Robinhood Markets (NASDAQ:HOOD) Stock Gets Price Target Bump from Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods raised Robinhood’s price target from $100 to $115 while maintaining a “market perform” rating, implying approximately 1.25% downside from the reported share price.
• Analyst sentiment remains favorable overall, with Robinhood carrying a “Moderate Buy” consensus rating and a $133 average price target. Goldman Sachs also raised its target to $142.
• Robinhood exceeded quarterly expectations, reporting $0.62 in EPS versus $0.44 forecast and $1.31 billion in revenue, up 32.5% year over year. However, insiders sold more than 1.1 million shares worth approximately $132.7 million during the quarter.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) had its price objective increased by equities research analysts at Keefe, Bruyette & Woods from $100.00 to $115.00 in a report issued on Tuesday, Benzinga reports. The firm currently has a "market perform" rating on the stock. Keefe, Bruyette & Woods' price objective indicates a potential downside of 1.25% from the company's current price.

Several other brokerages also recently issued reports on HOOD. The Goldman Sachs Group lifted their target price on Robinhood Markets from $124.00 to $142.00 and gave the company a "buy" rating in a research note on Tuesday, September 8th. BTIG Research restated a "buy" rating and issued a $125.00 price target on shares of Robinhood Markets in a research note on Thursday, July 30th. China Renaissance began coverage on shares of Robinhood Markets in a report on Tuesday, July 7th. They set a "buy" rating for the company. Needham & Company LLC reduced their price objective on shares of Robinhood Markets from $123.00 to $120.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Finally, Morgan Stanley downgraded shares of Robinhood Markets from an "overweight" rating to an "outperform" rating in a report on Tuesday. Two analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $133.00.

Robinhood Markets Stock Down 2.5%

HOOD opened at $116.46 on Tuesday. The stock has a market cap of $104.71 billion, a price-to-earnings ratio of 51.30, a price-to-earnings-growth ratio of 2.38 and a beta of 2.34. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.22 and a current ratio of 1.22. The firm's fifty day moving average is $105.03 and its 200 day moving average is $92.80. Robinhood Markets has a fifty-two week low of $63.51 and a fifty-two week high of $153.86.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.62 earnings per share (EPS) for the quarter, topping 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 business had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.29 billion. During the same quarter in the prior year, the business posted $0.42 EPS. Robinhood Markets's revenue for the quarter was up 32.5% compared to the same quarter last year. On average, sell-side analysts forecast that Robinhood Markets will post 2.15 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Vladimir Tenev sold 240,834 shares of the firm's stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $125.33, for a total value of $30,183,725.22. Following the completion of the transaction, the chief executive officer directly owned 240,834 shares of the company's stock, valued at approximately $30,183,725.22. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Shiv Verma sold 11,472 shares of the business's stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $110.42, for a total transaction of $1,266,738.24. Following the completion of the sale, the chief financial officer owned 56,858 shares in the company, valued at $6,278,260.36. This represents a 16.79% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 1,121,121 shares of company stock worth $132,674,478. Insiders own 13.48% of the company's stock.

Hedge Funds Weigh In On Robinhood Markets

A number of institutional investors and hedge funds have recently made changes to their positions in HOOD. Parkside Financial Bank & Trust lifted its holdings in shares of Robinhood Markets by 11.9% in the 2nd quarter. Parkside Financial Bank & Trust now owns 1,089 shares of the company's stock valued at $109,000 after purchasing an additional 116 shares during the last quarter. Sivia Capital Partners LLC grew its stake in Robinhood Markets by 2.8% during the 4th quarter. Sivia Capital Partners LLC now owns 4,310 shares of the company's stock worth $487,000 after buying an additional 117 shares during the last quarter. MCF Advisors LLC increased its position in Robinhood Markets by 52.6% during the fourth quarter. MCF Advisors LLC now owns 377 shares of the company's stock worth $43,000 after buying an additional 130 shares during the period. RFG Advisory LLC increased its position in Robinhood Markets by 4.0% during the second quarter. RFG Advisory LLC now owns 3,505 shares of the company's stock worth $351,000 after buying an additional 135 shares during the period. Finally, Dearborn Partners LLC increased its position in Robinhood Markets by 7.4% during the fourth quarter. Dearborn Partners LLC now owns 2,132 shares of the company's stock worth $241,000 after buying an additional 146 shares during the period. 93.27% of the stock is owned by hedge funds and other institutional investors.

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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