Franklin Resources Inc. Raises Position in Roblox Corporation $RBLX

Key Points

• Franklin Resources increased its stake in Roblox by 9.8%, owning 6,963,693 shares (about 1.06% of the company) valued at roughly $964.6 million after adding 619,048 shares in Q3.
• Roblox reported Q3 revenue of $1.42 billion (up 122.6% YoY) and EPS of -$0.45 (beat estimates), but revenue missed the $2.08 billion forecast and the stock fell about 6.2%, with a market cap of ~$38.9 billion.
• Insiders sold roughly 703,144 shares (~$51.7 million) over the last three months; institutional ownership is very high at 94.46%, and analysts hold a consensus "Moderate Buy" rating with a $117.35 target.

Franklin Resources Inc. boosted its holdings in shares of Roblox Corporation (NYSE:RBLX - Free Report) by 9.8% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The firm owned 6,963,693 shares of the company's stock after buying an additional 619,048 shares during the period. Franklin Resources Inc. owned approximately 1.06% of Roblox worth $964,611,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Pilgrim Partners Asia Pte Ltd purchased a new stake in shares of Roblox in the 3rd quarter valued at about $26,000. Whittier Trust Co. of Nevada Inc. bought a new stake in shares of Roblox during the 3rd quarter valued at about $37,000. Total Investment Management Inc. purchased a new position in shares of Roblox during the second quarter worth about $29,000. Root Financial Partners LLC purchased a new position in shares of Roblox during the third quarter worth about $38,000. Finally, Salomon & Ludwin LLC bought a new position in shares of Roblox in the third quarter worth approximately $41,000. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

Roblox Stock Down 6.2%

Shares of NYSE RBLX opened at $58.76 on Wednesday. The stock has a market capitalization of $38.88 billion, a P/E ratio of -37.91 and a beta of 1.62. Roblox Corporation has a one year low of $50.10 and a one year high of $150.59. The firm's 50 day simple moving average is $71.25 and its two-hundred day simple moving average is $98.66. The company has a debt-to-equity ratio of 2.65, a current ratio of 0.96 and a quick ratio of 0.96.

Roblox (NYSE:RBLX - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The company reported ($0.45) earnings per share for the quarter, topping analysts' consensus estimates of ($0.49) by $0.04. Roblox had a negative net margin of 21.78% and a negative return on equity of 304.42%. The firm had revenue of $1.42 billion during the quarter, compared to analyst estimates of $2.08 billion. During the same period in the previous year, the business posted ($0.33) EPS. The business's quarterly revenue was up 122.6% on a year-over-year basis. As a group, analysts expect that Roblox Corporation will post -1.49 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on RBLX shares. Wolfe Research set a $100.00 target price on shares of Roblox in a research note on Monday, January 5th. Deutsche Bank Aktiengesellschaft set a $115.00 price target on shares of Roblox in a research note on Tuesday, January 20th. Weiss Ratings reissued a "sell (e+)" rating on shares of Roblox in a report on Monday, December 29th. JPMorgan Chase & Co. dropped their price objective on shares of Roblox from $100.00 to $75.00 and set a "neutral" rating for the company in a report on Friday, February 6th. Finally, DA Davidson initiated coverage on shares of Roblox in a research report on Wednesday, March 4th. They issued a "neutral" rating and a $65.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $117.35.

Insiders Place Their Bets

In other Roblox news, insider Matthew D. Kaufman sold 30,034 shares of the company's stock in a transaction dated Tuesday, February 10th. The shares were sold at an average price of $72.65, for a total transaction of $2,181,970.10. Following the completion of the sale, the insider directly owned 307,263 shares in the company, valued at $22,322,656.95. This represents a 8.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Anthony P. Lee sold 7,000 shares of the firm's stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $82.45, for a total value of $577,150.00. Following the transaction, the director directly owned 256,768 shares in the company, valued at $21,170,521.60. This trade represents a 2.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 703,144 shares of company stock valued at $51,681,640 over the last three months. 12.92% of the stock is currently owned by company insiders.

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.

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