Robinhood Markets (NASDAQ:HOOD) Stock Price Target Lowered at Wells Fargo & Company

Key Points

• Wells Fargo lowered Robinhood’s price target from $125 to $120 while maintaining an “equal weight” rating; the target still implies 14.41% upside. Analysts overall remain moderately bullish, with a consensus rating of “Moderate Buy” and an average target of $129.66.
• Robinhood reported better-than-expected quarterly results, posting $0.62 in adjusted EPS versus a $0.44 consensus estimate and $1.31 billion in revenue, up 32.5% year over year.
• Insiders sold heavily in the past 90 days, including CEO Vladimir Tenev’s $42.6 million sale, while institutional investors own 93.27% of the company’s shares.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) had its price target decreased by Wells Fargo & Company from $125.00 to $120.00 in a note issued to investors on Wednesday, Benzinga reports. The firm currently has an "equal weight" rating on the stock. Wells Fargo & Company's price target would suggest a potential upside of 14.41% from the stock's current price.

HOOD has been the subject of a number of other research reports. Evercore assumed coverage on shares of Robinhood Markets in a report on Monday. They issued an "outperform" rating and a $130.00 price target for the company. Scotiabank began coverage on Robinhood Markets in a research note on Wednesday, September 2nd. They set a "sector outperform" rating and a $136.00 price objective on the stock. Piper Sandler restated an "overweight" rating and set a $145.00 price objective (up from $135.00) on shares of Robinhood Markets in a research report on Wednesday, September 2nd. Deutsche Bank Aktiengesellschaft lowered their price objective on Robinhood Markets from $138.00 to $134.00 and set a "buy" rating for the company in a research note on Tuesday, September 29th. Finally, Loop Capital set a $135.00 price objective on Robinhood Markets in a research note on Tuesday, September 29th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $129.66.

Robinhood Markets Price Performance

Robinhood Markets stock traded down $5.63 during mid-day trading on Wednesday, reaching $104.89. 4,991,302 shares of the company's stock traded hands, compared to its average volume of 26,850,414. The company has a market cap of $94.30 billion, a price-to-earnings ratio of 46.30, a PEG ratio of 2.14 and a beta of 2.35. The stock has a 50 day moving average of $108.66 and a two-hundred day moving average of $95.68. 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 has a 12-month low of $63.51 and a 12-month high of $150.47.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.62 EPS for the quarter, topping 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 business had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.29 billion. During the same period last year, the company posted $0.42 EPS. The business's revenue was up 32.5% on a year-over-year basis. Equities analysts forecast that Robinhood Markets will post 2.14 earnings per share for the current year.

Insider Activity

In related 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 directly owned 375,000 shares in the company, valued at approximately $42,645,000. This represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible 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 stock in a transaction dated 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 directly owned 56,858 shares in the company, valued at $6,278,260.36. This trade represents a 16.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,089,658 shares of company stock worth $127,966,018 in the last 90 days. Company insiders own 13.48% of the company's stock.

Institutional Investors Weigh In On Robinhood Markets

Several hedge funds and other institutional investors have recently modified their holdings of the business. Central Pacific Bank Trust Division purchased a new position in Robinhood Markets during the 3rd quarter valued at $678,000. Eastern Bank increased its stake in Robinhood Markets by 13.3% in the third quarter. Eastern Bank now owns 1,700 shares of the company's stock worth $191,000 after purchasing an additional 200 shares during the period. QRG Capital Management Inc. increased its stake in Robinhood Markets by 14.8% in the second quarter. QRG Capital Management Inc. now owns 180,595 shares of the company's stock worth $18,110,000 after purchasing an additional 23,253 shares during the period. Envestnet Portfolio Solutions Inc. increased its stake in Robinhood Markets by 31.7% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 15,529 shares of the company's stock worth $1,557,000 after purchasing an additional 3,738 shares during the period. Finally, Capstone Financial Advisors Inc. lifted its position in shares of Robinhood Markets by 17.5% during the second quarter. Capstone Financial Advisors Inc. now owns 3,569 shares of the company's stock worth $358,000 after purchasing an additional 532 shares during the last quarter. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Robinhood Markets

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

• Positive Sentiment: Analyst coverage turned more bullish. Evercore ISI initiated coverage with an Outperform rating and a $130 price target, citing Robinhood’s product “flywheel,” deposit monetization potential and multiple growth initiatives. Truist also raised its target from $130 to $134 and reiterated a Buy rating. These targets imply meaningful upside from the referenced share price. Evercore initiates coverage Truist raises price target
• Positive Sentiment: Social trading is now broadly available in the United States. Robinhood opened its social-trading network to all eligible U.S. customers, allowing users to share trades and portfolios. The rollout could increase engagement, customer acquisition and assets on the platform. Robinhood expands social trading
• Positive Sentiment: Blockchain activity is gaining scale. Robinhood reported approximately $15 billion in stock-token trading during the first 100 days of its blockchain initiative. The volume supports the company’s strategy to broaden trading products and develop new transaction-based revenue streams. Robinhood stock-token trading reaches $15 billion
• Positive Sentiment: Earnings expectations remain supportive. Recent commentary points to Robinhood’s strong second-quarter beat-and-raise performance, improving earnings estimates and potential growth from crypto, prediction markets and other products ahead of its October 27 quarterly report. Robinhood earnings outlook

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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