Robinhood Markets (NASDAQ:HOOD) Shares Climb 1.8% After Analyst Upgrade

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) rose 1.8% during mid-day trading on Tuesday after JPMorgan Chase & Co. raised their price target on the stock from $103.00 to $115.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Robinhood Markets traded as high as $101.10 and last traded at $98.21. 13,815,825 shares traded hands during mid-day trading, a decline of 48% from the average session volume of 26,764,877 shares. The stock had previously closed at $96.52.

HOOD has been the topic of several other reports. Citizens Jmp lifted their target price on Robinhood Markets from $155.00 to $165.00 and gave the company a “market outperform” rating in a research note on Friday, September 11th. BTIG Research upped their price target on Robinhood Markets from $125.00 to $135.00 and gave the stock a “buy” rating in a research note on Tuesday, September 29th. Deutsche Bank Aktiengesellschaft decreased their price target on Robinhood Markets from $138.00 to $134.00 and set a “buy” rating for the company in a report on Tuesday, September 29th. Evercore began coverage on Robinhood Markets in a report on Monday, October 12th. They set an “outperform” rating and a $130.00 price target for the company. Finally, Mizuho lifted their price objective on shares of Robinhood Markets from $130.00 to $140.00 and gave the company an “outperform” rating in a research report on Wednesday, September 9th. Two analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $130.05.

Insider Activity at Robinhood Markets

In other news, Director Baiju Bhatt sold 50,317 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $96.80, for a total transaction of $4,870,685.60. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven Quirk sold 24,416 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $120.33, for a total value of $2,937,977.28. Following the completion of the sale, the insider directly owned 77,839 shares of the company’s stock, valued at $9,366,366.87. This represents a 23.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,089,658 shares of company stock worth $127,966,018 in the last three months. 13.48% of the stock is currently owned by corporate insiders.

More Robinhood Markets News

Here are the key news stories impacting Robinhood Markets this week:

• Positive Sentiment: Earnings expectations are supportive: Zacks and Yahoo Finance report that Robinhood has factors pointing to a potential earnings beat, including favorable estimate revisions and operating momentum. A beat could reinforce confidence in the company’s growth trajectory. Robinhood Expected to Beat Earnings Estimates
• Positive Sentiment: JPMorgan raised its price target: JPMorgan increased its target for HOOD from $103 to $115 while maintaining a Neutral rating. The higher target reflects improved expectations, even though the analyst is not yet recommending the stock outright. JPMorgan Raises Robinhood Price Target
• Positive Sentiment: Business diversification continues: Robinhood has introduced more than 15 products, including AI trading agents, weekend stock trading and contracts linked to company metrics. The company’s prediction-market business has reportedly grown roughly tenfold, supporting the view that Robinhood is evolving beyond a traditional brokerage. Robinhood Has 13 $100M Businesses
• Neutral Sentiment: Regulatory uncertainty surrounds prediction markets: A legal dispute involving Novig and Crypto.com over Missouri sports-wagering rules highlights the broader regulatory challenges facing prediction-market operators. The outcome could influence the environment for Robinhood’s expansion in this area. Prediction Market Regulatory Dispute
• Negative Sentiment: Valuation and growth concerns remain: Robinhood trades at a premium earnings multiple, making the stock dependent on continued strong revenue, deposits and user growth. Analysts warn that a slowdown could pressure the shares, while recent weakness occurred even as the broader market advanced. What Happens if Robinhood Growth Stalls

Institutional Investors Weigh In On Robinhood Markets

A number of hedge funds and other institutional investors have recently bought and sold shares of HOOD. Sumitomo Mitsui Trust Group Inc. increased its stake in shares of Robinhood Markets by 10.2% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 6,812,999 shares of the company’s stock valued at $472,141,000 after acquiring an additional 632,403 shares during the last quarter. Amundi boosted its position in shares of Robinhood Markets by 89.0% in the first quarter. Amundi now owns 6,385,232 shares of the company’s stock worth $442,497,000 after acquiring an additional 3,007,103 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Robinhood Markets in the second quarter worth approximately $379,695,000. Amova Asset Management Americas Inc. grew its holdings in Robinhood Markets by 15.0% in the first quarter. Amova Asset Management Americas Inc. now owns 5,240,796 shares of the company’s stock valued at $362,925,000 after purchasing an additional 685,041 shares during the period. Finally, Renaissance Technologies LLC grew its holdings in Robinhood Markets by 48.6% in the first quarter. Renaissance Technologies LLC now owns 5,104,137 shares of the company’s stock valued at $353,717,000 after purchasing an additional 1,668,400 shares during the period. Institutional investors and hedge funds own 93.27% of the company’s stock.

Robinhood Markets Trading Up 1.8%

The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.23. The business’s fifty day moving average is $109.25 and its 200-day moving average is $96.60. The stock has a market capitalization of $88.30 billion, a PE ratio of 43.26, a P/E/G ratio of 1.93 and a beta of 2.35.

Robinhood Markets (NASDAQ:HOOD) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.62 earnings per share for the quarter, topping analysts’ consensus estimates 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 net margin of 42.01% and a return on equity of 22.43%. Robinhood Markets’s revenue was up 32.5% on a year-over-year basis. During the same quarter last year, the firm posted $0.42 earnings per share. As a group, analysts anticipate that Robinhood Markets, Inc. will post 2.15 EPS for the current fiscal year.

About Robinhood Markets

Robinhood Markets, Inc is a financial services company that operates a digital brokerage platform. Founded in 2013 by Vlad Tenev and Baiju Bhatt, the company became known for offering commission-free trading and a mobile-first investing experience designed to broaden access to financial markets.

Through its platform, Robinhood provides brokerage services for stocks, exchange-traded funds, options and other investments. Its offerings also include cryptocurrency trading, individual retirement accounts, margin investing, cash management services and Robinhood Gold, a subscription-based product that provides additional features and benefits.