Robinhood Markets (NASDAQ:HOOD) Stock Price Expected to Rise, Needham & Company LLC Analyst Says

Key Points

• Needham raised Robinhood’s price target to $126 from $123 and maintained a Buy rating, implying 28.3% upside from the reported share price.
• Analyst sentiment is broadly positive: 27 analysts rate HOOD a Buy, with a consensus “Moderate Buy” rating and an average target price of $130.29.
• Robinhood recently exceeded quarterly expectations, reporting $0.62 in EPS and $1.31 billion in revenue, up 32.5% year over year; however, insiders sold $128 million of stock over the past three months.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) had its price target lifted by analysts at Needham & Company LLC from $123.00 to $126.00 in a report released on Wednesday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. Needham & Company LLC's target price suggests a potential upside of 28.30% from the company's current price.

Other equities research analysts also recently issued research reports about the company. The Goldman Sachs Group increased their price objective on Robinhood Markets from $144.00 to $145.00 and gave the stock a "buy" rating in a research report on Tuesday, September 29th. Scotiabank initiated coverage on Robinhood Markets in a research report on Wednesday, September 2nd. They set a "sector outperform" rating and a $136.00 target price for the company. Raymond James Financial restated a "market perform" rating on shares of Robinhood Markets in a research report on Monday, October 5th. China Renaissance started coverage on Robinhood Markets in a research note on Tuesday, July 7th. They issued a "buy" rating and a $156.80 target price on the stock. Finally, Evercore began coverage on Robinhood Markets in a report on Monday, October 12th. They issued an "outperform" rating and a $130.00 price target on the stock. Two equities 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 assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $130.29.

Robinhood Markets Trading Up 1.8%

Shares of HOOD opened at $98.21 on Wednesday. The business's 50-day moving average price is $109.32 and its 200-day moving average price is $96.79. Robinhood Markets has a twelve month low of $63.51 and a twelve month high of $150.47. The stock has a market cap of $88.30 billion, a PE ratio of 43.26, a P/E/G ratio of 1.88 and a beta of 2.35. The company has a quick ratio of 1.22, a current 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 data on Wednesday, July 29th. The company reported $0.62 EPS for the quarter, beating analysts' consensus estimates of $0.44 by $0.18. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. The company had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.29 billion. During the same period last year, the business earned $0.42 earnings per share. Robinhood Markets's revenue was up 32.5% compared to the same quarter last year. On average, equities analysts forecast that Robinhood Markets will post 2.15 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Shiv Verma sold 11,472 shares of the company's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $110.42, for a total value of $1,266,738.24. Following the completion of the transaction, the chief financial officer directly owned 56,858 shares in the company, valued at approximately $6,278,260.36. This represents a 16.79% decrease in their position. 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, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the firm's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $122.43, for a total value of $1,224,300.00. Following the transaction, the insider directly owned 509,943 shares in the company, valued at approximately $62,432,321.49. This represents a 1.92% decrease in their ownership of the stock. 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 1,089,658 shares of company stock valued at $127,966,018 in the last three months. 13.48% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Robinhood Markets

A number of hedge funds have recently made changes to their positions in HOOD. City State Bank lifted its position in Robinhood Markets by 78.1% during the 3rd quarter. City State Bank now owns 2,280 shares of the company's stock valued at $256,000 after acquiring an additional 1,000 shares during the period. Quadrant Capital Group LLC boosted its stake in Robinhood Markets by 295.2% during the third quarter. Quadrant Capital Group LLC now owns 8,342 shares of the company's stock worth $922,000 after acquiring an additional 6,231 shares in the last quarter. Carnegie Investment Counsel grew its holdings in Robinhood Markets by 81.3% in the third quarter. Carnegie Investment Counsel now owns 16,956 shares of the company's stock worth $1,908,000 after purchasing an additional 7,604 shares during the period. Pinnacle Associates Ltd. purchased a new stake in Robinhood Markets in the third quarter worth about $263,000. Finally, Nisa Investment Advisors LLC grew its holdings in Robinhood Markets by 12.6% in the third quarter. Nisa Investment Advisors LLC now owns 57,628 shares of the company's stock worth $6,483,000 after purchasing an additional 6,426 shares during the period. 93.27% of the stock is currently owned by institutional investors.

More Robinhood Markets News

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

• Positive Sentiment: New Buy rating and higher price target: Rosenblatt Securities initiated coverage with a Buy rating and a $135 price target, implying substantial upside from current levels. The analyst reportedly believes the market is underappreciating Robinhood’s growth story. HOOD Stock Rises Overnight: Market Underappreciates the Robinhood Story, Says Analyst
• Positive Sentiment: JPMorgan also raised its target: JPMorgan increased its price target from $103 to $115 while maintaining a Neutral rating, suggesting analysts see improved value even without adopting a bullish stance.
• Positive Sentiment: Growth and earnings expectations remain strong: Recent coverage argues Robinhood has favorable ingredients for an earnings beat. The company’s latest quarter produced $1.31 billion in revenue, up roughly 32% year over year, and management has reported strong net deposit momentum. Robinhood Markets Expected to Beat Earnings Estimates
• Positive Sentiment: Broader product platform: Robinhood is adding products such as AI trading tools, weekend stock trading and prediction-market contracts. Supporters view its multi-asset platform and premium subscription services as potential growth drivers beyond crypto and equities. Crypto and Beyond: Why Robinhood May Be a Better Buy Than Coinbase
• Neutral Sentiment: Technical support is being watched: HOOD recently closed at $96.52 after a significant decline from its September level. Analysts are monitoring whether the area near $96 represents support and could attract buyers. Is the Current Price of Robinhood Stock a Strong Support?
• Negative Sentiment: Valuation and execution risks remain: Robinhood trades at a premium earnings multiple, making the stock dependent on continued rapid growth. Its aggressive product rollout must generate durable revenue, while a slowdown in trading activity or net deposits could pressure results.

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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