FengHe Fund Management Pte. Ltd. Makes New $11.01 Million Investment in Roblox Corporation (NYSE:RBLX)

Key Points

• FengHe Fund Management Pte. Ltd. invested approximately $11.01 million in Roblox Corporation, acquiring 188,900 shares, which makes up about 4.1% of their investment portfolio.
• Insider transactions included Director Anthony P. Lee selling 66,000 shares for approximately $8.54 million, significantly decreasing his ownership by 19.08%.
• Analysts have raised price targets for Roblox significantly, with Morgan Stanley setting it at $170, reflecting positive sentiment despite the company's negative EPS of ($0.41) reported in their latest quarterly earnings.

FengHe Fund Management Pte. Ltd. purchased a new position in Roblox Corporation (NYSE:RBLX - Free Report) in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 188,900 shares of the company's stock, valued at approximately $11,011,000. Roblox accounts for 4.1% of FengHe Fund Management Pte. Ltd.'s portfolio, making the stock its 9th biggest holding.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Vanguard Group Inc. boosted its stake in shares of Roblox by 8.3% during the 1st quarter. Vanguard Group Inc. now owns 57,640,317 shares of the company's stock valued at $3,359,854,000 after buying an additional 4,400,624 shares during the last quarter. Two Sigma Advisers LP raised its position in shares of Roblox by 23.7% during the 4th quarter. Two Sigma Advisers LP now owns 7,256,600 shares of the company's stock valued at $419,867,000 after acquiring an additional 1,391,800 shares in the last quarter. Whale Rock Capital Management LLC raised its position in shares of Roblox by 95.8% during the 4th quarter. Whale Rock Capital Management LLC now owns 4,755,213 shares of the company's stock valued at $275,137,000 after acquiring an additional 2,326,588 shares in the last quarter. Two Sigma Investments LP raised its position in shares of Roblox by 25.7% during the 4th quarter. Two Sigma Investments LP now owns 4,514,666 shares of the company's stock valued at $261,219,000 after acquiring an additional 921,822 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD raised its position in shares of Roblox by 24.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,363,982 shares of the company's stock valued at $252,501,000 after acquiring an additional 871,027 shares in the last quarter. Hedge funds and other institutional investors own 94.46% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on RBLX. Barclays upped their price target on Roblox from $62.00 to $120.00 and gave the company an "equal weight" rating in a research report on Friday, August 1st. Macquarie upped their price target on Roblox from $76.00 to $80.00 and gave the company an "outperform" rating in a research report on Monday, May 5th. Citigroup upped their price target on Roblox from $123.00 to $152.00 and gave the company a "buy" rating in a research report on Wednesday, July 23rd. JPMorgan Chase & Co. increased their target price on Roblox from $120.00 to $125.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 16th. Finally, Needham & Company LLC raised their target price on Roblox from $79.00 to $159.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Two analysts have rated the stock with a sell rating, four have given a hold rating and nineteen have issued a buy rating to the company's stock. According to data from MarketBeat, Roblox has an average rating of "Moderate Buy" and an average target price of $117.59.

Insider Transactions at Roblox

In related news, CEO David Baszucki sold 687,500 shares of Roblox stock in a transaction dated Monday, June 2nd. The stock was sold at an average price of $87.97, for a total value of $60,479,375.00. Following the transaction, the chief executive officer owned 211,559 shares of the company's stock, valued at approximately $18,610,845.23. This trade represents a 76.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders sold 5,127,213 shares of company stock worth $493,410,989 over the last quarter. 12.92% of the stock is owned by insiders.

Roblox Price Performance

Shares of RBLX stock traded down $1.64 during mid-day trading on Thursday, hitting $125.14. 6,493,902 shares of the stock traded hands, compared to its average volume of 9,423,289. The company's 50-day simple moving average is $112.53 and its 200-day simple moving average is $82.49. The firm has a market cap of $80.72 billion, a price-to-earnings ratio of -87.51 and a beta of 1.63. Roblox Corporation has a twelve month low of $37.50 and a twelve month high of $150.59. The company has a debt-to-equity ratio of 2.94, a quick ratio of 0.97 and a current ratio of 0.97.

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

Roblox Company Profile

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.