Roblox Corporation $RBLX Stock Position Reduced by Atreides Management LP

Atreides Management LP lessened its position in shares of Roblox Corporation (NYSE:RBLX) by 47.1% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 389,571 shares of the company’s stock after selling 347,436 shares during the period. Atreides Management LP owned about 0.06% of Roblox worth $31,567,000 as of its most recent SEC filing.

Other large investors also recently bought and sold shares of the company. Cypress Wealth Services LLC bought a new stake in shares of Roblox in the 4th quarter worth approximately $2,373,000. Yarbrough Capital LLC lifted its holdings in shares of Roblox by 1,514.5% in the 4th quarter. Yarbrough Capital LLC now owns 57,331 shares of the company’s stock worth $4,646,000 after purchasing an additional 53,780 shares during the last quarter. Glynn Capital Management LLC bought a new stake in shares of Roblox in the 4th quarter worth approximately $5,706,000. Norges Bank bought a new stake in shares of Roblox in the 4th quarter worth approximately $435,424,000. Finally, Steadview Capital Management LLC bought a new stake in shares of Roblox in the 4th quarter worth approximately $12,884,000. Institutional investors own 94.46% of the company’s stock.

Insider Activity at Roblox

In other news, Director Gregory Baszucki sold 16,666 shares of Roblox stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $57.95, for a total transaction of $965,794.70. Following the transaction, the director directly owned 1,302,834 shares in the company, valued at approximately $75,499,230.30. This trade represents a 1.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Baszucki sold 50,628 shares of Roblox stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $45.28, for a total value of $2,292,435.84. Following the transaction, the chief executive officer owned 852,214 shares in the company, valued at approximately $38,588,249.92. This trade represents a 5.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 189,449 shares of company stock worth $9,179,410 in the last quarter. Company insiders own 10.05% of the company’s stock.

Analyst Ratings Changes

Several analysts recently issued reports on the company. BTIG Research downgraded Roblox from a “buy” rating to a “neutral” rating in a report on Friday, May 1st. Barclays cut their target price on Roblox from $115.00 to $60.00 and set an “equal weight” rating on the stock in a research note on Friday, May 1st. HSBC downgraded Roblox from a “buy” rating to a “hold” rating and set a $46.00 target price on the stock. in a research note on Friday, May 1st. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Roblox in a research note on Friday, March 27th. Finally, Wolfe Research initiated coverage on Roblox in a research note on Friday, May 1st. They set an “outperform” rating on the stock. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Roblox has a consensus rating of “Hold” and an average price target of $87.07.

Roblox News Roundup

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

Roblox Stock Down 3.0%

Shares of RBLX stock opened at $47.88 on Thursday. Roblox Corporation has a 1 year low of $40.15 and a 1 year high of $150.59. The stock has a market cap of $32.15 billion, a PE ratio of -30.30 and a beta of 1.44. The business’s fifty day moving average is $49.38 and its 200-day moving average is $64.44. The company has a debt-to-equity ratio of 2.45, a quick ratio of 0.89 and a current ratio of 0.89.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating 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 company had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.74 billion. During the same period last year, the firm earned ($0.32) EPS. The firm’s revenue for the quarter 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 declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, May 19th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the company to purchase up to 9.5% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board 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.