Robinhood Markets (NASDAQ:HOOD) Shares Up 3.8% Following Analyst Upgrade

Robinhood Markets, Inc. (NASDAQ:HOOD) was up 3.8% on Wednesday after Needham & Company LLC raised their price target on the stock from $123.00 to $126.00. Needham & Company LLC currently has a buy rating on the stock. Robinhood Markets traded as high as $103.15 and last traded at $101.93. Approximately 13,700,885 shares were traded during mid-day trading, a decline of 49% from the average daily volume of 26,700,846 shares. The stock had previously closed at $98.21.

A number of other analysts also recently issued reports on HOOD. Evercore assumed coverage on shares of Robinhood Markets in a research report on Monday, October 12th. They set an “outperform” rating and a $130.00 target price for the company. Truist Financial lifted their price target on shares of Robinhood Markets from $130.00 to $134.00 and gave the company a “buy” rating in a research report on Tuesday, October 13th. KeyCorp boosted their price objective on shares of Robinhood Markets from $130.00 to $140.00 and gave the stock an “overweight” rating in a research note on Wednesday, September 30th. Raymond James Financial reissued a “market perform” rating on shares of Robinhood Markets in a research note on Monday, October 5th. Finally, Bank of America lifted their target price on shares of Robinhood Markets from $140.00 to $156.00 and gave the company a “buy” rating in a report on Monday, October 5th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $130.29.

Insider Activity

In other news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the company’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $122.43, for a total value of $1,224,300.00. Following the completion of the transaction, the insider directly owned 509,943 shares in the company, valued at approximately $62,432,321.49. This represents a 1.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven M. Quirk sold 24,416 shares of the firm’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $120.33, for a total transaction of $2,937,977.28. Following the sale, the insider directly owned 77,839 shares of the company’s stock, valued at approximately $9,366,366.87. The trade was a 23.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,089,658 shares of company stock worth $127,966,018 in the last ninety days. 13.48% of the stock is currently owned by company insiders.

More Robinhood Markets News

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

• Positive Sentiment: Rosenblatt Securities initiated coverage with a Buy rating and a $135 price target, calling Robinhood a “generational growth story” and one of the financial sector’s strongest growth opportunities. Robinhood is a generational growth story declares analyst
• Positive Sentiment: Needham raised its price target from $123 to $126 while maintaining a Buy rating. JPMorgan also lifted its target from $103 to $115, although it retained a Neutral rating. These revisions suggest analysts see upside after the stock’s recent pullback.
• Positive Sentiment: Analysts highlighted growth potential from prediction markets, premium subscriptions, cryptocurrency, multi-asset investing, and other products that could reduce Robinhood’s reliance on trading activity. The company has announced more than 15 new products, including AI trading agents, weekend stock trading, and event-based contracts. Robinhood stock rises as analysts see growth beyond its brokerage business
• Positive Sentiment: Investor optimism is also supported by expectations for another earnings beat. Robinhood previously reported quarterly EPS of $0.62 versus a $0.44 consensus estimate, while revenue rose 32.5% year over year to $1.31 billion.
• Neutral Sentiment: Robinhood’s valuation remains demanding, with a reported forward-looking growth profile and a price-to-earnings ratio near 45. The stock’s high beta also indicates that renewed enthusiasm could be accompanied by significant volatility.
• Negative Sentiment: Despite the improving analyst outlook, shares had fallen sharply from their September highs and recently underperformed the broader market. Investors remain concerned about whether trading revenue can continue funding Robinhood’s expanding portfolio of businesses. Robinhood has 13 100 million dollar businesses

Hedge Funds Weigh In On Robinhood Markets

A number of institutional investors and hedge funds have recently added to or reduced their stakes in HOOD. Sumitomo Mitsui Trust Group Inc. increased its position in shares of Robinhood Markets by 10.2% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 6,812,999 shares of the company’s stock worth $472,141,000 after acquiring an additional 632,403 shares during the last quarter. Amundi lifted its stake 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 in the last quarter. Bank of New York Mellon Corp purchased a new position in Robinhood Markets in the second quarter valued at about $379,695,000. Amova Asset Management Americas Inc. boosted 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 last quarter. Finally, Renaissance Technologies LLC grew its stake in Robinhood Markets by 48.6% during the 1st 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 in the last quarter. 93.27% of the stock is owned by hedge funds and other institutional investors.

Robinhood Markets Trading Up 3.8%

The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.23. The business has a 50 day simple moving average of $109.32 and a two-hundred day simple moving average of $96.79. The stock has a market cap of $91.64 billion, a price-to-earnings ratio of 44.90, a price-to-earnings-growth ratio of 1.88 and a beta of 2.35.

Robinhood Markets (NASDAQ:HOOD) last announced its earnings results on Wednesday, July 29th. The company reported $0.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.44 by $0.18. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%. The company had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same period in the prior year, the company posted $0.42 EPS. Robinhood Markets’s quarterly revenue was up 32.5% on a year-over-year basis. As a group, equities analysts anticipate that Robinhood Markets, Inc. will post 2.15 EPS for the current 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.