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

Roblox Corporation (NYSE:RBLX)’s stock price traded down 10.1% on Thursday following insider selling activity. The stock traded as low as $62.87 and last traded at $62.0490. 4,123,467 shares were traded during trading, a decline of 71% from the average session 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 firm’s stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $72.65, for a total transaction of $2,181,970.10. Following the transaction, the insider owned 307,263 shares in the company, valued at approximately $22,322,656.95. This trade represents a 8.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO David Baszucki sold 272,269 shares of Roblox stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $72.66, for a total value of $19,783,065.54. Following the completion of the transaction, the chief executive officer owned 811,373 shares in the company, valued at $58,954,362.18. The trade was a 25.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In related news, insider Arvind Chakravarthy sold 40,646 shares of the firm’s stock in a transaction 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 legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on RBLX. BMO Capital Markets reaffirmed an “outperform” rating on shares of Roblox in a report on Friday, February 6th. BTIG Research restated a “buy” rating and set a $141.00 target price on shares of Roblox in a report on Friday, February 6th. Benchmark reiterated a “hold” rating on shares of Roblox in a research report on Monday, February 2nd. Wells Fargo & Company set a $97.00 target price on Roblox in a research report on Monday. Finally, Piper Sandler reiterated an “overweight” rating and set a $100.00 price target (down previously from $125.00) on shares of Roblox in a research report on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $119.44.

Key Stories Impacting Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Analyst upgrade and growth forecast triggered a short-term rally (about a 10% intraday pop on Feb. 10), showing there is still buy-side conviction on Roblox’s long-term growth and creator-economy potential. Read More.
• Neutral Sentiment: Roblox published safety initiatives for Safer Internet Day — good for long-term trust and retention but unlikely to deliver immediate revenue upside. Read More.
• Neutral Sentiment: Longer-term bullish scenarios are being debated (e.g., whether RBLX can reach ~$150 by 2030); these are speculative and matter more to long-horizon investors than to near-term price action. Read More.
• Negative Sentiment: Significant, clustered insider selling: CEO David Baszucki sold ~272k shares (~25% reduction in his reported direct stake) and several other senior insiders sold large blocks across Feb. 10–11. The size and concentration of these sales is being read negatively by the market and likely added downward pressure. Read More. · Read More.
• Negative Sentiment: Regulatory/reputational risk: Australia has asked to meet with Roblox over complaints about grooming and graphic content, signaling potential regulatory scrutiny and compliance costs that can hurt user trust and monetization. Read More.
• Negative Sentiment: Round-up analysis explaining the latest pullback (insider selling, regulatory headlines, mixed post-earnings read) — useful for investors wanting a consolidated view of why shares are down. Read More.

Roblox Trading Down 8.4%

The stock’s 50 day moving average is $79.24 and its 200-day moving average is $106.51. 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 market capitalization of $41.40 billion, a P/E ratio of -40.79 and a beta of 1.63.

Roblox (NYSE:RBLX) last announced its earnings results on Thursday, February 5th. The company reported ($0.45) EPS for the quarter, beating analysts’ consensus estimates of ($0.49) by $0.04. Roblox had a negative net margin of 21.78% and a negative return on equity of 311.88%. The firm had revenue of $1.42 billion for the quarter, compared to analysts’ expectations of $2.08 billion. During the same quarter in the previous year, the business posted ($0.33) EPS. The company’s quarterly revenue was up 122.6% on a year-over-year basis. As a group, equities research analysts anticipate that Roblox Corporation will post -1.49 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of RBLX. Reyes Financial Architecture Inc. increased its stake 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 in the last quarter. Pilgrim Partners Asia Pte Ltd purchased a new position in Roblox during the 3rd quarter valued at $26,000. Fideuram Asset Management Ireland dac purchased a new stake in Roblox in the 4th quarter valued at about $27,000. Total Investment Management Inc. bought a new position in Roblox in the 2nd quarter worth about $29,000. Finally, GW&K Investment Management LLC boosted its holdings in shares of 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 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.