Northwestern Mutual Wealth Management Co. Grows Holdings in Roblox Corporation $RBLX

Key Points

• Northwestern Mutual Wealth Management Co. boosted its Roblox stake by 847.1% in the fourth quarter, ending with 80,108 shares worth about $6.49 million.
• Roblox continues to attract heavy institutional ownership, with firms like Vanguard and State Street also increasing holdings; overall, 94.46% of the stock is held by hedge funds and other institutions.
• The company recently announced a $3 billion share buyback authorization, while analysts remain mixed with a Hold consensus and a target price of $87.07.

Northwestern Mutual Wealth Management Co. raised its position in Roblox Corporation (NYSE:RBLX - Free Report) by 847.1% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 80,108 shares of the company's stock after purchasing an additional 71,650 shares during the period. Northwestern Mutual Wealth Management Co.'s holdings in Roblox were worth $6,491,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in RBLX. Vanguard Group Inc. lifted its holdings in Roblox by 5.6% in the 3rd quarter. Vanguard Group Inc. now owns 62,437,998 shares of the company's stock valued at $8,648,911,000 after purchasing an additional 3,284,073 shares in the last quarter. State Street Corp lifted its holdings in Roblox by 11.0% in the 3rd quarter. State Street Corp now owns 13,369,844 shares of the company's stock valued at $1,851,991,000 after purchasing an additional 1,326,575 shares in the last quarter. Assenagon Asset Management S.A. lifted its holdings in Roblox by 342.6% in the 4th quarter. Assenagon Asset Management S.A. now owns 1,551,456 shares of the company's stock valued at $125,714,000 after purchasing an additional 1,200,900 shares in the last quarter. Durable Capital Partners LP lifted its holdings in Roblox by 32.4% in the 2nd quarter. Durable Capital Partners LP now owns 4,588,728 shares of the company's stock valued at $482,734,000 after purchasing an additional 1,122,153 shares in the last quarter. Finally, Invesco Ltd. lifted its holdings in Roblox by 48.9% in the 3rd quarter. Invesco Ltd. now owns 2,625,710 shares of the company's stock valued at $363,713,000 after purchasing an additional 862,754 shares in the last quarter. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: One recent bullish view argues Roblox is evolving into an AI-enabled entertainment platform, with creator tools helping boost content production and user engagement, which could support long-term bookings and monetization. Roblox: The Scarce Entertainment Asset In An AI-Abundant World
• Neutral Sentiment: Analysts and commentators also noted that Roblox remains a debated story, with some saying the investment case depends on assumptions that may be hard to prove near term. Roblox: Investment Case Relies On Unreliable Assumptions
• Negative Sentiment: CEO David Baszucki sold 50,628 shares, CFO Naveen K. Chopra sold 16,863 shares, and several other insiders also sold shares in filings dated May 20–21. While the company said these were largely to cover tax withholding from vesting awards, the cluster of sales can still weigh on sentiment.
• Negative Sentiment: Additional commentary flagged near-term growth headwinds from age verification and moderation-related changes, which have softened DAU, engagement, and bookings trends even as Roblox works on new kids’ accounts and broader 18+ monetization. Roblox: Reset Triggers Robust 18+ Cohort Monetization Opportunities

Analysts Set New Price Targets

RBLX has been the topic of a number of recent research reports. Canaccord Genuity Group reduced their target price on shares of Roblox from $140.00 to $80.00 and set a "buy" rating on the stock in a report on Friday, May 1st. TD Cowen raised shares of Roblox from a "sell" rating to a "hold" rating and dropped their price objective for the company from $54.00 to $49.00 in a research note on Friday, May 1st. Morgan Stanley reaffirmed an "overweight" rating and set a $62.00 price objective on shares of Roblox in a research note on Friday, May 1st. Freedom Capital raised shares of Roblox from a "hold" rating to a "strong-buy" rating in a research note on Friday, February 6th. Finally, Jefferies Financial Group downgraded shares of Roblox from a "hold" rating to a "hold" rating in a research note on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $87.07.

Insider Activity

In related news, CAO Amy Marie Rawlings sold 2,895 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $45.24, for a total transaction of $130,969.80. Following the completion of the sale, the chief accounting officer owned 35,238 shares of the company's stock, valued at approximately $1,594,167.12. This represents a 7.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Matthew D. Kaufman sold 14,356 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $45.27, for a total transaction of $649,896.12. Following the sale, the insider directly owned 349,964 shares of the company's stock, valued at approximately $15,842,870.28. This trade represents a 3.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 178,453 shares of company stock worth $8,696,984. Insiders own 10.05% of the company's stock.

Roblox Trading Up 4.5%

NYSE RBLX opened at $48.23 on Friday. The company has a 50-day moving average of $53.56 and a 200-day moving average of $71.53. The company has a market cap of $32.39 billion, a P/E ratio of -30.53 and a beta of 1.50. Roblox Corporation has a 12 month low of $40.15 and a 12 month high of $150.59. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89.

Roblox (NYSE:RBLX - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.41) by $0.06. The firm had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.74 billion. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The company's revenue was up 43.4% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.32) EPS. As a group, equities analysts predict that Roblox Corporation will post -1.4 earnings per share for the current year.

Roblox announced that its board has initiated a share buyback program on Tuesday, May 19th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the company to buy up to 9.5% of its shares through open market purchases. Shares buyback programs are often an indication that the company's board believes its shares are undervalued.

Roblox Profile

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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