Key Points
- Roblox director Andrea Wong sold 562 shares at an average price of $40.89, generating approximately $22,980. She retained 45,265 shares, making the sale a relatively small 1.23% reduction in her holdings.
- Roblox shares opened at $40.44, well below their 50-day and 200-day moving averages of $45.78 and $51.19, respectively. The company remains unprofitable, though its latest quarterly loss of $0.26 per share was better than analysts’ estimate of $0.34.
- The board authorized a $3 billion share-repurchase program, while analysts maintain a consensus “Hold” rating and an average price target of $60.89. Institutional investors own 94.46% of the company.
Roblox Corporation (NYSE:RBLX - Get Free Report) Director Andrea Wong sold 562 shares of the company's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $40.89, for a total transaction of $22,980.18. Following the completion of the sale, the director directly owned 45,265 shares in the company, valued at approximately $1,850,885.85. The trade was a 1.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.
Roblox Stock Down 2.1%
Shares of RBLX opened at $40.44 on Wednesday. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82. Roblox Corporation has a 52 week low of $33.88 and a 52 week high of $142.00. The stock's 50-day moving average price is $45.78 and its 200-day moving average price is $51.19. The company has a market capitalization of $27.09 billion, a price-to-earnings ratio of -28.28 and a beta of 1.47.
Roblox (NYSE:RBLX - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.34) by $0.08. The firm had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.60 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The firm's quarterly revenue was up 8.3% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.41) earnings per share. On average, sell-side analysts predict that Roblox Corporation will post -1.39 EPS for the current year.
Roblox declared that its Board of Directors has authorized a share repurchase program on Tuesday, May 19th that permits the company to repurchase $3.00 billion in shares. This repurchase authorization permits the company to buy up to 9.5% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.
More Roblox News
Here are the key news stories impacting Roblox this week:
- Neutral Sentiment: The European Commission classified Roblox as a “very large online platform” under the Digital Services Act. The designation confirms Roblox’s scale and visibility, but requires compliance with stricter rules involving content moderation, risk assessments, transparency and user protections. The added oversight could increase costs and regulatory risk, although the market initially viewed the classification as recognition of Roblox’s importance. Reuters article
- Negative Sentiment: ARK Invest, associated with Cathie Wood, continued trimming its Roblox position. The persistent fund selling is creating additional supply and weighing on sentiment, particularly because Roblox underperformed broader gaming-related stocks despite no new company-specific negative announcement. 247WallSt article
- Negative Sentiment: Director Andrea L. Wong sold 562 shares at an average price of $40.89, reducing her holdings by 1.23%. The transaction was relatively small—about $22,980—and she retained 45,265 shares, so it is a limited negative signal rather than a major change in insider conviction. SEC insider transaction filing
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently made changes to their positions in the stock. Allspring Global Investments Holdings LLC boosted its stake in Roblox by 379.8% during the first quarter. Allspring Global Investments Holdings LLC now owns 921,424 shares of the company's stock worth $53,102,000 after buying an additional 729,379 shares during the last quarter. PensionDanmark Pensionsforsikringsaktieselskab increased its stake in shares of Roblox by 35.5% in the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 130,130 shares of the company's stock worth $7,076,000 after acquiring an additional 34,120 shares during the last quarter. Glynn Capital Management LLC purchased a new position in shares of Roblox during the 4th quarter worth $5,706,000. Assenagon Asset Management S.A. raised its holdings in shares of Roblox by 89.0% during the 2nd quarter. Assenagon Asset Management S.A. now owns 1,893,790 shares of the company's stock worth $102,984,000 after acquiring an additional 891,634 shares during the period. Finally, Militia Capital Management LLC acquired a new position in shares of Roblox during the 1st quarter valued at about $2,590,000. 94.46% of the stock is currently owned by institutional investors and hedge funds.
Analyst Ratings Changes
RBLX has been the subject of a number of recent analyst reports. Barclays cut their price objective on Roblox from $60.00 to $47.00 and set an "equal weight" rating for the company in a research report on Monday, August 3rd. B. Riley Financial decreased their target price on Roblox from $80.00 to $45.00 and set a "buy" rating on the stock in a research report on Monday, August 3rd. Cantor Fitzgerald started coverage on shares of Roblox in a report on Monday, June 29th. They issued an "overweight" rating for the company. UBS Group set a $33.00 price objective on shares of Roblox in a research report on Friday, July 31st. Finally, Oppenheimer decreased their price objective on shares of Roblox from $82.00 to $50.00 and set an "outperform" rating on the stock in a report on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fifteen have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $60.89.
Read Our Latest Stock Analysis on Roblox
Roblox Company Profile
(
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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