Deutsche Bank Aktiengesellschaft Has Lowered Expectations for Robinhood Markets (NASDAQ:HOOD) Stock Price

Key Points

• Deutsche Bank lowered Robinhood’s price target from $138 to $134 but maintained a Buy rating, implying 14.71% upside from the previous close. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $132.83.
• Robinhood shares traded around $116.82, while the company’s latest results exceeded expectations: EPS was $0.62 versus a $0.44 estimate, and revenue rose 32.5% year over year to $1.31 billion.
• Insiders have been selling shares: executives sold 1.12 million shares worth approximately $132.7 million over the past 90 days, while institutional investors still own 93.27% of the company.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) had its price target dropped by research analysts at Deutsche Bank Aktiengesellschaft from $138.00 to $134.00 in a research report issued on Tuesday, Benzinga reports. The firm presently has a "buy" rating on the stock. Deutsche Bank Aktiengesellschaft's price objective would suggest a potential upside of 14.71% from the stock's previous close.

HOOD has been the topic of several other research reports. Cantor Fitzgerald reiterated an "overweight" rating on shares of Robinhood Markets in a report on Tuesday, September 15th. Scotiabank started coverage on shares of Robinhood Markets in a report on Wednesday, September 2nd. They set a "sector outperform" rating and a $136.00 target price on the stock. Morgan Stanley lowered shares of Robinhood Markets from an "overweight" rating to an "outperform" rating in a research note on Tuesday. Benchmark upgraded shares of Robinhood Markets to a "strong-buy" rating in a report on Wednesday, September 9th. Finally, China Renaissance initiated coverage on shares of Robinhood Markets in a research report on Tuesday, July 7th. They set a "buy" rating for the company. Two investment analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, Robinhood Markets has an average rating of "Moderate Buy" and a consensus target price of $132.83.

Robinhood Markets Trading Up 0.3%

HOOD traded up $0.36 during mid-day trading on Tuesday, hitting $116.82. The stock had a trading volume of 3,077,237 shares, compared to its average volume of 27,265,959. The stock's fifty day simple moving average is $105.03 and its 200-day simple moving average is $92.80. The firm has a market capitalization of $105.03 billion, a price-to-earnings ratio of 51.52, a price-to-earnings-growth ratio of 2.38 and a beta of 2.34. Robinhood Markets has a 1-year low of $63.51 and a 1-year high of $153.86. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.22 and a quick ratio of 1.22.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued 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. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%.The business had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter last year, the business posted $0.42 EPS. The firm's revenue was up 32.5% compared to the same quarter last year. As a group, research analysts forecast that Robinhood Markets will post 2.15 EPS for the current fiscal year.

Insider Activity at Robinhood Markets

In other news, CFO Shiv Verma sold 11,472 shares of Robinhood Markets stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $110.42, for a total value of $1,266,738.24. Following the sale, the chief financial officer directly owned 56,858 shares in the company, valued at $6,278,260.36. This trade represents a 16.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Tenev sold 375,000 shares of the firm's stock in a transaction on Monday, July 6th. The shares were 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 of the company's stock, valued at approximately $43,563,750. This trade represents a 50.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 1,121,121 shares of company stock worth $132,674,478. 13.48% of the stock is currently owned by corporate insiders.

Institutional Trading of Robinhood Markets

Several institutional investors and hedge funds have recently bought and sold shares of the stock. MV Capital Management Inc. acquired a new position in shares of Robinhood Markets during the 4th quarter worth approximately $27,000. C M Bidwell & Associates Ltd. bought a new position in shares of Robinhood Markets in the second quarter valued at $27,000. Glen Eagle Advisors LLC grew its stake in shares of Robinhood Markets by 812.9% in the fourth quarter. Glen Eagle Advisors LLC now owns 283 shares of the company's stock valued at $32,000 after buying an additional 252 shares in the last quarter. SHP Wealth Management acquired a new position in Robinhood Markets during the fourth quarter worth $32,000. Finally, Copos Capital S.a r.l. bought a new stake in Robinhood Markets during the fourth quarter worth $33,000. Institutional investors own 93.27% of the company's stock.

Key Robinhood Markets News

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

• Positive Sentiment: Analysts raise price targets: Goldman Sachs lifted its target to $145 from $144 while maintaining a Buy rating. BTIG also raised its target to $135 from $125 and reiterated Buy, citing September trading metrics that point to a solid third quarter. Goldman Sachs target BTIG target and trading metrics
• Positive Sentiment: Trading trends remain supportive: BTIG said month-to-date September volumes reinforce expectations for a strong quarter, potentially benefiting transaction revenue and earnings. Robinhood’s latest reported quarter also featured revenue growth of 32.5% year over year and an EPS beat.
• Positive Sentiment: Expansion beyond trading: Morgan Stanley highlighted Robinhood’s on-chain initiatives as a growth opportunity beyond crypto trading. Management is also positioning trading as a customer-acquisition engine for wealth management and longer-term asset retention, which could create steadier recurring revenue. Morgan Stanley on Robinhood’s on-chain strategy
• Neutral Sentiment: Ratings remain divided: Keefe, Bruyette & Woods raised its target to $115 from $100 but kept a Market Perform rating, implying limited upside at recent levels. The average Wall Street recommendation remains equivalent to Buy, though the article cautions that optimistic analyst ratings may have limited predictive value. KBW target
• Neutral Sentiment: New IPO role: Robinhood is an underwriter for Oura’s proposed $15 billion-plus IPO, its first such role. The deal could strengthen Robinhood’s investment-banking and retail-distribution profile, but its direct financial impact is likely modest initially.
• Negative Sentiment: Macro headwinds: Rising oil prices, inflation concerns, and higher yields are pressuring rate-sensitive fintech stocks, including Robinhood, and could weigh on trading activity or investor risk appetite. Fintech pressure from rising yields
• Negative Sentiment: Valuation risk: At a market capitalization above $100 billion and a forward-looking growth story already reflected in the share price, investors may demand continued strong execution. Rothschild & Co. Reburn maintained a Sell rating and raised its target only to $85 from $80.

Robinhood Markets Company Profile

Robinhood Markets, Inc NASDAQ: HOOD operates a financial services platform designed to provide investing and trading products through mobile applications and a website. Its offerings include commission-free trading in stocks and exchange-traded funds, options trading, cryptocurrency services, margin investing, and retirement accounts. The company also provides cash management features and other tools intended to help customers manage and invest their money.

Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood gained prominence by expanding access to investing through a low-cost, easy-to-use digital platform.

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