Robinhood Markets, Inc. (NASDAQ:HOOD) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts remain broadly positive: Robinhood has a “Moderate Buy” consensus from 26 firms, including 21 buy ratings and five holds, with an average 12-month price target of approximately $120.52.
• Recent results exceeded expectations: Quarterly EPS came in at $0.62 versus the $0.44 consensus, while revenue reached $1.31 billion, up 32.5% year over year and slightly above estimates.
• Valuation and regulatory risks remain: The stock trades at a relatively high P/E of 45.93 after significant appreciation, while a Nevada ruling involving prediction-market operations adds uncertainty; insiders sold $66.7 million of shares over the past quarter.

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) have been assigned an average rating of "Moderate Buy" from the twenty-six research firms that are currently covering the company, MarketBeat reports. Five investment analysts have rated the stock with a hold rating and twenty-one have given a buy rating to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $120.5217.

Several research firms have recently weighed in on HOOD. Needham & Company LLC cut their target price on shares of Robinhood Markets from $123.00 to $120.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft increased their price target on shares of Robinhood Markets from $105.00 to $113.00 and gave the stock a "buy" rating in a report on Tuesday, June 30th. BTIG Research restated a "buy" rating and set a $125.00 price target on shares of Robinhood Markets in a research report on Thursday, July 30th. Sanford C. Bernstein lifted their price objective on shares of Robinhood Markets from $130.00 to $160.00 and gave the company an "outperform" rating in a report on Monday, July 20th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Robinhood Markets in a research report on Wednesday, June 24th.

Insider Transactions at Robinhood Markets

In other Robinhood Markets news, Director Meyer Malka purchased 250,000 shares of Robinhood Markets stock in a transaction that occurred on Friday, June 5th. The stock was bought at an average price of $80.74 per share, with a total value of $20,185,000.00. Following the acquisition, the director owned 3,924,427 shares of the company's stock, valued at $316,858,235.98. This trade represents a 6.80% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider Steven M. Quirk sold 19,377 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $119.96, for a total value of $2,324,464.92. Following the transaction, the insider owned 62,612 shares in the company, valued at $7,510,935.52. This represents a 23.63% decrease in their position. 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 612,704 shares of company stock worth $66,675,612 over the last quarter. Company insiders own 13.48% of the company's stock.

Institutional Trading of Robinhood Markets

Several institutional investors have recently modified their holdings of the stock. Truist Financial Corp raised its holdings in shares of Robinhood Markets by 88.9% during the fourth quarter. Truist Financial Corp now owns 145,489 shares of the company's stock valued at $16,455,000 after acquiring an additional 68,458 shares during the last quarter. PNC Financial Services Group Inc. boosted its stake in shares of Robinhood Markets by 86.2% in the fourth quarter. PNC Financial Services Group Inc. now owns 100,849 shares of the company's stock worth $11,406,000 after acquiring an additional 46,688 shares during the last quarter. Nomura Asset Management Co. Ltd. boosted its stake in shares of Robinhood Markets by 196.3% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 722,857 shares of the company's stock worth $81,755,000 after acquiring an additional 478,919 shares during the last quarter. Swiss Life Asset Management Ltd increased its position in shares of Robinhood Markets by 107.8% during the fourth quarter. Swiss Life Asset Management Ltd now owns 272,604 shares of the company's stock worth $30,832,000 after purchasing an additional 141,440 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its stake in Robinhood Markets by 4.6% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,742,369 shares of the company's stock valued at $200,738,000 after purchasing an additional 76,514 shares during the last quarter. Institutional investors and hedge funds own 93.27% of the company's stock.

Key Stories Impacting Robinhood Markets

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

• Positive Sentiment: Robinhood’s shares have benefited from strong post-earnings momentum. Analysts continue to assess whether record revenue, asset inflows and an expanding product ecosystem can support further gains after the company’s latest results exceeded expectations. Robinhood Markets Up Since Last Earnings Report
• Positive Sentiment: The broader retail-trading bid has remained supportive for brokerage stocks, with Webull’s rally indicating continued investor interest in the sector. That trend could help Robinhood’s trading activity and transaction-based revenue. Webull Surges as Retail Trading Bid Extends
• Neutral Sentiment: Recent analysis describes Robinhood’s setup as potentially favorable but recommends patience, reflecting uncertainty over whether earnings growth can justify the stock’s elevated valuation. Robinhood’s Setup Is Starting to Look Favorable
• Negative Sentiment: Robinhood, Kalshi and Crypto.com lost appeals seeking injunctive relief against the Nevada Gaming Control Board. The ruling may complicate Robinhood’s prediction-market operations in Nevada and raises regulatory uncertainty around its expansion into event contracts. Robinhood and Kalshi issued responses, but the decision remains an overhang for the stock. Robinhood and Others Lose Appeals Against Nevada Gaming Control Board
• Negative Sentiment: Although Robinhood recently reported earnings and revenue above consensus, analysts caution that its steep share-price appreciation and premium valuation leave limited room for weaker growth or execution setbacks. Strong Growth, Steep Price: Is Robinhood Stock Still Attractive?

Robinhood Markets Stock Down 5.0%

Shares of HOOD opened at $104.26 on Friday. The company has a market capitalization of $93.74 billion, a price-to-earnings ratio of 45.93, a PEG ratio of 2.00 and a beta of 2.35. Robinhood Markets has a 52 week low of $63.51 and a 52 week high of $153.86. The stock's 50-day moving average price is $101.46 and its 200-day moving average price is $87.10. 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 announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.62 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.18. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%.The company had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.29 billion. During the same period last year, the business earned $0.42 earnings per share. Robinhood Markets's quarterly revenue was up 32.5% on a year-over-year basis. On average, sell-side analysts predict that Robinhood Markets will post 2.04 EPS for the current year.

Robinhood Markets Company Profile

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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