Robinhood Markets, Inc. (NASDAQ:HOOD) Stock Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Analyst sentiment is broadly positive: 28 of 36 covering firms rate Robinhood a buy and one rates it a strong buy, versus six holds and one sell. The average 12-month price target is $126.45.
• Latest quarterly results were mixed: EPS of $0.60 beat the $0.56 consensus, while revenue of $1.42 billion fell short of estimates; revenue nonetheless rose 11.5% year over year.
• Robinhood expanded its U.K. offering with commission-free access to U.S. IPOs, and reported about $15 billion in October net deposits. However, crypto trading volumes declined, which may weigh on transaction-related revenue.

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) have been given an average rating of "Moderate Buy" by the thirty-six ratings firms that are presently covering the company, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, six have issued a hold recommendation, twenty-eight have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $126.45.

Several analysts have issued reports on HOOD shares. Wall Street Zen downgraded Robinhood Markets from a "hold" rating to a "strong sell" rating in a research note on Sunday, November 1st. BTIG Research reaffirmed a "buy" rating and issued a $135.00 price objective on shares of Robinhood Markets in a research report on Wednesday, October 28th. KeyCorp reduced their target price on Robinhood Markets from $140.00 to $135.00 and set an "overweight" rating for the company in a research note on Wednesday, October 28th. Mizuho boosted their target price on Robinhood Markets from $130.00 to $140.00 and gave the stock an "outperform" rating in a report on Wednesday, September 9th. Finally, CICC Research increased their price target on Robinhood Markets from $100.00 to $110.00 and gave the company an "outperform" rating in a research note on Friday, July 31st.

Robinhood Markets Trading Up 4.0%

NASDAQ HOOD opened at $84.58 on Thursday. The stock has a 50-day simple moving average of $104.70 and a 200 day simple moving average of $91.95. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.26. The company has a market capitalization of $76.16 billion, a PE ratio of 38.98, a P/E/G ratio of 1.81 and a beta of 2.56. Robinhood Markets has a 12 month low of $63.51 and a 12 month high of $139.75.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The company reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.04. Robinhood Markets had a net margin of 39.04% and a return on equity of 21.49%. The company had revenue of $1.42 billion during the quarter, compared to analyst estimates of $1.44 billion. During the same quarter in the previous year, the business earned $0.61 EPS. The firm's revenue was up 11.5% on a year-over-year basis. Research analysts forecast that Robinhood Markets will post 2.10 EPS for the current year.

Key Stories Impacting Robinhood Markets

Here are a few of the latest stories about HOOD:

• Positive Sentiment: Robinhood launched commission-free access to U.S. IPOs for U.K. retail investors, extending its product offering and supporting its international expansion strategy. Robinhood opens US IPOs to UK retail investors with zero commission
• Neutral Sentiment: Robinhood recorded about $15 billion in October net deposits, a sign of customer-fund growth, but crypto trading volumes declined. The deposits are encouraging, though lower crypto activity could restrain transaction-related revenue. Robinhood reports about $15 billion in October net deposits as crypto volumes slide
• Negative Sentiment: Hotter-than-expected inflation data pushed Bitcoin lower and revived expectations for tighter Federal Reserve policy, pressuring crypto-exposed trading platforms including Robinhood. Continued weakness in crypto prices or activity could dampen investor sentiment and trading revenue. Inflation data drags Bitcoin lower and pressures trading platforms

Insider Activity

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 value of $1,266,738.24. Following the transaction, the chief financial officer directly owned 56,858 shares of the company's stock, valued at $6,278,260.36. This represents a 16.79% decrease in their ownership of the stock. The sale 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, Director Baiju Bhatt sold 50,912 shares of the firm's stock in a transaction dated Wednesday, October 21st. The stock was sold at an average price of $101.40, for a total transaction of $5,162,476.80. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 1,095,820 shares of company stock valued at $128,775,816. 13.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Mayflower Financial Advisors LLC lifted its position in Robinhood Markets by 7.7% during the third quarter. Mayflower Financial Advisors LLC now owns 2,397 shares of the company's stock worth $270,000 after acquiring an additional 172 shares during the last quarter. Advisors Asset Management Inc. acquired a new position in shares of Robinhood Markets in the third quarter valued at approximately $3,396,000. Edmond DE Rothschild Holding S.A. grew its position in shares of Robinhood Markets by 63.5% in the third quarter. Edmond DE Rothschild Holding S.A. now owns 2,727 shares of the company's stock valued at $307,000 after purchasing an additional 1,059 shares during the last quarter. GW&K Investment Management LLC increased its stake in shares of Robinhood Markets by 70.9% during the third quarter. GW&K Investment Management LLC now owns 2,904 shares of the company's stock worth $327,000 after purchasing an additional 1,205 shares during the period. Finally, Westpac Banking Corp increased its stake in shares of Robinhood Markets by 16.4% during the third quarter. Westpac Banking Corp now owns 4,559 shares of the company's stock worth $513,000 after purchasing an additional 644 shares during the period. Institutional investors and hedge funds own 93.27% of the company's stock.

Robinhood Markets Company Profile

Robinhood Markets, Inc. operates a digital financial services platform that gives customers access to investing and financial products through its website and mobile app. Its offerings include trading in stocks, exchange-traded funds, options and cryptocurrencies, as well as retirement accounts and cash-management services. Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood built its business around making financial services more accessible through a mobile-first platform. The company is headquartered in Menlo Park, California, and serves customers in the United States and select international markets.

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