Roblox Target of Unusually Large Options Trading (NYSE:RBLX)

Roblox Corporation (NYSE:RBLX) saw unusually large options trading activity on Tuesday. Stock investors purchased 54,765 call options on the company. This represents an increase of 59% compared to the typical daily volume of 34,495 call options.

Roblox News Summary

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Large retail/option-driven buying pushed a sharp rally on Jan. 13 — unusually high call volume (tens of thousands of contracts) and above-average equity volume attracted momentum traders and drove the prior surge. Read More.
• Positive Sentiment: Fundamentals/storyline: coverage highlighting breakout “hits” (example: popular games like “Brainrots”) supports the thesis of content-led bookings growth and longer-term monetization upside, which helped lift sentiment during the rally. Read More.
• Neutral Sentiment: Analyst actions are mixed: Morgan Stanley kept an Overweight stance but trimmed its price target (from $170 to $155), signaling continued conviction but slightly reduced near-term upside expectations. Read More.
• Neutral Sentiment: Investors were positioning ahead of FY25 earnings, which amplified moves in both directions — bullish positioning boosted the run-up, while uncertainty around the print increases downside risk into the release. Read More.
• Negative Sentiment: Insider selling: Director Anthony P. Lee sold 7,000 shares at ~ $82.45 on Jan. 13 (SEC Form 4 filing), a short-term negative signal even though he retains a large stake. Read More.
• Negative Sentiment: Additional reported insider sale: Rep. Gilbert Ray Cisneros Jr. is reported to have sold RBLX shares, adding to negative sentiment around recent insider activity. Read More.
• Negative Sentiment: Short-term pullback: data and commentary show RBLX is dipping more than the broader market after the prior-day surge, consistent with profit-taking and mean-reversion following aggressive intraday flows. Read More.

Insider Buying and Selling at Roblox

In other news, Director Anthony P. Lee sold 7,000 shares of the firm’s stock in a transaction that occurred on Tuesday, January 13th. The shares were sold at an average price of $82.45, for a total value of $577,150.00. Following the completion of the transaction, the director owned 256,768 shares of the company’s stock, valued at approximately $21,170,521.60. This trade represents a 2.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CAO Amy Marie Rawlings sold 2,642 shares of Roblox stock in a transaction that occurred on Thursday, November 20th. The shares were sold at an average price of $95.24, for a total transaction of $251,624.08. Following the completion of the transaction, the chief accounting officer owned 46,452 shares of the company’s stock, valued at $4,424,088.48. This trade represents a 5.38% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 504,300 shares of company stock valued at $46,290,436. Corporate insiders own 12.92% of the company’s stock.

Hedge Funds Weigh In On Roblox

Large investors have recently bought and sold shares of the stock. NewEdge Advisors LLC boosted its position in shares of Roblox by 2.3% in the 1st quarter. NewEdge Advisors LLC now owns 10,236 shares of the company’s stock valued at $597,000 after purchasing an additional 231 shares during the period. Focus Partners Wealth lifted its stake in Roblox by 88.9% in the first quarter. Focus Partners Wealth now owns 35,547 shares of the company’s stock valued at $2,072,000 after buying an additional 16,725 shares during the last quarter. Strs Ohio acquired a new stake in shares of Roblox in the first quarter valued at approximately $836,000. AG2R LA Mondiale Gestion D Actifs purchased a new position in shares of Roblox during the first quarter worth approximately $1,088,000. Finally, RDA Financial Network purchased a new position in shares of Roblox during the second quarter worth approximately $327,000. Institutional investors and hedge funds own 94.46% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the company. Citigroup increased their price objective on Roblox from $152.00 to $155.00 and gave the company a “buy” rating in a research note on Wednesday, October 8th. JPMorgan Chase & Co. lowered Roblox from an “overweight” rating to a “neutral” rating and reduced their price target for the company from $145.00 to $100.00 in a research report on Friday, December 12th. Barclays boosted their price objective on Roblox from $120.00 to $130.00 and gave the stock an “equal weight” rating in a research report on Friday, October 31st. Wolfe Research set a $100.00 target price on shares of Roblox in a report on Monday, January 5th. Finally, Roth Capital reiterated a “neutral” rating and set a $146.00 price target on shares of Roblox in a report on Friday, October 17th. Seventeen research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $134.23.

Roblox Price Performance

RBLX stock opened at $82.71 on Thursday. The business has a 50 day moving average price of $89.62 and a 200 day moving average price of $112.21. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 2.54. The stock has a market cap of $54.16 billion, a price-to-earnings ratio of -57.84 and a beta of 1.64. Roblox has a fifty-two week low of $50.10 and a fifty-two week high of $150.59.

Roblox (NYSE:RBLX) last released its quarterly earnings data on Thursday, October 30th. The company reported ($0.37) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.44) by $0.07. The company had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.64 billion. Roblox had a negative net margin of 21.70% and a negative return on equity of 314.20%. The firm’s revenue for the quarter was up 70.3% on a year-over-year basis. During the same quarter last year, the company earned ($0.37) earnings per share. Equities research analysts anticipate that Roblox will post -1.49 earnings per share for the current fiscal year.

About Roblox

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.