Robinhood Markets (NASDAQ:HOOD) Stock Bumped Up to "Hold" by Wall Street Zen

Key Points

• Wall Street Zen upgraded Robinhood Markets from “Sell” to “Hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $130.29.
• Robinhood reported quarterly earnings of $0.62 per share, beating estimates of $0.44, while revenue rose 32.5% year over year to $1.31 billion.
• Insiders sold $128.4 million of shares over the past 90 days, although institutional investors remain heavily invested, owning 93.27% of the company.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a report released on Saturday, Wall Street Zen reports.

A number of other research analysts also recently issued reports on HOOD. CICC Research upped their target price on shares of Robinhood Markets from $100.00 to $110.00 and gave the company an "outperform" rating in a research report on Friday, July 31st. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Robinhood Markets in a research report on Monday, September 21st. Cantor Fitzgerald restated an "overweight" rating on shares of Robinhood Markets in a report on Tuesday, September 15th. Piper Sandler restated an "overweight" rating and issued a $145.00 target price (up from $135.00) on shares of Robinhood Markets in a research note on Wednesday, September 2nd. Finally, Jefferies Financial Group increased their price objective on shares of Robinhood Markets from $127.00 to $140.00 and gave the stock a "buy" rating in a research note on Tuesday, September 8th. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $130.29.

Robinhood Markets Price Performance

Shares of Robinhood Markets stock opened at $95.07 on Friday. The stock has a market capitalization of $85.48 billion, a price-to-earnings ratio of 41.88, a P/E/G ratio of 1.92 and a beta of 2.35. Robinhood Markets has a 1-year low of $63.51 and a 1-year high of $150.47. The firm's 50-day moving average price is $109.40 and its two-hundred day moving average price is $97.21. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.23.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $0.62 earnings per share 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 firm had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.29 billion. During the same period last year, the firm posted $0.42 EPS. The business's revenue was up 32.5% on a year-over-year basis. On average, equities analysts predict that Robinhood Markets will post 2.19 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Vladimir Tenev sold 375,000 shares of the stock in a transaction that occurred on Monday, October 5th. The stock was 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 approximately $42,645,000. This trade represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven Quirk sold 24,416 shares of Robinhood Markets stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $120.33, for a total value of $2,937,977.28. Following 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 position. 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 1,091,347 shares of company stock valued at $128,447,880 in the last ninety days. 13.48% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Sumitomo Mitsui Trust Group Inc. raised its position in shares of Robinhood Markets by 10.2% in 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 buying an additional 632,403 shares in the last quarter. Amundi raised its stake in shares of Robinhood Markets by 89.0% during the first quarter. Amundi now owns 6,385,232 shares of the company's stock valued at $442,497,000 after acquiring an additional 3,007,103 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in Robinhood Markets during the 2nd quarter worth about $379,695,000. Amova Asset Management Americas Inc. lifted its stake in shares of 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 worth $362,925,000 after acquiring an additional 685,041 shares during the period. Finally, Renaissance Technologies LLC boosted its stake in shares of Robinhood Markets by 48.6% in 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. Institutional investors and hedge funds own 93.27% of the company's stock.

Key Headlines Impacting Robinhood Markets

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

• Positive Sentiment: Analyst support: Rosenblatt Securities initiated coverage with a Buy rating and a $135 price target, while other analysts have raised price targets or upgraded the shares. The bullish views reflect confidence in Robinhood’s growth prospects and diversified business model. Rosenblatt initiates coverage
• Positive Sentiment: Dubai expansion: Robinhood received authorization to offer stock and cryptocurrency trading in Dubai and plans a Middle Eastern launch in 2027. The move could expand its addressable market and add a new international growth channel. Robinhood Dubai license
• Positive Sentiment: Broader product ecosystem: Robinhood is expanding beyond traditional brokerage through prediction markets, cryptocurrency perpetual futures, tokenized assets and its advisor-services platform. Reported increases in bitcoin, gold and other prediction-market activity could support transaction revenue and customer engagement. Robinhood prediction markets
• Positive Sentiment: Robinhood stock tokens becoming eligible as collateral on Morpho could improve the utility of tokenized securities and strengthen the company’s blockchain strategy. Robinhood stock tokens on Morpho
• Neutral Sentiment: Investors are focused on Robinhood’s third-quarter results, scheduled for October 27. Forecasts emphasize trading activity, net deposits, recurring revenue and crypto volumes as key indicators of whether the company’s multiproduct strategy is translating into sustained earnings growth. Robinhood earnings preview
• Negative Sentiment: Crypto-revenue risk: Robinhood’s crypto revenue reportedly fell 38% year over year to $100 million in the second quarter, marking a third consecutive quarterly decline. A potential rebound in late-quarter activity may not fully offset the weakness. Robinhood crypto revenue
• Negative Sentiment: Director Baiju Bhatt sold 50,912 shares worth approximately $5.16 million under a pre-arranged Rule 10b5-1 plan. Because the sale was scheduled in advance, it is not necessarily a signal of deteriorating fundamentals, but it can weigh on sentiment.

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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