Baird Financial Group Inc. Has $7.86 Million Stock Holdings in Robinhood Markets, Inc. $HOOD

Key Points

• Baird Financial Group increased its Robinhood stake by 46.6% in the second quarter, bringing its holdings to 78,396 shares valued at approximately $7.86 million. Institutional investors and hedge funds collectively own 93.27% of HOOD.
• Analyst sentiment remains positive: Jefferies, Piper Sandler, Scotiabank, and Goldman Sachs raised or initiated bullish price targets ranging from $136 to $145. The stock has a consensus “Moderate Buy” rating and an average price target of $129.83.
• Robinhood reported quarterly EPS of $0.62, beating estimates of $0.44, while revenue rose 32.5% year over year to $1.31 billion. However, insiders sold 566,276 shares worth $63.7 million during the latest quarter, mostly through pre-arranged trading plans.

Baird Financial Group Inc. grew its position in Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) by 46.6% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 78,396 shares of the company's stock after purchasing an additional 24,907 shares during the quarter. Baird Financial Group Inc.'s holdings in Robinhood Markets were worth $7,862,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. CYBER HORNET ETFs LLC increased its position in Robinhood Markets by 527.8% during the fourth quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company's stock worth $26,000 after acquiring an additional 190 shares during the period. Elyxium Wealth LLC bought a new stake in Robinhood Markets in the 4th quarter valued at $27,000. MV Capital Management Inc. acquired a new stake in Robinhood Markets in the 4th quarter worth $27,000. C M Bidwell & Associates Ltd. acquired a new stake in Robinhood Markets in the 2nd quarter worth $27,000. Finally, Swiss RE Ltd. bought a new position in shares of Robinhood Markets during the 4th quarter worth about $27,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Wall Street Zen upgraded Robinhood Markets from a "strong sell" rating to a "sell" rating in a research note on Sunday, July 12th. Jefferies Financial Group raised their price objective on Robinhood Markets from $127.00 to $140.00 and gave the stock a "buy" rating in a research report on Tuesday, September 8th. Piper Sandler reissued an "overweight" rating and set a $145.00 price objective (up from $135.00) on shares of Robinhood Markets in a report on Wednesday, September 2nd. Scotiabank initiated coverage on Robinhood Markets in a research report on Wednesday, September 2nd. They set a "sector outperform" rating and a $136.00 price objective on the stock. Finally, The Goldman Sachs Group upped their target price on Robinhood Markets from $124.00 to $142.00 and gave the company a "buy" rating in a research note on Tuesday, September 8th. Two analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $129.83.

Insider Buying and Selling at Robinhood Markets

In other news, 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 transaction, the chief financial officer directly owned 51,963 shares of the company's stock, valued at $4,940,122.41. This trade represents a 7.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of Robinhood Markets stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $122.43, for a total transaction of $1,224,300.00. Following the transaction, the insider directly owned 509,943 shares in the company, valued at approximately $62,432,321.49. This represents a 1.92% 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 566,276 shares of company stock valued at $63,721,282 over the last quarter. 13.48% of the stock is owned by corporate insiders.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: Strong August activity and event-contract growth: Robinhood reported 28.6 million customers and broadly positive August operating metrics. Separately, event-contract activity reportedly increased 15-fold year over year, supporting the company’s diversification beyond traditional brokerage revenue. Robinhood August operating data Robinhood event contracts growth
• Positive Sentiment: New revenue opportunities: Citizens JMP raised its price target to $165 from $155 and maintained a Market Outperform rating. Citizens also projected Robinhood Chain could generate $365 million in revenue by 2027. Robinhood’s underwriting role in the Oura IPO could provide investment-banking fee revenue and create opportunities to participate in larger IPOs. Citizens Robinhood Chain projection Robinhood investment banking ambitions
• Neutral Sentiment: Expansion through partnerships: Robinhood is expanding prediction-market access through arrangements involving Crypto.com and OG.com, although the ultimate financial contribution remains uncertain.
• Negative Sentiment: Regulatory and legal concerns: Robinhood plans to stop offering sports prediction markets in Michigan amid litigation. A broader legal update highlights rapidly changing rules across several states, creating uncertainty around the company’s prediction-market growth strategy. Robinhood Michigan prediction markets lawsuit Prediction markets legal update
• Negative Sentiment: Tokenization faces scrutiny: Objections from securities issuers and unresolved regulatory questions could raise compliance costs and slow Robinhood’s international rollout of tokenized stocks. Robinhood tokenized-stock scrutiny
• Negative Sentiment: Insider sale: Director Oluwadara Treseder sold 1,875 shares for approximately $234,375 under a pre-arranged Rule 10b5-1 plan. The sale was small relative to her remaining stake but may add modest caution.

Robinhood Markets Stock Performance

Shares of NASDAQ:HOOD opened at $112.57 on Monday. The business has a fifty day moving average of $103.62 and a 200-day moving average of $89.80. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.22 and a current ratio of 1.22. Robinhood Markets, Inc. has a twelve month low of $63.51 and a twelve month high of $153.86. The firm has a market cap of $101.21 billion, a PE ratio of 49.59, a price-to-earnings-growth ratio of 2.30 and a beta of 2.34.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.18. The firm had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.29 billion. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%.The business's revenue for the quarter was up 32.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.42 EPS. On average, equities research analysts predict that Robinhood Markets, Inc. will post 2.11 EPS for the current fiscal year.

About Robinhood Markets

Robinhood Markets, Inc is a financial services company that operates a digital investing and trading platform. Through its mobile app and website, the company provides access to U.S. stocks, exchange-traded funds, options, cryptocurrencies and other investment products. Robinhood also offers individual retirement accounts, margin investing and cash-management services, subject to applicable eligibility requirements and regulations.

The company generates revenue from sources that include interest earned on customer cash and margin balances, transaction-based revenue related to options and cryptocurrency trading, subscription fees for Robinhood Gold and other service-related activities.

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