Franchise Capital Ltd Takes Position in Roblox Corporation $RBLX

Key Points

• Franchise Capital Ltd acquired a new stake in Roblox Corporation, purchasing 15,200 shares valued at approximately $1.6 million, making it the 9th largest holding in their portfolio.
• Roblox reported a revenue of $1.44 billion for the last quarter, surpassing analysts' estimates, but posted a loss of ($0.41) earnings per share, missing consensus projections by $0.04.
• Analyst ratings for Roblox show significant optimism, with Morgan Stanley and Bank of America raising their price targets to as high as $171.00, resulting in a consensus rating of "Moderate Buy."

Franchise Capital Ltd acquired a new stake in Roblox Corporation (NYSE:RBLX - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm acquired 15,200 shares of the company's stock, valued at approximately $1,599,000. Roblox makes up approximately 0.8% of Franchise Capital Ltd's portfolio, making the stock its 9th largest holding.

Other institutional investors also recently modified their holdings of the company. ORG Partners LLC acquired a new position in shares of Roblox during the 2nd quarter worth about $33,000. Fifth Third Bancorp increased its stake in shares of Roblox by 124.7% during the 2nd quarter. Fifth Third Bancorp now owns 537 shares of the company's stock worth $56,000 after purchasing an additional 298 shares during the last quarter. Larson Financial Group LLC increased its stake in shares of Roblox by 819.0% during the 1st quarter. Larson Financial Group LLC now owns 579 shares of the company's stock worth $34,000 after purchasing an additional 516 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Roblox during the 1st quarter worth about $39,000. Finally, MassMutual Private Wealth & Trust FSB increased its stake in shares of Roblox by 82.0% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 688 shares of the company's stock worth $72,000 after purchasing an additional 310 shares during the last quarter. 94.46% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Roblox

In other news, Director Anthony P. Lee sold 111,112 shares of the company's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $131.01, for a total value of $14,556,783.12. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Arvind Chakravarthy sold 20,552 shares of the company's stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $117.71, for a total transaction of $2,419,175.92. Following the completion of the sale, the insider directly owned 242,469 shares in the company, valued at $28,541,025.99. This represents a 7.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 372,876 shares of company stock worth $48,196,989 in the last 90 days. 12.92% of the stock is currently owned by corporate insiders.

Roblox Trading Up 3.0%

NYSE:RBLX opened at $126.33 on Tuesday. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 2.94. The stock has a market capitalization of $81.49 billion, a price-to-earnings ratio of -88.34 and a beta of 1.63. The firm has a fifty day simple moving average of $129.01 and a two-hundred day simple moving average of $99.88. Roblox Corporation has a 12 month low of $37.50 and a 12 month high of $150.59.

Roblox (NYSE:RBLX - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported ($0.41) earnings per share 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 the consensus estimate of $1.20 billion. Roblox had a negative net margin of 23.67% and a negative return on equity of 372.96%. The firm's revenue for the quarter was up 50.5% on a year-over-year basis. During the same period in the previous year, the business earned ($0.32) earnings per share. Roblox has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Analysts expect that Roblox Corporation will post -1.49 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

RBLX has been the topic of several recent analyst reports. Morgan Stanley boosted their price objective on shares of Roblox from $76.00 to $170.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Bank of America boosted their price objective on shares of Roblox from $159.00 to $171.00 and gave the stock a "buy" rating in a research note on Monday, September 8th. Oppenheimer reiterated an "outperform" rating and issued a $125.00 price target (up previously from $80.00) on shares of Roblox in a research note on Wednesday, June 18th. Arete Research set a $116.00 price target on shares of Roblox in a research note on Tuesday, September 9th. Finally, Cowen reiterated a "sell" rating on shares of Roblox in a research note on Monday, August 18th. Twenty research analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $126.72.

Roblox 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.

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