Robinhood Markets, Inc. (NASDAQ:HOOD – Get Free Report) has been given a consensus recommendation of “Moderate Buy” by the twenty-seven ratings firms that are covering the stock, MarketBeat.com reports. Four investment analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $122.6667.
Several equities analysts recently weighed in on the stock. The Goldman Sachs Group cut their price target on shares of Robinhood Markets from $137.00 to $118.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. China Renaissance initiated coverage on shares of Robinhood Markets in a research note on Tuesday, July 7th. They issued a “buy” rating on the stock. Cantor Fitzgerald reduced their target price on shares of Robinhood Markets from $130.00 to $115.00 and set an “overweight” rating for the company in a report on Monday, August 3rd. Morgan Stanley upgraded shares of Robinhood Markets from an “equal weight” rating to an “overweight” rating and boosted their target price for the company from $124.00 to $150.00 in a research report on Tuesday. Finally, Needham & Company LLC cut their price target on Robinhood Markets from $123.00 to $120.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th.
Read Our Latest Report on HOOD
Key Headlines Impacting Robinhood Markets
- Positive Sentiment: Morgan Stanley upgraded Robinhood to Overweight from Equal Weight and raised its price target to $150 from $124. Analyst Michael Cyprys cited a long growth runway and the potential for Robinhood to generate more revenue from its existing customer base through prediction markets, expanded products and higher engagement. Morgan Stanley Just Upgraded Robinhood Markets
- Positive Sentiment: Scotiabank initiated coverage with a Sector Outperform rating and a $136 price target, adding another favorable Wall Street view and reinforcing expectations for further upside.
- Positive Sentiment: Robinhood’s blockchain initiatives are showing early traction. Robinhood Chain’s tokenized value reportedly surpassed $88 million shortly after its mainnet launch, while the platform recorded approximately $390 million in trading volume. Robinhood was also reported to lead the stock-token market by market capitalization, supporting the investment case for a broader digital-asset ecosystem. Robinhood Chain total tokenized value surpasses $88M
- Positive Sentiment: Investors are also focused on prediction markets, new trading products and Robinhood Banking growth. These offerings could diversify revenue away from transaction-based crypto activity and increase customer monetization. Robinhood will present at the Goldman Sachs Communacopia + Technology Conference on September 9, potentially providing additional product and growth updates. Robinhood to Present at Goldman Sachs Conference
- Neutral Sentiment: Artisan Partners identified Robinhood as an attractive investment, reflecting institutional interest in the company’s growth strategy. However, the stock’s elevated valuation and high beta leave it sensitive to execution risks, market volatility and changes in crypto or retail-trading activity. What Makes Robinhood Markets an Attractive Bet
Insider Buying and Selling
In other news, CEO Vladimir Tenev sold 375,000 shares of the firm’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $116.17, for a total transaction of $43,563,750.00. Following the completion of the transaction, the chief executive officer directly owned 375,000 shares in the company, valued at $43,563,750. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Meyer Malka purchased 250,000 shares of the company’s stock in a transaction on Friday, June 5th. The stock was acquired at an average price of $80.74 per share, with a total value of $20,185,000.00. Following the purchase, the director owned 3,924,427 shares of the company’s stock, valued at approximately $316,858,235.98. This represents a 6.80% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders sold a total of 591,867 shares of company stock valued at $64,907,806 in the last ninety days. Company insiders own 13.48% of the company’s stock.
Institutional Inflows and Outflows
A number of hedge funds have recently made changes to their positions in HOOD. CYBER HORNET ETFs LLC grew its holdings in Robinhood Markets by 527.8% in the 4th quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company’s stock valued at $26,000 after buying an additional 190 shares during the period. MV Capital Management Inc. acquired a new stake in Robinhood Markets in the fourth quarter valued at approximately $27,000. Swiss RE Ltd. acquired a new stake in shares of Robinhood Markets during the fourth quarter valued at about $27,000. Elyxium Wealth LLC acquired a new stake in Robinhood Markets during the 4th quarter valued at approximately $27,000. Finally, Cornerstone Planning Group LLC lifted its holdings in Robinhood Markets by 90.1% during the 4th quarter. Cornerstone Planning Group LLC now owns 268 shares of the company’s stock worth $28,000 after buying an additional 127 shares during the last quarter. Hedge funds and other institutional investors own 93.27% of the company’s stock.
Robinhood Markets Price Performance
Robinhood Markets stock opened at $106.99 on Friday. The firm has a 50-day moving average price of $101.64 and a 200-day moving average price of $87.67. The firm has a market capitalization of $96.19 billion, a PE ratio of 47.13, a price-to-earnings-growth ratio of 2.13 and a beta of 2.34. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.23. Robinhood Markets has a 12-month low of $63.51 and a 12-month high of $153.86.
Robinhood Markets (NASDAQ:HOOD – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The company reported $0.62 EPS for the quarter, topping the consensus estimate of $0.44 by $0.18. The company had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.29 billion. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%.Robinhood Markets’s quarterly revenue was up 32.5% on a year-over-year basis. During the same period last year, the business posted $0.42 EPS. As a group, equities research analysts forecast that Robinhood Markets will post 2.07 EPS for the current year.
About Robinhood Markets
Robinhood Markets, Inc (NASDAQ: HOOD) is a U.S.-based financial services company best known for its mobile-first brokerage platform that aims to “democratize finance for all.” Founded in 2013 by Vladimir Tenev and Baiju Bhatt and headquartered in Menlo Park, California, the company built early traction by offering commission-free trading and a simplified user experience that attracted a large base of retail investors.
Robinhood’s core products and services include a mobile app and web platform for trading U.S.
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