Roblox Corporation $RBLX Shares Bought by Handelsbanken Fonder AB

Handelsbanken Fonder AB boosted its holdings in shares of Roblox Corporation (NYSE:RBLX) by 58.4% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 317,111 shares of the company’s stock after acquiring an additional 116,899 shares during the period. Handelsbanken Fonder AB’s holdings in Roblox were worth $25,696,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Reyes Financial Architecture Inc. raised its position in Roblox by 164.4% during the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock worth $25,000 after acquiring an additional 194 shares during the last quarter. Pilgrim Partners Asia Pte Ltd acquired a new position in Roblox during the third quarter worth about $26,000. Indiana Trust & Investment Management Co acquired a new position in Roblox during the fourth quarter worth about $32,000. Whittier Trust Co. of Nevada Inc. acquired a new position in Roblox during the third quarter worth about $37,000. Finally, Garner Asset Management Corp purchased a new stake in shares of Roblox during the fourth quarter worth about $37,000. Institutional investors and hedge funds own 94.46% of the company’s stock.

Roblox News Roundup

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox announced its first-ever share repurchase authorization, a $3 billion buyback program that can cover up to about 9.5% of outstanding shares. Buybacks are often seen as a sign management believes the stock is undervalued, which has helped lift sentiment. RTT News buyback report
• Positive Sentiment: Analysts and traders viewed the repurchase plan as a possible offset to recent guidance worries, helping the stock rebound after earlier pressure tied to a softer bookings outlook. Yahoo Finance article
• Neutral Sentiment: Roblox is continuing to roll out new chat and engagement tools after age-check changes reduced access to some communication features. Management is trying to rebuild momentum, but the near-term impact on daily active users and bookings remains uncertain. Yahoo Finance article on safety-first strategy
• Negative Sentiment: Child-safety concerns remain a headwind, with Reuters reporting that advocacy groups have asked the U.S. FTC to investigate Roblox over its design and marketing practices. That adds regulatory risk and could weigh on the stock if scrutiny intensifies. Reuters article
• Negative Sentiment: Recent coverage also highlighted that Roblox’s tighter safety and age-check measures may be slowing user growth and clouding the bookings outlook, which has pressured investor confidence in the company’s near-term growth trajectory. Zacks article

Insider Buying and Selling at Roblox

In other Roblox news, CEO David Baszucki sold 10,834 shares of Roblox stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $61.63, for a total transaction of $667,699.42. Following the transaction, the chief executive officer directly owned 800,539 shares of the company’s stock, valued at $49,337,218.57. The trade was a 1.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Gregory Baszucki sold 16,666 shares of Roblox stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $44.97, for a total transaction of $749,470.02. Following the transaction, the director directly owned 1,294,501 shares in the company, valued at approximately $58,213,709.97. This trade represents a 1.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 76,144 shares of company stock valued at $4,235,769. 10.05% of the stock is currently owned by corporate insiders.

Roblox Trading Up 3.2%

Shares of RBLX stock opened at $45.87 on Thursday. The stock has a market cap of $30.81 billion, a price-to-earnings ratio of -29.03 and a beta of 1.50. 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 fifty-two week low of $40.15 and a fifty-two week high of $150.59. The firm’s 50 day moving average price is $54.06 and its two-hundred day moving average price is $72.16.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.06. The firm had revenue of $1.44 billion for 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%. Roblox’s revenue was up 43.4% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.32) earnings per share. On average, analysts anticipate that Roblox Corporation will post -1.4 EPS for the current year.

Roblox declared that its board has approved a share repurchase program on Tuesday, May 19th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 9.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on RBLX shares. Barclays lowered their price target on shares of Roblox from $115.00 to $60.00 and set an “equal weight” rating for the company in a report on Friday, May 1st. Freedom Capital upgraded shares of Roblox from a “hold” rating to a “strong-buy” rating in a report on Friday, February 6th. BMO Capital Markets reiterated an “outperform” rating on shares of Roblox in a report on Friday, February 6th. Morgan Stanley reiterated an “overweight” rating and set a $62.00 price target on shares of Roblox in a report on Friday, May 1st. Finally, Roth Mkm set a $65.00 price target on shares of Roblox in a report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $87.17.

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.