Robinhood Markets (NASDAQ:HOOD) Stock Rating Upgraded by Evercore

Key Points

• Evercore upgraded Robinhood Markets to “strong buy,” adding to broadly positive analyst sentiment. The stock has a “Moderate Buy” consensus rating and an average price target of $129.69.
• Robinhood reported quarterly adjusted EPS of $0.62, beating the $0.44 consensus estimate, while revenue rose 32.5% year over year to $1.31 billion.
• Insiders sold approximately $128 million of shares over the past three months, including CEO Vladimir Tenev’s roughly $42.6 million sale; the transactions were conducted under pre-arranged Rule 10b5-1 plans.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) was upgraded by stock analysts at Evercore to a "strong-buy" rating in a research report issued on Monday, Zacks reports.

A number of other analysts have also recently commented on the company. Benchmark upgraded Robinhood Markets to a "strong-buy" rating in a research report on Wednesday, September 9th. Jefferies Financial Group boosted their target price on Robinhood Markets from $127.00 to $140.00 and gave the company a "buy" rating in a report on Tuesday, September 8th. Scotiabank assumed coverage on Robinhood Markets in a research report on Wednesday, September 2nd. They issued a "sector outperform" rating and a $136.00 target price for the company. Citigroup restated a "market outperform" rating on shares of Robinhood Markets in a research note on Friday. Finally, Piper Sandler restated an "overweight" rating and set a $145.00 price target (up from $135.00) on shares of Robinhood Markets in a research note on Wednesday, September 2nd. Three analysts have rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Robinhood Markets currently has a consensus rating of "Moderate Buy" and an average price target of $129.69.

Robinhood Markets Trading Up 0.2%

Shares of Robinhood Markets stock opened at $109.22 on Monday. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.23. The company has a fifty day simple moving average of $108.32 and a 200-day simple moving average of $95.42. The stock has a market cap of $98.20 billion, a price-to-earnings ratio of 48.11, a PEG ratio of 2.13 and a beta of 2.35. 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 announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.62 EPS for the quarter, topping the consensus estimate of $0.44 by $0.18. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same period last year, the business earned $0.42 EPS. Robinhood Markets's revenue for the quarter was up 32.5% compared to the same quarter last year. On average, equities analysts forecast that Robinhood Markets will post 2.14 EPS for the current fiscal year.

Insider Activity at Robinhood Markets

In other news, CFO Shiv Verma sold 11,472 shares of the stock in a transaction dated Tuesday, September 15th. The shares were 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 approximately $6,278,260.36. This represents a 16.79% decrease in their ownership of the stock. The sale was disclosed in a filing 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, CEO Vladimir Tenev sold 375,000 shares of the stock in a transaction dated 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 sale, the chief executive officer owned 375,000 shares of the company's stock, valued at $42,645,000. This trade represents a 50.00% 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. Insiders sold a total of 1,089,658 shares of company stock worth $127,966,018 in the last three months. Company insiders own 13.48% of the company's stock.

Institutional Trading of Robinhood Markets

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Sumitomo Mitsui Trust Group Inc. increased its holdings 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 purchasing an additional 632,403 shares during the period. 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 worth $442,497,000 after purchasing an additional 3,007,103 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Robinhood Markets during the second quarter worth $379,695,000. Amova Asset Management Americas Inc. lifted its holdings in shares of Robinhood Markets by 15.0% during the first quarter. Amova Asset Management Americas Inc. now owns 5,240,796 shares of the company's stock worth $362,925,000 after purchasing an additional 685,041 shares during the period. Finally, Renaissance Technologies LLC lifted its holdings in shares of Robinhood Markets by 48.6% during the first quarter. Renaissance Technologies LLC now owns 5,104,137 shares of the company's stock worth $353,717,000 after purchasing an additional 1,668,400 shares during the period. 93.27% of the stock is owned by hedge funds and other institutional investors.

Robinhood Markets News Roundup

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

• Positive Sentiment: Evercore ISI initiated coverage with an Outperform rating and a $130 price target, implying roughly 19% potential upside from the reference price. The firm sees Robinhood’s “product flywheel”—adding trading, crypto, prediction markets and other financial services—as a driver of user growth, engagement and revenue. Robinhood: Evercore ISI sees product flywheel driving upside
• Positive Sentiment: Evercore analysts said Robinhood has multiple growth opportunities, including crypto, prediction markets, deposits and additional financial products. They believe sustained deposit monetization and newer businesses could support upside not fully reflected in the valuation. Robinhood’s one-stop-shop strategy
• Positive Sentiment: Additional reporting highlighted strong performance across retail-investing platforms, with expanding funded accounts and greater use of research, data and artificial-intelligence tools. The trend supports Robinhood’s long-term customer acquisition and engagement prospects. Retail trading platforms post record quarters
• Neutral Sentiment: Robinhood’s CEO sold approximately $42.6 million of shares, while Cathie Wood sold about $38 million. The transactions could create a short-term supply overhang, though the reports characterize the sales as stemming from different circumstances rather than a common fundamental warning. Robinhood insider and Cathie Wood share sales
• Negative Sentiment: Uncertainty surrounding legal challenges to cryptocurrency-based perpetual futures could affect one area of the broader crypto and derivatives opportunity, although the direct impact on Robinhood remains unclear. The future of perpetual futures markets

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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