Robinhood Markets (NASDAQ:HOOD) Earns Overweight Rating from Morgan Stanley

Key Points

• Morgan Stanley reaffirmed its Overweight rating on Robinhood Markets and set a $150 price target, implying 33.44% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with an average target of $132.83.
• 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. Shares recently traded at $112.41, with a market capitalization of about $101.1 billion.
• Insiders sold more than $132.7 million of stock over the past 90 days, while institutional investors own 93.27% of the company. The stock also faces valuation and regulatory risks despite continued analyst support.

Robinhood Markets (NASDAQ:HOOD - Get Free Report)'s stock had its "overweight" rating reissued by stock analysts at Morgan Stanley in a research note issued to investors on Wednesday, Benzinga reports. They currently have a $150.00 price objective on the stock. Morgan Stanley's price target would suggest a potential upside of 33.44% from the stock's previous close.

A number of other research analysts have also weighed in on HOOD. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $160.00 price objective on shares of Robinhood Markets in a report on Tuesday, September 8th. Deutsche Bank Aktiengesellschaft dropped their price objective on Robinhood Markets from $138.00 to $134.00 and set a "buy" rating on the stock in a report on Tuesday. KeyCorp upped their price objective on Robinhood Markets from $100.00 to $125.00 and gave the stock an "overweight" rating in a report on Wednesday, July 22nd. Needham & Company LLC dropped their price objective on Robinhood Markets from $123.00 to $120.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Finally, Argus upped their price objective on Robinhood Markets from $90.00 to $110.00 and gave the stock a "buy" rating in a report on Wednesday, June 17th. 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 company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $132.83.

Robinhood Markets Stock Performance

Shares of Robinhood Markets stock traded down $3.81 during trading on Wednesday, reaching $112.41. The company's stock had a trading volume of 25,879,207 shares, compared to its average volume of 27,323,402. The company has a 50-day moving average price of $105.23 and a two-hundred day moving average price of $93.07. The firm has a market cap of $101.07 billion, a PE ratio of 49.52, a P/E/G ratio of 2.32 and a beta of 2.34. Robinhood Markets has a fifty-two week low of $63.51 and a fifty-two week high of $153.86. 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 announced its earnings results on Wednesday, July 29th. The company reported $0.62 EPS for the quarter, beating analysts' consensus estimates of $0.44 by $0.18. The business had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.29 billion. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. The company's quarterly revenue was up 32.5% on a year-over-year basis. During the same period in the previous year, the company posted $0.42 EPS. On average, analysts forecast that Robinhood Markets will post 2.15 EPS for the current year.

Insider Activity at Robinhood Markets

In other Robinhood Markets news, 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 sale, the chief financial officer directly owned 56,858 shares in the company, valued at approximately $6,278,260.36. The trade was a 16.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Baiju Bhatt sold 43,373 shares of the business's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $114.28, for a total value of $4,956,666.44. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,121,121 shares of company stock valued at $132,674,478 in the last 90 days. 13.48% of the stock is owned by corporate insiders.

Institutional Trading of Robinhood Markets

Institutional investors and hedge funds have recently made changes to their positions in the stock. State Street Corp lifted its position in shares of Robinhood Markets by 2.7% in the fourth quarter. State Street Corp now owns 33,121,452 shares of the company's stock valued at $3,746,036,000 after acquiring an additional 875,297 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its position in shares of Robinhood Markets by 10.2% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 6,812,999 shares of the company's stock valued at $472,141,000 after acquiring an additional 632,403 shares in the last quarter. Amundi lifted its position in shares of Robinhood Markets by 89.0% in 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 in the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Robinhood Markets in the second quarter valued at $379,695,000. Finally, Amova Asset Management Americas Inc. lifted its position 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 valued at $362,925,000 after acquiring an additional 685,041 shares in the last quarter. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: AI-powered trading agents: Robinhood unveiled “Robinhood Agents,” which can research markets, develop strategies and place trades within customer-defined limits. The move positions HOOD as an early mainstream provider of autonomous retail trading tools and could deepen customer engagement. Robinhood unveils weekend hours, AI agents to allow users to trade nonstop
• Positive Sentiment: Expanded trading access: The company plans to offer round-the-clock trading, including weekends, in selected stocks. It is also adding crypto perpetual futures and prediction-market products, giving customers more ways to trade and potentially increasing transaction-based revenue. Robinhood brings round-the-clock trading to select stocks
• Positive Sentiment: Analyst support: BTIG raised its price target to $135 from $125 while maintaining a Buy rating. Goldman Sachs also lifted its target to $145 from $144 and kept a Buy rating, reinforcing the bullish view following strong trading activity. Goldman Sachs adjusts price target
• Neutral Sentiment: Overnight-market opportunity: Nasdaq’s planned 23-hour trading session and expanded clearing infrastructure could improve liquidity and execution reliability, benefiting Robinhood’s existing extended-hours offering. However, regulated access may reduce HOOD’s early-mover advantage as competitors gain similar capabilities. How Nasdaq’s 23-hour trading could wake up Wall Street
• Negative Sentiment: Risks remain: Autonomous trading raises questions about investor protection, liability, suitability and regulatory oversight. The stock also carries a high valuation, while rising yields and inflation concerns have recently pressured rate-sensitive fintech shares.

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.