Roblox (NYSE:RBLX) Shares Gap Down After Insider Selling

Key Points

• Roblox's stock price gapped down significantly from $133.50 to $125.22 following a large insider selling transaction by Director Anthony P. Lee, who sold 66,000 shares at an average price of $136.33.
• Despite recent stock performance, analysts remain optimistic, with Barclays raising its price target for Roblox to $120.00 and multiple analysts giving the stock a consensus rating of "Moderate Buy."
• Roblox reported mixed earnings results, missing EPS estimates while achieving revenues of $1.44 billion, a 50.5% increase from the previous year, raising expectations for future growth.

Roblox Corporation (NYSE:RBLX - Get Free Report)'s stock price gapped down prior to trading on Friday following insider selling activity. The stock had previously closed at $133.50, but opened at $125.22. Roblox shares last traded at $124.54, with a volume of 3,038,295 shares.

Specifically, Director Anthony P. Lee sold 66,000 shares of the business's stock in a transaction on Wednesday, October 1st. The stock was sold at an average price of $136.33, for a total value of $8,997,780.00. Following the completion of the transaction, the director directly owned 270,628 shares of the company's stock, valued at approximately $36,894,715.24. The trade was a 19.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on RBLX shares. Barclays boosted their price target on Roblox from $62.00 to $120.00 and gave the stock an "equal weight" rating in a research report on Friday, August 1st. Arete Research set a $116.00 target price on Roblox in a research note on Tuesday, September 9th. Oppenheimer restated an "outperform" rating and issued a $125.00 target price (up previously from $80.00) on shares of Roblox in a research note on Wednesday, June 18th. BTIG Research upped their target price on Roblox from $159.00 to $173.00 and gave the stock a "buy" rating in a research note on Tuesday, September 9th. Finally, Needham & Company LLC upped their price target on Roblox from $79.00 to $159.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Twenty research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $126.72.

Roblox Stock Down 5.0%

The business has a fifty day simple moving average of $128.81 and a 200 day simple moving average of $98.39. The firm has a market cap of $81.79 billion, a price-to-earnings ratio of -88.57 and a beta of 1.63. The company has a debt-to-equity ratio of 2.94, a current ratio of 0.97 and a quick ratio of 0.97.

Roblox (NYSE:RBLX - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported ($0.41) EPS for the quarter, missing analysts' consensus estimates of ($0.37) by ($0.04). Roblox had a negative net margin of 23.67% and a negative return on equity of 372.96%. The firm had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.20 billion. During the same period in the previous year, the company earned ($0.32) EPS. Roblox's revenue was up 50.5% compared to the same quarter last year. Roblox has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, equities analysts forecast that Roblox Corporation will post -1.49 EPS for the current fiscal year.

Institutional Investors Weigh In On Roblox

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. GAMMA Investing LLC increased its holdings in shares of Roblox by 10.0% in the third quarter. GAMMA Investing LLC now owns 2,955 shares of the company's stock valued at $409,000 after purchasing an additional 268 shares during the last quarter. Corient Private Wealth LLC increased its stake in Roblox by 14.4% during the second quarter. Corient Private Wealth LLC now owns 13,098 shares of the company's stock worth $1,378,000 after acquiring an additional 1,652 shares during the last quarter. V. M. Manning & CO. Inc. acquired a new stake in Roblox during the second quarter worth $1,315,000. American Trust acquired a new stake in Roblox during the second quarter worth $557,000. Finally, Total Investment Management Inc. acquired a new stake in Roblox during the second quarter worth $29,000. Institutional investors and hedge funds own 94.46% of the company's stock.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.

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