Royal Bank of Canada Cuts Stake in Roblox Corporation $RBLX

Royal Bank of Canada reduced its holdings in shares of Roblox Corporation (NYSE:RBLX) by 5.5% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,679,652 shares of the company’s stock after selling 97,845 shares during the period. Royal Bank of Canada’s holdings in Roblox were worth $95,002,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. NewEdge Advisors LLC lifted its holdings in shares of Roblox by 2.3% in the 1st quarter. NewEdge Advisors LLC now owns 10,236 shares of the company’s stock worth $597,000 after acquiring an additional 231 shares during the last quarter. Sivia Capital Partners LLC grew its holdings 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 valued at $1,368,000 after purchasing an additional 5,363 shares during the last quarter. CW Advisors LLC bought a new position in shares of Roblox during the 2nd quarter valued at $272,000. Baird Financial Group Inc. raised its position in Roblox by 1.4% in the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock worth $767,000 after purchasing an additional 102 shares during the period. Finally, WINTON GROUP Ltd purchased a new position in Roblox in the 2nd quarter worth $438,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

Roblox Price Performance

RBLX stock opened at $35.66 on Friday. The stock has a market capitalization of $23.95 billion, a price-to-earnings ratio of -24.94 and a beta of 1.41. The firm’s 50-day moving average price is $49.28 and its two-hundred day moving average price is $56.93. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45. Roblox Corporation has a 12-month low of $33.88 and a 12-month high of $150.59.

Roblox (NYSE:RBLX) last posted its earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.34) by $0.08. The company had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.60 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 243.73%. Roblox’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same period in the prior year, the business posted ($0.41) earnings per share. As a group, equities analysts predict that Roblox Corporation will post -1.39 earnings per share for the current year.

Roblox declared that its Board of Directors has initiated a share buyback plan on Tuesday, May 19th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 9.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other Roblox news, insider Mark Reinstra sold 4,512 shares of the stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $57.34, for a total value of $258,718.08. Following the completion of the sale, the insider owned 422,248 shares in the company, valued at approximately $24,211,700.32. This trade represents a 1.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gregory Baszucki sold 16,666 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $57.69, for a total value of $961,461.54. Following the transaction, the director directly owned 1,277,835 shares in the company, valued at $73,718,301.15. This trade represents a 1.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 161,983 shares of company stock worth $7,580,990. Insiders own 10.05% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts have issued reports on RBLX shares. Piper Sandler restated a “neutral” rating and set a $47.00 price target (down from $50.00) on shares of Roblox in a research report on Friday. Cantor Fitzgerald assumed coverage on Roblox in a report on Monday, June 29th. They issued an “overweight” rating on the stock. The Goldman Sachs Group lowered their target price on Roblox from $125.00 to $65.00 and set a “buy” rating for the company in a research note on Friday, May 1st. Morgan Stanley reduced their price target on Roblox from $62.00 to $55.00 and set an “overweight” rating on the stock in a research report on Friday. Finally, UBS Group set a $33.00 price objective on Roblox in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, thirteen have issued a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $67.04.

Key Headlines Impacting Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox reported an adjusted second-quarter loss of $0.26 per share, narrower than the consensus loss estimate of approximately $0.33–$0.34. Revenue increased 8.3% year over year to $1.47 billion, although it was below the $1.60 billion analyst estimate. Roblox Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management highlighted continued investment in AI creation tools and efforts to expand Roblox’s gaming ecosystem, while daily active users grew 10% year over year. These initiatives could support longer-term engagement and monetization. Roblox Q2 Earnings Call Highlights AI Push and Monetization Reset
• Neutral Sentiment: TD Cowen cut its price target from $49 to $40 and moved to a Hold rating. Wedbush maintained Neutral but reduced its target from $65 to $40, indicating analysts see limited near-term upside while the outlook is reassessed. Roblox Analysts Slash Their Forecasts After Q2 Results
• Negative Sentiment: Roblox forecast third-quarter bookings of $1.58 billion to $1.65 billion, below Wall Street expectations, and projected revenue growth of only 4% to 10%. Investors were particularly concerned that changes to discovery and recommendation algorithms are reducing in-app spending. Roblox set for worst one-day drop as discovery changes hurt in-app spending
• Negative Sentiment: Stricter age-verification and safety measures are weighing on user onboarding and engagement, creating additional uncertainty around bookings and monetization despite ongoing user growth. The disappointing outlook prompted multiple analysts to issue Sell ratings or sharply lower forecasts. Roblox shares plummet on revenue miss, withdrawn guidance
• Negative Sentiment: Several law firms announced or promoted a securities class action covering investors who purchased Roblox shares from October 31, 2024, through April 30, 2026. The August 7, 2026 lead-plaintiff deadline adds legal and reputational risk, although the announcements themselves do not establish liability. RBLX Investor Alert

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.