Handelsbanken Fonder AB Raises Stake in Roblox Corporation $RBLX

Handelsbanken Fonder AB boosted its holdings in shares of Roblox Corporation (NYSE:RBLX - Free Report) by 58.4% during the 4th quarter, according to its most recent 13F filing with the SEC. The fund owned 317,111 shares of the company's stock after purchasing an additional 116,899 shares during the period. Handelsbanken Fonder AB's holdings in Roblox were worth $25,696,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently bought and sold shares of the business. Csenge Advisory Group purchased a new position in Roblox during the 4th quarter worth $357,000. Capstone Capital Management Ltd acquired a new stake in shares of Roblox in the 4th quarter worth $271,000. ProShare Advisors LLC lifted its stake in shares of Roblox by 9.1% in the 4th quarter. ProShare Advisors LLC now owns 5,205 shares of the company's stock worth $422,000 after acquiring an additional 434 shares during the period. North Dakota State Investment Board acquired a new stake in shares of Roblox in the 4th quarter worth $2,421,000. Finally, Soltis Investment Advisors LLC acquired a new stake in shares of Roblox in the 4th quarter worth $211,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

Roblox Stock Up 3.2%

Shares of NYSE RBLX opened at $45.87 on Thursday. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 2.45. Roblox Corporation has a 52 week low of $40.15 and a 52 week high of $150.59. The firm has a 50-day moving average price of $54.06 and a 200 day moving average price of $72.16. The stock has a market capitalization of $30.81 billion, a price-to-earnings ratio of -29.03 and a beta of 1.50.

Roblox (NYSE:RBLX - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, beating the consensus estimate of ($0.41) by $0.06. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The firm had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.74 billion. During the same quarter last year, the business earned ($0.32) earnings per share. The business's revenue for the quarter was up 43.4% compared to the same quarter last year. Equities research analysts anticipate that Roblox Corporation will post -1.4 EPS for the current fiscal year.

Roblox declared that its Board of Directors has initiated a share repurchase program on Tuesday, May 19th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the company to buy up to 9.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Analyst Ratings Changes

Several analysts have recently commented on the stock. Citigroup reduced their target price on shares of Roblox from $90.00 to $70.00 and set a "buy" rating for the company in a research note on Monday, May 4th. Needham & Company LLC assumed coverage on shares of Roblox in a research note on Friday, May 1st. They issued a "buy" rating and a $60.00 target price for the company. HSBC cut shares of Roblox from a "buy" rating to a "hold" rating and set a $46.00 target price for the company. in a research note on Friday, May 1st. Benchmark restated a "hold" rating on shares of Roblox in a research note on Monday, February 2nd. Finally, Raymond James Financial cut shares of Roblox from an "outperform" rating to a "market perform" rating in a research note on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Roblox presently has an average rating of "Hold" and a consensus target price of $87.17.

Key Stories Impacting Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox announced its first-ever share repurchase authorization, a $3 billion buyback program that can cover up to about 9.5% of outstanding shares. Buybacks are often seen as a sign management believes the stock is undervalued, which has helped lift sentiment. RTT News buyback report
• Positive Sentiment: Analysts and traders viewed the repurchase plan as a possible offset to recent guidance worries, helping the stock rebound after earlier pressure tied to a softer bookings outlook. Yahoo Finance article
• Neutral Sentiment: Roblox is continuing to roll out new chat and engagement tools after age-check changes reduced access to some communication features. Management is trying to rebuild momentum, but the near-term impact on daily active users and bookings remains uncertain. Yahoo Finance article on safety-first strategy
• Negative Sentiment: Child-safety concerns remain a headwind, with Reuters reporting that advocacy groups have asked the U.S. FTC to investigate Roblox over its design and marketing practices. That adds regulatory risk and could weigh on the stock if scrutiny intensifies. Reuters article
• Negative Sentiment: Recent coverage also highlighted that Roblox’s tighter safety and age-check measures may be slowing user growth and clouding the bookings outlook, which has pressured investor confidence in the company’s near-term growth trajectory. Zacks article

Insider Activity at Roblox

In related news, Director Gregory Baszucki sold 16,666 shares of the firm's stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $44.97, for a total value of $749,470.02. Following the completion of the sale, the director owned 1,294,501 shares in the company, valued at $58,213,709.97. This trade represents a 1.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Mark Reinstra sold 18,653 shares of the firm's stock in a transaction dated Monday, April 13th. The shares were sold at an average price of $57.94, for a total transaction of $1,080,754.82. Following the completion of the sale, the insider owned 455,473 shares of the company's stock, valued at $26,390,105.62. This trade represents a 3.93% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 76,144 shares of company stock worth $4,235,769 over the last three months. 10.05% of the stock is currently owned by company insiders.

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.

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