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

Roblox Corporation (NYSE:RBLX) shares were down 10.1% during mid-day trading on Thursday following insider selling activity. The company traded as low as $62.87 and last traded at $62.0490. Approximately 4,123,467 shares changed hands during trading, a decline of 71% from the average daily 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 on Tuesday, February 10th. The stock was sold at an average price of $72.65, for a total value of $2,181,970.10. Following the sale, the insider directly owned 307,263 shares in the company, valued at $22,322,656.95. The trade was a 8.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO David Baszucki sold 272,269 shares of the company’s stock in a transaction dated 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 of the company’s stock, valued at approximately $58,954,362.18. The trade was a 25.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In other news, insider Arvind Chakravarthy sold 40,646 shares of the stock in a transaction that occurred on Wednesday, February 11th. The stock was 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 is available at this link.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Deutsche Bank Aktiengesellschaft set a $115.00 price objective on Roblox in a research note on Tuesday, January 20th. Citigroup reduced their target price on shares of Roblox from $152.00 to $119.00 and set a “buy” rating for the company in a report on Friday, February 6th. Roth Mkm raised shares of Roblox from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $78.00 to $84.00 in a research note on Monday. JPMorgan Chase & Co. lowered their target price on shares of Roblox from $100.00 to $75.00 and set a “neutral” rating on the stock in a research note on Friday, February 6th. Finally, Wedbush reissued an “outperform” rating and issued a $110.00 price target on shares of Roblox in a research note on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Roblox has a consensus rating of “Moderate Buy” and a consensus target price of $119.44.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Analyst upgrade and bullish growth forecast triggered a short-term rally (about a 10% move earlier in the week), showing investor sensitivity to upgrade-driven momentum. Roblox Stock Climbs 10% on Analyst Upgrade
• Neutral Sentiment: Longer-term bull-case pieces and valuation debates are circulating (e.g., whether RBLX can reach $150 by 2030); useful for narrative but not an immediate catalyst. Will Roblox Stock Hit $150 by 2030?
• Neutral Sentiment: Company announced expanded safety partnerships for Safer Internet Day — positive for trust/reputation but unlikely to drive near-term revenue. Roblox Marks Safer Internet Day With Expanded Safety Partnerships
• Negative Sentiment: Clustered insider selling — CEO David Baszucki sold ~272k shares (~25% reduction in his direct stake) and multiple senior insiders (including Matthew Kaufman, Arvind Chakravarthy, Mark Reinstra) sold large blocks across Feb. 10–11. Large, concentrated insider sales are often read negatively by the market and likely contributed to the pullback. Insider Matthew Kaufman Sells 30,034 Shares
• Negative Sentiment: Recent quarterly results showed an EPS beat but a large revenue miss versus consensus and a still-negative margin profile — investors remain focused on monetization and margin improvement timelines. Analyst price-target cuts and mixed ratings (JPMorgan, Needham, Barclays, etc.) add downside pressure. Roblox Earnings and Analyst Notes
• Negative Sentiment: Regulatory/reputational risk: Australia has sought meetings with Roblox over reported grooming/graphic content and will test compliance with child-safety commitments — near-term regulatory scrutiny can weigh on user growth, engagement and monetization. Australia Asks for Meeting With Roblox

Roblox Price Performance

The stock has a market capitalization of $40.89 billion, a PE ratio of -40.26 and a beta of 1.63. The company has a debt-to-equity ratio of 2.54, a current ratio of 0.96 and a quick ratio of 0.96. The company has a 50-day moving average of $79.88 and a two-hundred day moving average of $106.81.

Roblox (NYSE:RBLX) last issued its earnings results on Thursday, February 5th. The company reported ($0.45) earnings per share for the quarter, topping the consensus estimate of ($0.49) by $0.04. Roblox had a negative return on equity of 311.88% and a negative net margin of 21.78%.The company had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $2.08 billion. During the same quarter in the prior year, the business earned ($0.33) earnings per share. The company’s revenue was up 122.6% compared to the same quarter last year. Sell-side analysts predict that Roblox Corporation will post -1.49 EPS for the current fiscal year.

Institutional Investors Weigh In On Roblox

A number of hedge funds have recently added to or reduced their stakes in the stock. Reyes Financial Architecture Inc. increased its holdings in shares of Roblox by 164.4% in the 4th quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock worth $25,000 after acquiring an additional 194 shares during the period. Pilgrim Partners Asia Pte Ltd bought a new position in Roblox in the 3rd quarter worth about $26,000. Fideuram Asset Management Ireland dac bought a new stake in shares of Roblox during the fourth quarter valued at approximately $27,000. Total Investment Management Inc. acquired a new position in shares of Roblox during the second quarter worth approximately $29,000. Finally, GW&K Investment Management LLC boosted its position in shares of Roblox by 76.3% during the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock worth $30,000 after buying an additional 161 shares during the period. 94.46% of the stock is currently 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.