Capital Impact Advisors LLC Raises Holdings in Robinhood Markets, Inc. $HOOD

Key Points

• Capital Impact Advisors LLC boosted its Robinhood stake by 154.3% in the fourth quarter, buying 164,705 additional shares to bring its total holding to 271,433 shares worth about $30.7 million.
• Several other institutional investors also increased their positions, and 93.27% of Robinhood’s stock is now owned by hedge funds and other institutions, underscoring strong institutional interest.
• Robinhood is drawing positive attention after announcing a 10% workforce reduction and reporting record June trading activity, while analysts remain broadly bullish with an average price target of $112.36.

Capital Impact Advisors LLC increased its position in Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) by 154.3% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 271,433 shares of the company's stock after buying an additional 164,705 shares during the quarter. Robinhood Markets comprises about 2.4% of Capital Impact Advisors LLC's investment portfolio, making the stock its 24th biggest position. Capital Impact Advisors LLC's holdings in Robinhood Markets were worth $30,699,000 at the end of the most recent reporting period.

Several other large investors have also made changes to their positions in HOOD. Aberdeen Group plc increased its holdings in Robinhood Markets by 565.1% in the 3rd quarter. Aberdeen Group plc now owns 185,538 shares of the company's stock valued at $26,565,000 after purchasing an additional 157,643 shares in the last quarter. NEOS Investment Management LLC acquired a new stake in Robinhood Markets in the 3rd quarter valued at $11,994,000. Truist Financial Corp increased its holdings in Robinhood Markets by 88.9% in the 4th quarter. Truist Financial Corp now owns 145,489 shares of the company's stock valued at $16,455,000 after purchasing an additional 68,458 shares in the last quarter. PNC Financial Services Group Inc. increased its holdings in Robinhood Markets by 86.2% in the 4th quarter. PNC Financial Services Group Inc. now owns 100,849 shares of the company's stock valued at $11,406,000 after purchasing an additional 46,688 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC increased its holdings in Robinhood Markets by 26.3% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 365,551 shares of the company's stock valued at $44,477,000 after purchasing an additional 76,075 shares in the last quarter. 93.27% of the stock is owned by hedge funds and other institutional investors.

Key Robinhood Markets News

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

• Positive Sentiment: Robinhood announced a planned 10% workforce reduction, which investors are interpreting as a cost-cutting move that could improve efficiency and margins. The company said the restructuring is aimed at flattening management and speeding product launches. WSJ: Robinhood Markets to Cut 10% of Workforce in Restructuring
• Positive Sentiment: Management also said trading activity is running at record levels in June, signaling strong platform engagement and potentially better near-term revenue trends. Motley Fool: Robinhood Jumps After Announcing 10% Workforce Reduction, Record June Volumes
• Positive Sentiment: Wall Street responded favorably, with Argus raising its price target on HOOD to $110 from $90 and reiterating a buy rating, reinforcing confidence in the company’s growth outlook. Yahoo Finance: Robinhood Stock Is Soaring A Day After Big Layoffs. This Is Why.
• Positive Sentiment: Multiple reports say analysts remain broadly bullish on Robinhood despite the layoffs, suggesting investors see the company’s growth story as intact. Invezz: Robinhood stock gains as analysts back growth despite layoffs
• Neutral Sentiment: There was also insider selling by CFO Shiv Verma and director Baiju Bhatt, but both sales were disclosed as pre-arranged 10b5-1 transactions, so the market may treat them as routine rather than a major warning sign. SEC filing: Shiv Verma sale SEC filing: Baiju Bhatt sale

Robinhood Markets Price Performance

Shares of Robinhood Markets stock opened at $105.20 on Thursday. The business has a 50-day moving average of $81.94 and a 200-day moving average of $91.51. The company has a market capitalization of $94.73 billion, a PE ratio of 50.82, a P/E/G ratio of 2.42 and a beta of 2.35. Robinhood Markets, Inc. 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 Tuesday, April 28th. The company reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.01). The business had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.14 billion. Robinhood Markets had a net margin of 41.12% and a return on equity of 21.39%. The firm's revenue was up 15.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.37 earnings per share. On average, equities analysts expect that Robinhood Markets, Inc. will post 1.83 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several brokerages recently issued reports on HOOD. Jefferies Financial Group lowered their price target on Robinhood Markets from $88.00 to $84.00 and set a "buy" rating for the company in a report on Monday, April 6th. KeyCorp reiterated an "overweight" rating and issued a $100.00 price target on shares of Robinhood Markets in a report on Monday, June 1st. JPMorgan Chase & Co. lowered their price target on Robinhood Markets from $113.00 to $92.00 and set a "neutral" rating for the company in a report on Thursday, April 23rd. Sanford C. Bernstein reiterated an "outperform" rating and issued a $130.00 price target on shares of Robinhood Markets in a report on Tuesday, April 14th. Finally, Mizuho increased their price target on Robinhood Markets from $110.00 to $115.00 and gave the company an "outperform" rating in a report on Friday, May 29th. Eighteen analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, Robinhood Markets presently has a consensus rating of "Moderate Buy" and an average target price of $112.36.

Insider Activity at Robinhood Markets

In other news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $83.68, for a total transaction of $836,800.00. Following the completion of the sale, the insider directly owned 481,396 shares in the company, valued at $40,283,217.28. This trade represents a 2.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Meyer Malka bought 250,000 shares of the stock in a transaction dated Friday, June 5th. The shares were acquired at an average price of $80.74 per share, with a total value of $20,185,000.00. Following the completion of the purchase, the director directly owned 3,924,427 shares of the company's stock, valued at approximately $316,858,235.98. This represents a 6.80% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders acquired 680,000 shares of company stock valued at $55,306,560 and sold 633,484 shares valued at $47,542,923. Insiders own 14.47% of the company's stock.

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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