NewEdge Advisors LLC Reduces Holdings in Robinhood Markets, Inc. $HOOD

Key Points

• NewEdge Advisors cut its Robinhood Markets stake by 56.9% in the first quarter, selling 76,881 shares and retaining 58,235 shares valued at approximately $4.04 million. Hedge funds and other institutional investors still own 93.27% of HOOD.
• Robinhood reported strong quarterly results, with revenue rising 32.5% year over year to $1.31 billion and EPS of $0.62 beating the $0.44 consensus estimate. However, a 38% decline in crypto trading volume remains a concern for transaction revenue.
• Analysts maintain a “Moderate Buy” consensus rating, with an average price target of $120.52 versus shares recently trading near $94.91.

NewEdge Advisors LLC lowered its position in Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) by 56.9% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 58,235 shares of the company's stock after selling 76,881 shares during the quarter. NewEdge Advisors LLC's holdings in Robinhood Markets were worth $4,036,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in HOOD. Empowered Funds LLC lifted its stake in shares of Robinhood Markets by 46.7% in the first quarter. Empowered Funds LLC now owns 49,870 shares of the company's stock worth $2,076,000 after acquiring an additional 15,885 shares in the last quarter. Arrowstreet Capital Limited Partnership purchased a new stake in Robinhood Markets during the 2nd quarter worth approximately $5,105,000. Federated Hermes Inc. raised its position in shares of Robinhood Markets by 106.2% in the 2nd quarter. Federated Hermes Inc. now owns 63,957 shares of the company's stock valued at $5,988,000 after purchasing an additional 32,933 shares in the last quarter. Nebula Research & Development LLC purchased a new position in shares of Robinhood Markets during the 2nd quarter valued at approximately $1,316,000. Finally, The Manufacturers Life Insurance Company boosted its stake in shares of Robinhood Markets by 23.7% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 50,121 shares of the company's stock valued at $4,693,000 after buying an additional 9,615 shares during the last quarter. 93.27% of the stock is owned by hedge funds and other institutional investors.

Robinhood Markets Price Performance

Shares of NASDAQ:HOOD opened at $94.91 on Thursday. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.23. The firm has a 50-day simple moving average of $99.61 and a 200 day simple moving average of $86.42. Robinhood Markets, Inc. has a fifty-two week low of $63.51 and a fifty-two week high of $153.86. The company has a market cap of $85.33 billion, a PE ratio of 41.81, a P/E/G ratio of 1.85 and a beta of 2.35.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $0.62 EPS for the quarter, beating analysts' consensus estimates of $0.44 by $0.18. The company had revenue of $1.31 billion during 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%.Robinhood Markets's quarterly revenue was up 32.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.42 earnings per share. On average, sell-side analysts anticipate that Robinhood Markets, Inc. will post 2.02 EPS for the current year.

Key Robinhood Markets News

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

• Positive Sentiment: Robinhood’s second-quarter results showed strong underlying momentum: revenue reached a record $1.31 billion, up 32% year over year, while EPS of $0.62 exceeded expectations and net income rose 48% to $573 million. The company also reported 13 business lines generating more than $100 million in annualized revenue, suggesting less dependence on crypto trading. Robinhood’s Crypto Slump Got the Headlines. Its 10x Business Got Ignored
• Positive Sentiment: The company is expanding in the United Kingdom with zero-fee cryptocurrency trading for eligible customers. The initiative could increase international users, trading volume and transaction revenue while strengthening Robinhood’s all-in-one investment platform. Can Robinhood’s UK Crypto Push Boost Volume and Trading Revenues?
• Positive Sentiment: Zerohash said banks, brokerages and payment companies can now connect to Robinhood Chain and assets such as Global Dollar, potentially improving institutional adoption and supporting Robinhood’s blockchain strategy. Zerohash Connects Financial Institutions to Robinhood Chain
• Neutral Sentiment: Robinhood is being identified as a potentially volatile growth stock ahead of July inflation data. Higher-than-expected CPI could pressure richly valued technology and speculative assets, while softer inflation could improve investor risk appetite. Stocks That Could Swing After July CPI
• Neutral Sentiment: Polymarket’s hiring of veterans from Robinhood, Coinbase and Nasdaq highlights increasing competition and regulatory focus in prediction markets, but the direct financial impact on HOOD is uncertain. Polymarket Builds U.S. Operation
• Negative Sentiment: Despite record earnings, investor attention remains focused on a 38% decline in crypto volume. That weakness could weigh on transaction revenue and helps explain why the stock has not fully reflected the strong quarterly results. Robinhood’s Diversified Business Lines

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Mizuho upped their price target on shares of Robinhood Markets from $115.00 to $130.00 and gave the company an "outperform" rating in a report on Thursday, July 2nd. Loop Capital set a $105.00 price objective on shares of Robinhood Markets in a report on Thursday, July 30th. JPMorgan Chase & Co. dropped their target price on shares of Robinhood Markets from $113.00 to $92.00 and set a "neutral" rating for the company in a research report on Thursday, April 23rd. The Goldman Sachs Group cut 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, July 30th. Finally, Needham & Company LLC reduced their price target on shares of Robinhood Markets from $123.00 to $120.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Twenty-one investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $120.52.

Insider Buying and Selling

In other news, Director Baiju Bhatt sold 49,223 shares of the business's stock in a transaction on Friday, July 24th. The shares were sold at an average price of $95.09, for a total transaction of $4,680,615.07. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven M. Quirk sold 19,377 shares of the company's stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $119.96, for a total transaction of $2,324,464.92. Following the transaction, the insider owned 62,612 shares of the company's stock, valued at $7,510,935.52. This represents a 23.63% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders purchased 680,000 shares of company stock valued at $55,306,560 and sold 631,263 shares valued at $66,929,157. 13.48% of the stock is owned by corporate insiders.

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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