Robinhood Markets (NASDAQ:HOOD) Given New $115.00 Price Target at The Goldman Sachs Group

Key Points

• Goldman Sachs cut its Robinhood price target from $128 to $115 but maintained a Buy rating; the new target implies about 48.6% upside from the cited share price.
• Analyst sentiment remains broadly positive: MarketBeat reports a Moderate Buy consensus and an average price target of $124.01.
• Robinhood’s latest quarterly EPS of $0.60 beat estimates of $0.56, while revenue of $1.42 billion fell short of consensus and increased 11.5% year over year.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) had its target price reduced by equities research analysts at The Goldman Sachs Group from $128.00 to $115.00 in a research note issued to investors on Friday, Benzinga reports. The firm currently has a "buy" rating on the stock. The Goldman Sachs Group's target price would suggest a potential upside of 48.55% from the company's current price.

Several other research analysts also recently commented on HOOD. Keefe, Bruyette & Woods raised their price target on shares of Robinhood Markets from $100.00 to $115.00 and gave the stock a "market perform" rating in a research note on Tuesday, September 29th. Piper Sandler reissued an "overweight" rating and issued a $145.00 price objective (up from $135.00) on shares of Robinhood Markets in a research report on Wednesday, September 2nd. Weiss Ratings reissued a "hold (c)" rating on shares of Robinhood Markets in a research note on Monday, September 21st. Mizuho raised their price objective on Robinhood Markets from $130.00 to $140.00 and gave the stock an "outperform" rating in a report on Wednesday, September 9th. Finally, Deutsche Bank decreased their target price on Robinhood Markets from $138.00 to $134.00 and set a "buy" rating for the company in a research report on Tuesday, September 29th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $124.01.

Robinhood Markets Trading Down 4.8%

NASDAQ:HOOD traded down $3.93 during mid-day trading on Friday, hitting $77.42. 7,222,252 shares of the stock traded hands, compared to its average volume of 26,127,744. The stock has a market capitalization of $69.71 billion, a price-to-earnings ratio of 35.49, a PEG ratio of 1.88 and a beta of 2.56. Robinhood Markets has a 52 week low of $63.51 and a 52 week high of $139.75. The firm's 50 day moving average is $104.19 and its two-hundred day moving average is $91.82. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 0.26.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last announced its quarterly earnings data 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 net margin of 39.04% and a return on equity of 21.49%. The business had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $1.44 billion. During the same quarter last year, the firm earned $0.61 earnings per share. The firm's quarterly revenue was up 11.5% compared to the same quarter last year. On average, equities research analysts predict that Robinhood Markets will post 2.10 earnings per share for the current year.

Insider Activity at Robinhood Markets

In other news, CEO Vladimir Tenev sold 375,000 shares of the company's stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $113.72, for a total transaction of $42,645,000.00. Following the transaction, the chief executive officer owned 375,000 shares in the company, valued at $42,645,000. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven M. Quirk sold 24,416 shares of the stock in a transaction that occurred 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 completion of the transaction, the insider directly owned 77,839 shares of the company's stock, valued at $9,366,366.87. The trade was a 23.88% decrease in their ownership of the stock. 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 1,045,503 shares of company stock worth $123,905,130 over the last ninety days. Corporate insiders own 13.48% of the company's stock.

Institutional Trading of Robinhood Markets

Several large investors have recently bought and sold shares of HOOD. State Street Corp increased its position in shares of Robinhood Markets by 0.6% in the 3rd quarter. State Street Corp now owns 34,865,341 shares of the company's stock valued at $3,922,351,000 after acquiring an additional 194,193 shares during the period. Amundi lifted its position in Robinhood Markets by 89.0% during the 1st 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 period. Bank of New York Mellon Corp acquired a new stake in Robinhood Markets during the 2nd quarter worth about $379,695,000. Amova Asset Management Americas Inc. lifted its position 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 worth $362,925,000 after acquiring an additional 685,041 shares during the period. 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 during the last quarter. Hedge funds and other institutional investors own 93.27% of the company's stock.

Key Stories Impacting Robinhood Markets

Investors following HOOD have been watching these stories:

• Positive Sentiment: Funded customers reached 28.9 million, up roughly 130,000 from September and 1.8 million year over year, indicating continued user growth. Article: HOOD Stock Drops Overnight Amid Bitcoin Weakness
• Negative Sentiment: Despite customer growth, platform assets slipped 3% month over month, a mixed signal for assets and activity on the platform. Article: Robinhood's funded customers increase as platform assets slip
• Negative Sentiment: Louisiana’s attorney general sued Robinhood and other platforms over prediction markets, raising a potential regulatory overhang for the event-contract business that is otherwise growing quickly. Article: Louisiana AG sues platforms over prediction markets

Robinhood Markets Company Profile

Robinhood Markets, Inc. operates a digital financial services platform that gives customers access to investing and financial products through its website and mobile app. Its offerings include trading in stocks, exchange-traded funds, options and cryptocurrencies, as well as retirement accounts and cash-management services. Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood built its business around making financial services more accessible through a mobile-first platform. The company is headquartered in Menlo Park, California, and serves customers in the United States and select international markets.

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