Robinhood Markets (NASDAQ:HOOD) Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded Robinhood from “strong buy” to “hold,” though analyst sentiment remains broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $126.45.
• Robinhood reported quarterly EPS of $0.60, beating the $0.56 estimate, while revenue of $1.42 billion came in below forecasts; revenue rose 11.5% year over year.
• Crypto revenue fell 55% in the third quarter, raising near-term growth concerns, although tokenized-stock adoption and potential customer interest in regulated crypto platforms could offer offsets.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Monday, Zacks reports.

Several other research firms have also commented on HOOD. Evercore began coverage on shares of Robinhood Markets in a report on Monday, October 12th. They issued an "outperform" rating and a $130.00 target price on the stock. Bank of America upped their price target on shares of Robinhood Markets from $140.00 to $156.00 and gave the stock a "buy" rating in a report on Monday, October 5th. Loop Capital set a $135.00 price target on shares of Robinhood Markets in a research report on Tuesday, September 29th. Needham & Company LLC decreased their price objective on shares of Robinhood Markets from $126.00 to $116.00 and set a "buy" rating on the stock in a research note on Wednesday, October 28th. Finally, Morgan Stanley boosted their price objective on shares of Robinhood Markets from $150.00 to $160.00 and gave the company an "overweight" rating in a research report on Friday, October 9th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $126.45.

Robinhood Markets Price Performance

Shares of NASDAQ HOOD opened at $85.68 on Monday. The business has a fifty day moving average price of $107.65 and a two-hundred day moving average price of $92.69. The stock has a market capitalization of $77.03 billion, a PE ratio of 39.48, a P/E/G ratio of 1.82 and a beta of 2.56. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.24 and a quick ratio of 1.24. Robinhood Markets has a fifty-two week low of $63.51 and a fifty-two week high of $144.77.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released its earnings results on Wednesday, October 28th. The company reported $0.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.04. Robinhood Markets had a return on equity of 21.49% and a net margin of 39.04%. The company had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.44 billion. During the same period in the prior year, the firm posted $0.61 EPS. Robinhood Markets's quarterly revenue was up 11.5% on a year-over-year basis. As a group, equities analysts predict that Robinhood Markets will post 2.11 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Baiju Bhatt sold 50,912 shares of the company's stock in a transaction that occurred on Wednesday, October 21st. The shares were sold at an average price of $101.40, for a total transaction of $5,162,476.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $113.71, for a total transaction of $1,137,100.00. Following the completion of the transaction, the insider directly owned 499,943 shares of the company's stock, valued at approximately $56,848,518.53. The trade was a 1.96% 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. Insiders sold a total of 1,081,347 shares of company stock worth $127,543,680 in the last quarter. Corporate insiders own 13.48% of the company's stock.

Institutional Trading of Robinhood Markets

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Sumitomo Mitsui Trust Group Inc. boosted its holdings 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 purchasing an additional 632,403 shares during the period. Amundi increased its holdings in Robinhood Markets by 89.0% during the 1st quarter. Amundi now owns 6,385,232 shares of the company's stock valued at $442,497,000 after purchasing an additional 3,007,103 shares during the period. Amova Asset Management Americas Inc. increased its holdings in Robinhood Markets by 15.0% during the 1st 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. Renaissance Technologies LLC increased its holdings 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 during the period. Finally, Bank of New York Mellon Corp bought a new position in Robinhood Markets during the 2nd quarter valued at approximately $379,695,000. Institutional investors own 93.27% of the company's stock.

More Robinhood Markets News

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

• Positive Sentiment: A $6.3 billion Binance hack may steer some crypto investors toward regulated platforms. Goldman Sachs said that a flight to safety could benefit Robinhood, alongside Coinbase and BitGo. Goldman Sachs names stock winners and losers after $6.3 bln Binance heist
• Positive Sentiment: Tokenized stocks from Robinhood and other platforms have attracted $130.5 million in DeFi deposits, an encouraging sign of adoption for this emerging business area. Tokenized stocks from Robinhood, Binance, and Coinbase attract $130.5M in DeFi deposits
• Neutral Sentiment: Robinhood is competing for a larger retail allocation in Anthropic’s anticipated IPO. Access could attract customers and trading activity, but the CFO described the brokerage scramble for shares as a “food fight,” underscoring uncertainty about allocations. Robinhood in a “Food Fight” for Anthropic IPO Shares as Crypto Trading Cools
• Negative Sentiment: An analyst downgrade added pressure on the shares. Robinhood Markets Stock Falls 1.4% on Analyst Downgrade
• Negative Sentiment: Crypto revenue fell 55% in the third quarter, while overall revenue growth slowed to 12%. The cooling crypto business raises concerns about near-term growth, even as Robinhood expands into other products. Robinhood in a “Food Fight” for Anthropic IPO Shares as Crypto Trading Cools

Robinhood Markets Company Profile

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.

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