Motley Fool Asset Management LLC Sells 32,989 Shares of Roblox Corporation $RBLX

Key Points

• Motley Fool Asset Management cut its Roblox stake by 72.9% in the third quarter, selling 32,989 shares and retaining 12,288 shares valued at approximately $521,000. Institutional investors collectively own 94.46% of the company.
• Roblox’s third-quarter adjusted loss of $0.32 per share beat expectations, while revenue rose 15.6% year over year to $1.57 billion. However, revenue missed estimates, and the company reported a $227 million net loss.
• Engagement weakened materially: average daily users fell 9% to 138 million and engagement hours declined 15% to 34 billion. Analysts maintain a consensus “Hold” rating with an average price target of $54.08.

Motley Fool Asset Management LLC cut its stake in Roblox Corporation (NYSE:RBLX - Free Report) by 72.9% in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 12,288 shares of the company's stock after selling 32,989 shares during the quarter. Motley Fool Asset Management LLC's holdings in Roblox were worth $521,000 as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. TD Waterhouse Canada Inc. raised its position in Roblox by 21.5% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 1,152 shares of the company's stock worth $50,000 after purchasing an additional 204 shares during the period. Stonekeep Investments LLC lifted its stake in Roblox by 2.4% in the second quarter. Stonekeep Investments LLC now owns 9,070 shares of the company's stock worth $493,000 after purchasing an additional 213 shares during the last quarter. Activest Wealth Management boosted its position in shares of Roblox by 72.9% during the third quarter. Activest Wealth Management now owns 588 shares of the company's stock valued at $25,000 after buying an additional 248 shares during the period. Basecamp Wealth Advisors LLC boosted its position in shares of Roblox by 98.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company's stock valued at $29,000 after buying an additional 252 shares during the period. Finally, Root Financial Partners LLC grew its stake in shares of Roblox by 100.7% during the first quarter. Root Financial Partners LLC now owns 564 shares of the company's stock valued at $32,000 after buying an additional 283 shares during the last quarter. Institutional investors own 94.46% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on RBLX shares. Canaccord Genuity Group set a $58.00 price target on Roblox in a report on Friday, July 31st. Oppenheimer restated an "outperform" rating and set a $50.00 price objective (down from $82.00) on shares of Roblox in a report on Friday, September 11th. Piper Sandler reaffirmed a "neutral" rating and issued a $47.00 price objective (down from $50.00) on shares of Roblox in a research report on Friday, July 31st. Needham & Company LLC increased their target price on Roblox from $50.00 to $55.00 and gave the stock a "buy" rating in a research note on Wednesday, September 23rd. Finally, UBS Group lifted their target price on Roblox from $45.00 to $53.00 and gave the stock a "neutral" rating in a research report on Wednesday, October 14th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, thirteen have assigned a Hold rating and five have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $54.08.

Key Headlines Impacting Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox reported third-quarter adjusted earnings of -$0.32 per share, better than the consensus estimate of -$0.43. Revenue increased 15.6% year over year to approximately $1.57 billion, while gross profit rose 48.5% to $466 million, indicating improving margins. Roblox quarterly earnings report
• Positive Sentiment: Operating cash flow remained substantial at approximately $395 million, and cash and equivalents increased to about $1.1 billion. These figures provide some support for Roblox’s investment in platform growth despite continued GAAP losses.
• Neutral Sentiment: Management discussed the quarter on its earnings call, with investors likely looking for guidance on bookings, monetization, platform safety and the outlook for user growth. Analysts’ recent price targets have been mixed, with a reported median target near $56. Roblox Q3 2026 earnings call transcript
• Negative Sentiment: Revenue fell short of Wall Street expectations of roughly $1.63 billion to $1.7 billion. The company also remained unprofitable, reporting a $227 million net loss, a $283 million operating loss and a negative net margin of 17.6%. Roblox earnings reaction
• Negative Sentiment: Engagement trends were notably weak: average daily users declined 9% to 138 million, while engagement hours dropped 15% to 34 billion. Those declines raise concerns about future bookings, advertising and virtual-currency spending. Roblox user and engagement metrics
• Negative Sentiment: Roblox’s liabilities increased to approximately $10.1 billion, operating cash flow declined from the prior year, and reported insider activity showed sales without purchases over the past six months. A shareholder law firm also announced an investigation, adding another risk factor for investors. Roblox financial and insider activity report

Roblox Stock Down 2.0%

Shares of NYSE:RBLX opened at $52.22 on Friday. Roblox Corporation has a 52-week low of $33.88 and a 52-week high of $126.28. The stock has a market cap of $34.99 billion, a P/E ratio of -36.52 and a beta of 1.47. The business's 50 day moving average is $46.25 and its 200 day moving average is $52.86. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82.

Roblox (NYSE:RBLX - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The company reported ($0.32) EPS for the quarter, topping the consensus estimate of ($0.43) by $0.11. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%. The company had revenue of $1.57 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same period last year, the business posted ($0.37) EPS. Roblox's quarterly revenue was up 15.6% on a year-over-year basis. Sell-side analysts predict that Roblox Corporation will post -1.41 EPS for the current year.

Insider Transactions at Roblox

In related news, CFO Naveen Chopra sold 17,509 shares of the company's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $664,641.64. Following the completion of the sale, the chief financial officer directly owned 363,249 shares of the company's stock, valued at $13,788,932.04. This represents a 4.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Gregory Baszucki sold 16,666 shares of the stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $42.87, for a total transaction of $714,471.42. Following the transaction, the director owned 1,252,836 shares in the company, valued at approximately $53,709,079.32. The trade was a 1.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 186,390 shares of company stock valued at $7,283,371 over the last three months. 10.05% of the stock is currently owned by corporate insiders.

Roblox Company Profile

Roblox Corporation operates Roblox, an online platform where users can create, publish, and participate in interactive digital experiences. The platform supports a broad range of user-generated content, including games, social spaces, entertainment, educational activities, and virtual events.

Roblox provides development tools through Roblox Studio, enabling creators and developers to design experiences and build virtual items and environments. Users can customize avatars, communicate with others, and access content across computers, mobile devices, consoles, and other supported platforms.

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