Insider Trading February 25, 2026

Roblox Executive Sells $1.32M in Stock to Cover RSU Taxes; Analysts Split on Outlook

Chief People & Systems Officer disposes of 21,413 Class A shares as market debates bookings-driven momentum and engagement risks

By Leila Farooq RBLX
Roblox Executive Sells $1.32M in Stock to Cover RSU Taxes; Analysts Split on Outlook
RBLX

Arvind Chakravarthy, Roblox’s Chief People & Systems Officer, sold 21,413 shares of Class A stock on February 20, 2026, in three transactions totaling about $1.32 million. The sale was executed to satisfy statutory tax withholding obligations tied to restricted stock unit vesting. Following the transactions Chakravarthy holds 177,589 shares directly and may be deemed a beneficial owner of 41,568 shares held by the Jain Chakravarthy Living Trust. Meanwhile, Roblox’s Q4 2025 results outperformed expectations on bookings, prompting divergent analyst reactions.

Key Points

  • Arvind Chakravarthy sold 21,413 Class A shares on February 20, 2026, in three transactions totaling about $1.32 million to cover statutory tax withholding from RSU vesting.
  • After the sales Chakravarthy directly owns 177,589 shares and may be deemed to beneficially own 41,568 shares held by the Jain Chakravarthy Living Trust.
  • Roblox reported stronger-than-expected Q4 2025 results driven by viral creator-led content, prompting mixed analyst reactions on bookings growth, engagement trends, and price targets.

Insider sale details

Arvind Chakravarthy, Roblox Corp’s Chief People & Systems Officer, sold 21,413 shares of Class A common stock on February 20, 2026. The disposal was carried out in three separate trades at prices between $60.95 and $62.69, for proceeds of roughly $1.32 million. Company filings indicate the shares were sold to meet statutory tax withholding requirements arising from the vesting of restricted stock units.

Post-transaction holdings

After the stock sales, Chakravarthy is reported to directly own 177,589 shares of Roblox Class A stock. In addition, he may be considered to have beneficial ownership of 41,568 shares held in the Jain Chakravarthy Living Trust.

Valuation note from InvestingPro

According to analysis available through InvestingPro, the stock appears undervalued at current market levels. The platform’s Pro Research Report for RBLX and more than 1,400 other U.S. equities is cited as the source of that assessment.

Recent company performance

Roblox reported stronger-than-expected results for the fourth quarter of 2025. Management attributed the improvement to viral, creator-led content that materially lifted bookings, profitability, and cash flow in the period.

Analyst reactions

Research houses have reacted with a mix of ratings and target adjustments. Piper Sandler highlighted a 63% year-over-year increase in bookings for Q4 2025, noting that bookings exceeded their expectation by 8%. Despite that upside, TD Cowen reiterated a Sell rating, pointing to concerns about engagement trends.

On the other hand, Roth/MKM upgraded Roblox to Buy and raised its price target to $84.00, citing a favorable bookings outlook and a projected 20% compound annual growth rate over coming years. BMO Capital left an Outperform rating in place and emphasized the early success of a new game, "Survive LAVA for Brainrots!", which reached 60 million lifetime visits shortly after launch.

Benchmark retained a Hold rating and described the 2026 outlook as complex despite strong late-2025 performance. Piper Sandler adjusted its price target to $100.00 from $125.00 while maintaining an Overweight rating. These differing assessments illustrate a range of perspectives among analysts about Roblox’s medium-term trajectory.


Context for investors

The insider sale was executed for tax withholding related to RSU vesting rather than an open-market liquidation for discretionary purposes, according to the transaction details. At the same time, public and professional investors are interpreting recent bookings strength and game-level engagement data differently, leading to divergent analyst guidance.

Risks

  • Engagement trends - TD Cowen cited worries about user engagement that could weigh on future bookings and monetization, impacting media and gaming sector valuations.
  • Analyst divergence - Wide variation in price targets and ratings from firms like Piper Sandler, Roth/MKM, BMO Capital, and Benchmark reflects uncertainty about sustainability of recent momentum, affecting investor sentiment in gaming and digital platforms.
  • Reliance on creator-led hits - Success of individual games such as "Survive LAVA for Brainrots!" can drive bookings spikes but also creates concentration risk in content-driven revenue for the gaming ecosystem.

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