Robinhood Markets (NASDAQ:HOOD) Upgraded to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Robinhood Markets to “strong buy” from “hold.” Overall analyst sentiment is favorable, with a consensus “moderate buy” rating and an average price target of $122.67.
• Robinhood reported quarterly EPS of $0.62, exceeding estimates of $0.44, while revenue reached $1.31 billion, up 32.5% year over year and above expectations.
• Shares opened at $122.11, giving the company a market capitalization of about $109.8 billion; insiders have sold approximately $69.1 million of stock over the past 90 days, while institutional investors own 93.27% of shares.

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

A number of other equities research analysts have also commented on the stock. The Goldman Sachs Group reduced their price objective on shares of Robinhood Markets from $137.00 to $118.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. KeyCorp lifted their target price on shares of Robinhood Markets from $100.00 to $125.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 22nd. Citizens Jmp restated a "market outperform" rating and issued a $155.00 target price on shares of Robinhood Markets in a report on Thursday, July 30th. Weiss Ratings reiterated a "hold (c)" rating on shares of Robinhood Markets in a report on Wednesday, June 24th. Finally, Morgan Stanley raised Robinhood Markets from an "equal weight" rating to an "overweight" rating and lifted their price objective for the stock from $124.00 to $150.00 in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $122.67.

Robinhood Markets Price Performance

Shares of HOOD opened at $122.11 on Thursday. The business has a 50-day moving average of $102.73 and a 200-day moving average of $88.26. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.22 and a quick ratio of 1.22. The company has a market capitalization of $109.79 billion, a price-to-earnings ratio of 53.79, a price-to-earnings-growth ratio of 2.56 and a beta of 2.34. Robinhood Markets has a 1 year low of $63.51 and a 1 year high of $153.86.

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 the consensus estimate 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 return on equity of 22.43% and a net margin of 42.01%.The firm's revenue was up 32.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.42 earnings per share. As a group, equities research analysts anticipate that Robinhood Markets will post 2.08 earnings per share for the current year.

Insider Buying and Selling

In other Robinhood Markets news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the firm's stock in a transaction on 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 completion of the sale, the insider directly owned 509,943 shares in the company, valued at approximately $62,432,321.49. This trade represents a 1.92% 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 3,982 shares of Robinhood Markets stock in a transaction on Monday, August 17th. The shares were sold at an average price of $95.07, for a total transaction of $378,568.74. Following the completion of the sale, the chief financial officer directly owned 51,963 shares of the company's stock, valued at approximately $4,940,122.41. This trade represents a 7.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 626,283 shares of company stock worth $69,070,083 over the last ninety days. 13.48% of the stock is owned by company insiders.

Institutional Trading of Robinhood Markets

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Parkside Financial Bank & Trust raised its stake in Robinhood Markets by 11.9% during the 2nd quarter. Parkside Financial Bank & Trust now owns 1,089 shares of the company's stock worth $109,000 after buying an additional 116 shares during the period. Tucker Asset Management LLC acquired a new stake in Robinhood Markets in the second quarter valued at approximately $536,000. Groupe la Francaise bought a new stake in shares of Robinhood Markets during the second quarter valued at approximately $5,544,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Robinhood Markets during the second quarter valued at approximately $6,918,000. Finally, California State Teachers Retirement System increased its holdings in shares of Robinhood Markets by 9,976.4% during the second quarter. California State Teachers Retirement System now owns 113,132,988 shares of the company's stock valued at $11,344,976,000 after acquiring an additional 112,010,233 shares in the last quarter. 93.27% of the stock is owned by institutional investors.

More Robinhood Markets News

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

• Positive Sentiment: Analyst sentiment remains supportive. Scotiabank initiated coverage with a bullish view, while Piper Sandler raised its price target to $145 and expects football-related event contracts to increase activity. Robinhood generated $156 million from event contracts in the second quarter. Robinhood Stock Jumps After Wave of Analysts Upgrade
• Positive Sentiment: Robinhood Chain and crypto activity are emerging growth drivers. The new blockchain reportedly generated about $3.8 million in fees on September 1, while the company now has 13 business lines with more than $100 million in annualized revenue. Deutsche Bank also sees potential upside from Robinhood’s latest crypto initiatives. Robinhood Now Runs 13 Revenue Lines Above $100 Million a Year
• Positive Sentiment: CEO Vlad Tenev said Robinhood’s newly launched Trust Accounts have attracted more than $150 million since August, suggesting early customer demand for the offering. Robinhood Trust Accounts Now Have Over $150 Million

About Robinhood Markets

Robinhood Markets, Inc NASDAQ: HOOD is a U.S.-based financial services company best known for its mobile-first brokerage platform that aims to "democratize finance for all." Founded in 2013 by Vladimir Tenev and Baiju Bhatt and headquartered in Menlo Park, California, the company built early traction by offering commission-free trading and a simplified user experience that attracted a large base of retail investors.

Robinhood's core products and services include a mobile app and web platform for trading U.S.

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