SEB Asset Management AB Invests $7.26 Million in Roblox Corporation $RBLX

Key Points

• SEB Asset Management AB opened a new position in Roblox during the first quarter, buying 128,324 shares worth about $7.26 million.
• Roblox reported better-than-expected EPS in its latest quarter, but revenue came in below analyst estimates even as sales still grew 43.4% year over year.
• The company’s board authorized a $3 billion stock buyback covering up to 9.5% of shares, while insiders also continued selling stock to cover tax obligations tied to equity awards.

SEB Asset Management AB acquired a new stake in shares of Roblox Corporation (NYSE:RBLX - Free Report) during the 1st quarter, according to its most recent filing with the SEC. The institutional investor acquired 128,324 shares of the company's stock, valued at approximately $7,258,000.

A number of other large investors also recently modified their holdings of the company. Reyes Financial Architecture Inc. boosted its stake in Roblox by 164.4% in 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 in the last quarter. Hanson & Doremus Investment Management purchased a new position in shares of Roblox during the first quarter worth approximately $25,000. Fideuram Asset Management Ireland dac bought a new stake in shares of Roblox in the 4th quarter worth approximately $27,000. GW&K Investment Management LLC lifted its holdings 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 worth $30,000 after acquiring an additional 161 shares during the last quarter. Finally, Indiana Trust & Investment Management Co bought a new stake in shares of Roblox in the 4th quarter worth approximately $32,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

Roblox Stock Down 1.3%

Shares of NYSE RBLX opened at $52.53 on Wednesday. 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's fifty day moving average is $48.94 and its 200 day moving average is $58.50. The company has a market cap of $35.28 billion, a price-to-earnings ratio of -33.25 and a beta of 1.41.

Roblox (NYSE:RBLX - Get Free Report) last announced its quarterly 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. The business had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.74 billion. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The firm's revenue for the quarter was up 43.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.32) EPS. On average, equities research analysts expect that Roblox Corporation will post -1.39 earnings per share for the current year.

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

Insider Activity

In other news, insider Matthew D. Kaufman sold 14,356 shares of the 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 sale, the insider directly owned 349,964 shares in the company, valued at approximately $15,842,870.28. This represents a 3.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Naveen K. Chopra sold 16,863 shares of the firm's stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total value of $763,556.64. Following the completion of the sale, the chief financial officer directly owned 380,758 shares in the company, valued at $17,240,722.24. The trade was a 4.24% decrease in their ownership of the stock. 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 quarter, insiders sold 161,983 shares of company stock valued at $7,580,990. 10.05% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

RBLX has been the topic of several recent research reports. Morgan Stanley reaffirmed an "overweight" rating and set a $62.00 target price on shares of Roblox in a report on Friday, May 1st. BTIG Research downgraded shares of Roblox from a "buy" rating to a "neutral" rating in a research note on Friday, May 1st. Bank of America lowered shares of Roblox from a "buy" rating to a "neutral" rating and set a $48.00 price target for the company. in a research report on Friday, May 1st. BMO Capital Markets raised Roblox from an "outperform" rating to an "outperform" rating in a research note on Monday, June 29th. Finally, TD Cowen upgraded Roblox from a "sell" rating to a "hold" rating and decreased their price objective for the stock from $54.00 to $49.00 in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Roblox presently has an average rating of "Moderate Buy" and a consensus price target of $85.85.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Recent commentary from Zacks and Yahoo Finance argued that Roblox still has an edge in gaming thanks to user growth, creator incentives, and AI capabilities, while broader analyst sentiment remains generally favorable with “moderate buy”/buy-style ratings from several firms. Article Title
• Positive Sentiment: Investors are also looking ahead to Roblox’s July 30 quarterly results, which can support near-term buying if engagement trends and revenue growth hold up. Article Title
• Neutral Sentiment: Roblox has been rolling out platform and safety updates, including Roblox Kids and Roblox Select accounts, which may improve long-term trust and engagement, but the near-term stock impact is less clear. Article Title
• Negative Sentiment: Multiple law firms, including Hagens Berman, Pomerantz, Schall, Rosen, Portnoy, and Gross, are actively promoting a securities class action against Roblox, with deadlines and an expanded class period tied to alleged misleading statements about the company’s age-check rollout impact. Article Title

Roblox Company 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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