NewEdge Advisors LLC Acquires 10,685 Shares of Robinhood Markets, Inc. $HOOD

Key Points

• NewEdge Advisors increased its Robinhood stake by 18.3%, purchasing 10,685 additional shares to hold 68,920 shares valued at approximately $6.9 million. Institutional investors collectively own 93.27% of HOOD.
• Robinhood reported quarterly EPS of $0.62, beating estimates of $0.44, while revenue rose 32.5% year over year to $1.31 billion.
• Analyst sentiment remains favorable, with a consensus rating of “Moderate Buy” and an average price target of $129.83; however, insiders sold 566,276 shares worth about $63.7 million during the quarter.

NewEdge Advisors LLC grew its holdings in Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) by 18.3% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 68,920 shares of the company's stock after purchasing an additional 10,685 shares during the period. NewEdge Advisors LLC's holdings in Robinhood Markets were worth $6,911,000 at the end of the most recent quarter.

Other institutional investors have also made changes to their positions in the company. CYBER HORNET ETFs LLC raised its stake in shares of Robinhood Markets by 527.8% during the 4th quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company's stock worth $26,000 after purchasing an additional 190 shares in the last quarter. Elyxium Wealth LLC bought a new position in shares of Robinhood Markets in the fourth quarter valued at $27,000. MV Capital Management Inc. acquired a new position in Robinhood Markets during the fourth quarter worth $27,000. C M Bidwell & Associates Ltd. acquired a new position in Robinhood Markets during the second quarter worth $27,000. Finally, Swiss RE Ltd. bought a new stake in Robinhood Markets during the fourth quarter worth $27,000. Institutional investors own 93.27% of the company's stock.

Insider Activity at Robinhood Markets

In other news, Director Oluwadara Treseder sold 1,875 shares of the company's stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $125.00, for a total value of $234,375.00. Following the transaction, the director owned 70,567 shares of the company's stock, valued at approximately $8,820,875. This represents a 2.59% decrease in their ownership of the stock. The transaction 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, CFO Shiv Verma sold 3,982 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $95.07, for a total value of $378,568.74. Following the transaction, the chief financial officer owned 51,963 shares in the company, valued at approximately $4,940,122.41. This trade represents a 7.12% 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. Over the last quarter, insiders have sold 566,276 shares of company stock valued at $63,721,282. Insiders own 13.48% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. BTIG Research reissued a "buy" rating and issued a $125.00 price objective on shares of Robinhood Markets in a research report on Thursday, July 30th. Scotiabank began coverage on shares of Robinhood Markets in a report on Wednesday, September 2nd. They issued a "sector outperform" rating and a $136.00 target price on the stock. Barclays cut their target price on shares of Robinhood Markets from $122.00 to $105.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Loop Capital set a $142.00 price target on Robinhood Markets in a report on Tuesday, September 8th. Finally, Zacks Research raised Robinhood Markets from a "hold" rating to a "strong-buy" rating in a research report on Thursday, September 3rd. Two investment 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. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $129.83.

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

NASDAQ HOOD opened at $112.57 on Monday. The stock has a market cap of $101.21 billion, a PE ratio of 49.59, a P/E/G ratio of 2.30 and a beta of 2.34. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.22 and a current ratio of 1.22. The firm has a 50-day moving average of $103.62 and a 200-day moving average of $89.80. Robinhood Markets, Inc. has a 52-week low of $63.51 and a 52-week high of $153.86.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released 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. The firm had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.29 billion. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. The business's revenue was up 32.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.42 EPS. On average, sell-side analysts anticipate that Robinhood Markets, Inc. will post 2.11 EPS for the current year.

Robinhood Markets Profile

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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