Bank of America Corp DE Decreases Stock Holdings in Roblox Corporation $RBLX

Key Points

• Bank of America cut its Roblox position by 28.8% in the first quarter, selling 952,539 shares and retaining 2.35 million shares valued at approximately $133.1 million. Institutional investors and hedge funds own 94.46% of the company.
• Roblox reported a narrower-than-expected quarterly loss of $0.26 per share, but revenue of $1.47 billion fell short of the $1.60 billion consensus estimate; revenue still increased 8.3% year over year.
• The stock opened at $36.11, well below its 50-day and 200-day moving averages, while analysts broadly maintain a “Hold” consensus. Roblox authorized a $3 billion share-repurchase program, equivalent to up to 9.5% of outstanding shares.

Bank of America Corp DE trimmed its position in Roblox Corporation (NYSE:RBLX - Free Report) by 28.8% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 2,353,704 shares of the company's stock after selling 952,539 shares during the period. Bank of America Corp DE owned approximately 0.35% of Roblox worth $133,125,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds also recently added to or reduced their stakes in the company. Sunbelt Securities Inc. raised its position in shares of Roblox by 58.7% in 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 raised 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 buying an additional 290 shares during the last quarter. Reyes Financial Architecture Inc. lifted its stake in shares of Roblox by 164.4% during the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company's stock worth $25,000 after buying an additional 194 shares during the period. Fideuram Asset Management Ireland dac purchased a new stake in shares of Roblox during the fourth quarter valued at $27,000. Finally, GW&K Investment Management LLC increased its position in shares of Roblox by 76.3% in the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company's stock valued at $30,000 after acquiring an additional 161 shares during the period. 94.46% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, insider Sean Jack Buckley sold 4,744 shares of the business's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $46.36, for a total value of $219,931.84. Following the sale, the insider directly owned 97,141 shares in the company, valued at approximately $4,503,456.76. The trade was a 4.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Matthew D. Kaufman sold 14,356 shares of the company's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $45.27, for a total transaction of $649,896.12. Following the completion of the transaction, the insider directly owned 349,964 shares in the company, valued at $15,842,870.28. The trade was a 3.94% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 161,983 shares of company stock worth $7,455,828. 10.05% of the stock is currently owned by corporate insiders.

Roblox Price Performance

Shares of Roblox stock opened at $36.11 on Friday. The business has a 50 day simple moving average of $48.46 and a two-hundred day simple moving average of $55.43. Roblox Corporation has a 12 month low of $33.88 and a 12 month high of $142.00. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.82 and a quick ratio of 0.82. The stock has a market capitalization of $24.19 billion, a P/E ratio of -25.25 and a beta of 1.46.

Roblox (NYSE:RBLX - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share 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 business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same period last year, the company posted ($0.41) EPS. The business's revenue was up 8.3% on a year-over-year basis. As a group, analysts predict that Roblox Corporation will post -1.39 EPS for the current fiscal year.

Roblox declared that its board has authorized a share buyback program on Tuesday, May 19th that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes the company to buy up to 9.5% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board believes its stock is undervalued.

Roblox News Roundup

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Some investors view the selloff as a potential buying opportunity, arguing that Roblox’s user growth, creator ecosystem and long-term monetization potential may not be fully reflected in the current valuation. Roblox investment commentary
• Positive Sentiment: Roblox’s latest quarterly loss was narrower than analysts expected, and the company authorized a $3 billion share-repurchase program, which could provide valuation support if management believes the stock is undervalued.
• Neutral Sentiment: Director Gregory Baszucki sold approximately $624,000 of stock under a pre-arranged Rule 10b5-1 trading plan. The sale reduced his direct ownership by 1.3%, but he continues to hold a substantial position, limiting the signal’s significance. SEC insider trading filing
• Negative Sentiment: Multiple law firms are publicizing a securities class-action lawsuit involving investors who purchased Roblox shares between October 31, 2024, and April 30, 2026. The notices cite alleged disclosures concerning the impact of age-verification and safety changes and highlight an August 7 lead-plaintiff deadline. The filings raise headline and potential legal-risk concerns, although the promotional notices do not establish wrongdoing. Pomerantz class-action notice
• Negative Sentiment: The earnings report showed revenue of $1.47 billion, below the $1.60 billion consensus estimate, despite an EPS beat. Revenue growth of 8.3% and concerns about reduced visibility have fueled worries that Roblox’s growth and monetization are slowing.
• Negative Sentiment: Citigroup, B. Riley, Piper Sandler and TD Cowen have reduced their forecasts or price targets, while Benchmark downgraded the stock to sell. The broadening analyst caution reinforces the bearish post-earnings narrative. Citigroup forecast

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on RBLX shares. Weiss Ratings restated a "sell (e+)" rating on shares of Roblox in a research note on Wednesday, June 24th. TD Cowen dropped their price target on Roblox from $49.00 to $40.00 and set a "hold" rating on the stock in a research note on Friday, July 31st. Piper Sandler reissued a "neutral" rating and issued a $47.00 price objective (down from $50.00) on shares of Roblox in a report on Friday, July 31st. Morgan Stanley reduced their price objective on Roblox from $62.00 to $55.00 and set an "overweight" rating for the company in a research note on Friday, July 31st. Finally, HSBC downgraded Roblox from a "buy" rating to a "hold" rating and set a $46.00 target price for the company. in a report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fifteen have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $60.89.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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