Roblox Corporation $RBLX Shares Sold by Empowered Funds LLC

Key Points

• Empowered Funds LLC cut its Roblox stake by 59.3% in the first quarter, selling 64,262 shares and retaining 44,122 shares valued at approximately $2.5 million. Institutional investors and hedge funds collectively own 94.46% of the company.
• Roblox shares were trading at $36.17, down 2.3%, near their 52-week low of $33.88. The company beat quarterly EPS expectations but missed revenue estimates, reporting $1.47 billion in revenue, up 8.3% year over year.
• Analyst sentiment remains mixed, with a consensus rating of “Hold” and an average price target of $60.89. Roblox has also authorized a $3 billion share-repurchase program, equivalent to up to 9.5% of outstanding shares.

Empowered Funds LLC trimmed its holdings in shares of Roblox Corporation (NYSE:RBLX - Free Report) by 59.3% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 44,122 shares of the company's stock after selling 64,262 shares during the period. Empowered Funds LLC's holdings in Roblox were worth $2,496,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. NewEdge Advisors LLC lifted its holdings in Roblox by 2.3% in the first quarter. NewEdge Advisors LLC now owns 10,236 shares of the company's stock valued at $597,000 after acquiring an additional 231 shares during the period. Sivia Capital Partners LLC grew its stake in shares of Roblox by 70.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 13,000 shares of the company's stock worth $1,368,000 after purchasing an additional 5,363 shares during the period. CW Advisors LLC purchased a new position in shares of Roblox in the 2nd quarter valued at about $272,000. Baird Financial Group Inc. increased its holdings in shares of Roblox by 1.4% in the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company's stock valued at $767,000 after purchasing an additional 102 shares in the last quarter. Finally, WINTON GROUP Ltd acquired a new stake in shares of Roblox in the second quarter valued at about $438,000. 94.46% of the stock is owned by institutional investors and hedge funds.

Roblox Trading Down 2.3%

Shares of Roblox stock opened at $36.17 on Thursday. Roblox Corporation has a fifty-two week low of $33.88 and a fifty-two week high of $142.00. The business's fifty day moving average is $48.68 and its two-hundred day moving average is $55.79. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82. The firm has a market cap of $24.23 billion, a PE ratio of -25.29 and a beta of 1.46.

Roblox (NYSE:RBLX - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, beating analysts' consensus estimates of ($0.34) by $0.08. The business had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.60 billion. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%.The business's revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.41) earnings per share. Analysts anticipate that Roblox Corporation will post -1.38 earnings per share for the current year.

Roblox declared that its Board of Directors has approved a stock repurchase 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 usually a sign that the company's board believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the stock. Weiss Ratings reissued a "sell (e+)" rating on shares of Roblox in a report on Wednesday, June 24th. Jefferies Financial Group cut shares of Roblox from a "hold" rating to a "hold" rating in a report on Friday, May 1st. Barclays reduced their price target on shares of Roblox from $60.00 to $47.00 and set an "equal weight" rating for the company in a research report on Monday. Cantor Fitzgerald initiated coverage on Roblox in a research note on Monday, June 29th. They set an "overweight" rating on the stock. Finally, Morgan Stanley lowered their price target on Roblox from $62.00 to $55.00 and set an "overweight" rating on the stock in a report on Friday, July 31st. One 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 assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $60.89.

Insider Transactions at Roblox

In other news, CEO David Baszucki sold 50,628 shares of the company'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 completion of the transaction, the chief executive officer owned 852,214 shares of the company's stock, valued at $38,588,249.92. This represents a 5.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Matthew D. Kaufman sold 14,356 shares of the stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $45.27, for a total transaction of $649,896.12. Following the transaction, the insider owned 349,964 shares in the company, valued at approximately $15,842,870.28. The trade was a 3.94% decrease in their ownership of the stock. 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 sold 161,983 shares of company stock worth $7,455,828 in the last quarter. 10.05% of the stock is currently owned by corporate insiders.

Trending Headlines about Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Despite the post-earnings decline, some analysts see substantial long-term upside, citing Roblox’s growing user base and the possibility that current pessimism already reflects much of the near-term risk. Roblox: Visibility Has Collapsed And That Is Exactly Why I Am Buying
• Positive Sentiment: Roblox beat quarterly EPS expectations, although revenue fell short of consensus; this provides a limited positive offset to concerns about the company’s outlook.
• Neutral Sentiment: Director Gregory Baszucki sold 16,666 shares for approximately $624,000 under a pre-arranged Rule 10b5-1 trading plan. The transaction reduced his direct holdings by 1.3%, but the planned nature of the sale and his remaining substantial ownership reduce its significance as a bearish signal. SEC Form 4 filing
• Neutral Sentiment: Market commentary remains divided: some investors view the selloff as a buying opportunity, while others question whether the company’s growth and monetization can reaccelerate.
• Negative Sentiment: Citigroup and B. Riley Financial lowered their expectations for Roblox’s stock, adding pressure after the earnings-related selloff. Citigroup forecast B. Riley forecast
• Negative Sentiment: Analysts and financial media highlighted troubling signals in Roblox’s post-earnings outlook, including reduced visibility and concerns that revenue growth is not keeping pace with expectations. Deutsche Bank downgrade coverage
• Negative Sentiment: Several law firms are promoting securities class-action claims tied to Roblox’s October 2024–April 2026 trading period, with an August 7 lead-plaintiff deadline. The notices increase headline and potential legal-risk concerns, although they do not establish wrongdoing. Faruqi class-action deadline notice

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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