Roblox Corporation $RBLX Shares Bought by SG Americas Securities LLC

Key Points

• SG Americas Securities LLC increased its Roblox position by 26.3% in the first quarter, buying 91,130 additional shares and bringing its total to 437,011 shares worth about $24.7 million.
• Roblox recently reported better-than-expected EPS of -$0.35 versus the -$0.41 estimate, but revenue of $1.44 billion fell short of Wall Street’s $1.74 billion forecast even as it rose 43.4% year over year.
• The company’s board authorized a $3 billion stock buyback, while the stock continues to face pressure from insider selling, analyst downgrades, and litigation-related concerns over user growth and child-safety issues.

SG Americas Securities LLC grew its position in shares of Roblox Corporation (NYSE:RBLX - Free Report) by 26.3% in the first quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 437,011 shares of the company's stock after buying an additional 91,130 shares during the quarter. SG Americas Securities LLC owned 0.07% of Roblox worth $24,717,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Baird Financial Group Inc. raised its holdings in Roblox by 1.4% during the second quarter. Baird Financial Group Inc. now owns 7,294 shares of the company's stock worth $767,000 after purchasing an additional 102 shares in the last quarter. Sunbelt Securities Inc. boosted its holdings in 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 in the last quarter. Brown Brothers Harriman & Co. boosted its holdings in Roblox by 2.8% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company's stock valued at $560,000 after purchasing an additional 110 shares in the last quarter. Westpac Banking Corp increased its position in Roblox by 0.6% during the 3rd quarter. Westpac Banking Corp now owns 20,043 shares of the company's stock worth $2,776,000 after purchasing an additional 115 shares during the period. Finally, NewEdge Advisors LLC increased its position in Roblox by 1.3% during the 2nd quarter. NewEdge Advisors LLC now owns 10,374 shares of the company's stock worth $1,091,000 after purchasing an additional 138 shares during the period. Hedge funds and other institutional investors own 94.46% of the company's stock.

Roblox Stock Performance

NYSE RBLX opened at $47.89 on Thursday. The business has a 50 day moving average price of $48.66 and a 200 day moving average price of $62.86. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89. The company has a market capitalization of $32.16 billion, a P/E ratio of -30.31 and a beta of 1.44. Roblox Corporation has a 1-year low of $40.15 and a 1-year high of $150.59.

Roblox (NYSE:RBLX - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share 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 analyst estimates of $1.74 billion. During the same quarter in the prior year, the company earned ($0.32) earnings per share. Roblox's revenue was up 43.4% compared to the same quarter last year. Sell-side analysts expect that Roblox Corporation will post -1.4 EPS for the current fiscal year.

Roblox announced that its Board of Directors has initiated a stock buyback plan on Tuesday, May 19th that authorizes the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 9.5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Insider Transactions at Roblox

In related news, insider Mark Reinstra sold 5,978 shares of the stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $41.71, for a total value of $249,342.38. Following the sale, the insider directly owned 426,760 shares of the company's stock, valued at approximately $17,800,159.60. This represents a 1.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Baszucki sold 50,628 shares of the firm's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $45.28, for a total transaction of $2,292,435.84. Following the transaction, the chief executive officer owned 852,214 shares of the company's stock, valued at $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 90 days. Insiders own 10.05% of the company's stock.

Key Headlines Impacting Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox was recently trading higher relative to the broader market, suggesting some buyers are still supporting the shares despite the legal overhang. Roblox (RBLX) Ascends While Market Falls: Some Facts to Note
• Neutral Sentiment: Roblox continues to attract advertiser and product attention, including age-based account updates and new measurement tools, which could support the long-term platform narrative. Did New Kid-Safe Accounts and TV-Style Ad Metrics Just Shift Roblox's (RBLX) Investment Narrative?
• Negative Sentiment: Roblox faces a securities class action alleging investors were misled about organic user growth and the effects of its age-verification rollout, adding legal uncertainty for shareholders. Roblox Corporation (RBLX) Faces Securities Class Action Amid Surprise Age Verification Impact, $6.7 Billion Market Cap Wiped Out - HBBS
• Negative Sentiment: Additional law firms are urging investors to join or lead lawsuits, keeping the stock in the spotlight and reinforcing concerns about ongoing litigation risk. RBLX Investors Have Opportunity to Lead Roblox Corporation Securities Fraud Lawsuit
• Negative Sentiment: Roblox is also facing broader child-safety allegations in litigation brought with the Arkansas Attorney General, which could add reputational and regulatory pressure. The Lanier Law Firm Represents the Arkansas Attorney General in Claims Against Roblox and Discord Over a “Predatory Pipeline” Targeting Children

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. Bank of America cut Roblox from a "buy" rating to a "neutral" rating and set a $48.00 price target for the company. in a report on Friday, May 1st. Wedbush lowered Roblox from a "hold" rating to a "neutral" rating in a report on Friday, May 1st. Barclays cut their price objective on Roblox from $115.00 to $60.00 and set an "equal weight" rating for the company in a research report on Friday, May 1st. UBS Group reduced their target price on Roblox from $74.00 to $49.00 and set a "neutral" rating for the company in a report on Friday, May 1st. Finally, Oppenheimer started coverage on shares of Roblox in a research report on Friday, May 1st. They set an "outperform" rating on the stock. One equities research 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.com, the stock has an average rating of "Hold" and a consensus price target of $87.07.

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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