Bank of America Corp DE Decreases Position in Robinhood Markets, Inc. $HOOD

Key Points

• Bank of America reduced its Robinhood stake by 10% in the first quarter, selling 683,351 shares but retaining 6.17 million shares worth approximately $427.2 million. Institutional investors collectively own 93.27% of HOOD.
• Robinhood reported a strong quarter, with adjusted EPS of $0.62 versus the $0.44 consensus and revenue up 32.5% year over year to a record $1.31 billion. Prediction-market revenue surpassed crypto revenue, while funded customers, trading volumes, assets and Gold subscribers reached record levels.
• The outlook is mixed: analysts maintain a “Moderate Buy” consensus with an average $120.30 price target, but some lowered targets amid a 38% decline in crypto revenue, higher expenses, valuation concerns and slower July account growth. HOOD recently opened at $86.56, well below its 12-month high of $153.86.

Bank of America Corp DE reduced its position in Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) by 10.0% during the first quarter, according to its most recent 13F filing with the SEC. The firm owned 6,165,099 shares of the company's stock after selling 683,351 shares during the period. Bank of America Corp DE owned 0.68% of Robinhood Markets worth $427,241,000 as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Sound Income Strategies LLC lifted its holdings in Robinhood Markets by 152.6% during the 4th quarter. Sound Income Strategies LLC now owns 240 shares of the company's stock worth $26,000 after purchasing an additional 145 shares in the last quarter. CYBER HORNET ETFs LLC grew its holdings in Robinhood Markets by 527.8% during the 4th quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company's stock valued at $26,000 after buying an additional 190 shares in the last quarter. Elyxium Wealth LLC purchased a new position in Robinhood Markets during the 4th quarter valued at about $27,000. MV Capital Management Inc. bought a new stake in shares of Robinhood Markets during the fourth quarter valued at about $27,000. Finally, Swiss RE Ltd. bought a new stake in shares of Robinhood Markets during the fourth quarter valued at about $27,000. 93.27% of the stock is owned by institutional investors.

Robinhood Markets News Roundup

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

• Positive Sentiment: Q2 earnings beat expectations: Robinhood reported adjusted earnings of $0.62 per share versus the $0.44 consensus estimate, while revenue rose 32.5% year over year to a record $1.31 billion, slightly above expectations. Robinhood Markets Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Business diversification accelerated: Prediction-market revenue reached $156 million, overtaking crypto revenue of $100 million. Management called event markets the company’s fastest-growing business, reducing HOOD’s reliance on cryptocurrency activity. Robinhood Beats Estimates as Prediction Markets Overtake Crypto
• Positive Sentiment: Customer and platform growth remained strong: Robinhood added nearly 1 million funded customers during the quarter—its largest increase in almost five years—and reported record trading volumes, platform assets and Gold subscribers. A reported boost from the anticipated SpaceX IPO also supported account growth. SpaceX IPO Helped Robinhood Add Nearly 1 Million Customers
• Positive Sentiment: Analysts still see substantial upside: Bernstein raised its price target to $160 and cited prediction markets as a potential growth driver, while Citizens JMP maintained an outperform rating with a $155 target. Bernstein Raised Robinhood Price Target
• Neutral Sentiment: CEO Vlad Tenev said the administration is crypto-friendly but argued that clearer, durable U.S. regulation is needed to prevent policy uncertainty from changing every four years. Robinhood CEO Discusses Crypto Regulation
• Negative Sentiment: Crypto weakness and valuation concerns pressured the stock: Crypto revenue fell 38% year over year, while investors questioned the sustainability of a one-time accounting benefit and rising expenses. Analysts also cited a meaningful slowdown in new accounts during July; Barclays cut its target to $105, and Goldman Sachs lowered its target to $118 while retaining a buy rating. HOOD Q2 Earnings Beat but Stock Dips

Analysts Set New Price Targets

Several brokerages have commented on HOOD. Keefe, Bruyette & Woods cut their price target on shares of Robinhood Markets from $75.00 to $65.00 and set a "market perform" rating for the company in a report on Wednesday, April 29th. Loop Capital set a $105.00 price target on shares of Robinhood Markets in a research report on Thursday. The Goldman Sachs Group decreased their target price 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. Mizuho raised their price target on Robinhood Markets from $115.00 to $130.00 and gave the stock an "outperform" rating in a research note on Thursday, July 2nd. Finally, Sanford C. Bernstein raised their target price on Robinhood Markets from $130.00 to $160.00 and gave the company an "outperform" rating in a research note on Monday, July 20th. Twenty-one equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $120.30.

Robinhood Markets Stock Down 0.0%

HOOD stock opened at $86.56 on Friday. 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, Inc. has a twelve month low of $63.51 and a twelve month high of $153.86. The business's 50-day moving average price is $98.02 and its 200-day moving average price is $87.63. The stock has a market cap of $77.95 billion, a P/E ratio of 38.13, a PEG ratio of 1.72 and a beta of 2.33.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.44 by $0.18. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%.The business had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.29 billion. During the same quarter in the prior year, the business posted $0.42 EPS. Robinhood Markets's revenue for the quarter was up 32.5% compared to the same quarter last year. On average, equities research analysts forecast that Robinhood Markets, Inc. will post 2 EPS for the current year.

Insider Transactions at Robinhood Markets

In related news, CEO Vladimir Tenev sold 375,000 shares of the company's stock in a transaction on Monday, July 6th. The shares were sold at an average price of $116.17, for a total transaction of $43,563,750.00. Following the completion of the transaction, the chief executive officer owned 375,000 shares in the company, valued at approximately $43,563,750. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Baiju Bhatt sold 67,422 shares of the firm's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $75.38, for a total transaction of $5,082,270.36. 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. In the last three months, insiders have bought 680,000 shares of company stock valued at $55,306,560 and have sold 631,263 shares valued at $66,793,857. 13.48% of the stock is owned by corporate insiders.

Robinhood Markets 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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