a pre-arranged Rule 10b5-1 trading plan. The transaction reduced his direct holdings by 1.3%, but the planned nature of the sale and his remaining substantial ownership reduce its significance as a bearish signal. SEC Form 4 filing
- Neutral Sentiment: Market commentary remains divided: some investors view the selloff as a buying opportunity, while others question whether the company’s growth and monetization can reaccelerate.
- Negative Sentiment: Citigroup and B. Riley Financial lowered their expectations for Roblox’s stock, adding pressure after the earnings-related selloff. Citigroup forecast B. Riley forecast
- Negative Sentiment: Analysts and financial media highlighted troubling signals in Roblox’s post-earnings outlook, including reduced visibility and concerns that revenue growth is not keeping pace with expectations. Deutsche Bank downgrade coverage
- Negative Sentiment: Several law firms are promoting securities class-action claims tied to Roblox’s October 2024–April 2026 trading period, with an August 7 lead-plaintiff deadline. The notices increase headline and potential legal-risk concerns, although they do not establish wrongdoing. Faruqi class-action deadline notice
Institutional Trading of Roblox
Several hedge funds have recently bought and sold shares of RBLX. Sunbelt Securities Inc. boosted its holdings in shares of Roblox by 58.7% during the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock valued at $39,000 after purchasing an additional 105 shares during the last quarter. Horizon Investments LLC increased its holdings in shares of Roblox by 2,636.4% in the third quarter. Horizon Investments LLC now owns 301 shares of the company's stock worth $42,000 after purchasing an additional 290 shares during the last quarter. Reyes Financial Architecture Inc. increased its holdings in shares of Roblox by 164.4% in the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company's stock worth $25,000 after purchasing an additional 194 shares during the last quarter. Fideuram Asset Management Ireland dac bought a new position in Roblox during the fourth quarter valued at approximately $27,000. Finally, GW&K Investment Management LLC boosted its stake in Roblox by 76.3% during the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company's stock valued at $30,000 after buying an additional 161 shares during the last quarter. Hedge funds and other institutional investors own 94.46% of the company's stock.
About Roblox
(
Get Free Report)
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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