QRG Capital Management Inc. Raises Stake in Robinhood Markets, Inc. $HOOD

Key Points

• QRG Capital Management increased its Robinhood stake by 14.8% in the second quarter, adding 23,253 shares to own 180,595 shares valued at approximately $18.1 million. Institutional investors collectively own 93.27% of HOOD.
• Analysts remain broadly bullish, with Robinhood receiving a consensus “Moderate Buy” rating and an average price target of $130.70; several firms recently raised their targets, including Goldman Sachs to $142.
• Robinhood exceeded quarterly expectations, reporting $0.62 in earnings per share and $1.31 billion in revenue, while revenue grew 32.5% year over year. However, insiders have sold significant shares recently, and the stock’s elevated valuation and regulatory risks remain concerns.

QRG Capital Management Inc. lifted its stake in Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) by 14.8% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 180,595 shares of the company's stock after purchasing an additional 23,253 shares during the period. QRG Capital Management Inc.'s holdings in Robinhood Markets were worth $18,110,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. MV Capital Management Inc. bought a new position in Robinhood Markets in the fourth quarter worth approximately $27,000. C M Bidwell & Associates Ltd. purchased a new stake in shares of Robinhood Markets in the 2nd quarter worth $27,000. Glen Eagle Advisors LLC grew its position in shares of Robinhood Markets by 812.9% during the 4th quarter. Glen Eagle Advisors LLC now owns 283 shares of the company's stock worth $32,000 after buying an additional 252 shares in the last quarter. SHP Wealth Management purchased a new position in shares of Robinhood Markets during the fourth quarter valued at $32,000. Finally, Copos Capital S.a r.l. purchased a new stake in Robinhood Markets in the fourth quarter worth about $33,000. Institutional investors own 93.27% of the company's stock.

Analysts Set New Price Targets

HOOD has been the topic of a number of research reports. Argus raised their target price on shares of Robinhood Markets from $90.00 to $110.00 and gave the company a "buy" rating in a research report on Wednesday, June 17th. Benchmark raised shares of Robinhood Markets to a "strong-buy" rating in a report on Wednesday, September 9th. The Goldman Sachs Group upped their target price on Robinhood Markets from $124.00 to $142.00 and gave the stock a "buy" rating in a report on Tuesday, September 8th. Scotiabank began coverage on Robinhood Markets in a report on Wednesday, September 2nd. They issued a "sector outperform" rating and a $136.00 price target on the stock. Finally, Wall Street Zen raised Robinhood Markets from a "strong sell" rating to a "sell" rating in a research report on Sunday, July 12th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $130.70.

Robinhood Markets Price Performance

NASDAQ HOOD opened at $122.70 on Thursday. The firm's fifty day simple moving average is $104.01 and its two-hundred day simple moving average is $91.95. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.23. Robinhood Markets, Inc. has a 12-month low of $63.51 and a 12-month high of $153.86. The firm has a market capitalization of $110.32 billion, a P/E ratio of 54.05, a P/E/G ratio of 2.48 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 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 firm had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.29 billion. During the same quarter last year, the firm earned $0.42 EPS. The business's quarterly revenue was up 32.5% on a year-over-year basis. Analysts forecast that Robinhood Markets, Inc. will post 2.15 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of Robinhood Markets stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $122.43, for a total value of $1,224,300.00. Following the completion of the sale, the insider directly owned 509,943 shares in the company, valued at $62,432,321.49. This trade represents a 1.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Shiv Verma sold 11,472 shares of the business's stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $110.42, for a total transaction of $1,266,738.24. Following the sale, the chief financial officer directly owned 56,858 shares in the company, valued at approximately $6,278,260.36. This represents a 16.79% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 880,287 shares of company stock valued at $102,490,753. 13.48% of the stock is currently owned by corporate insiders.

Key Robinhood Markets News

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

• Positive Sentiment: Crypto and prediction-market expansion: Robinhood is broadening its prediction-markets offering beyond sports, with crypto-linked contracts gaining share. CEO Vlad Tenev has said crypto could eventually dominate prediction markets, potentially expanding trading activity and revenue. Robinhood's Prediction Markets Move Beyond Sports
• Positive Sentiment: Robinhood Chain development: Robinhood Chain integrated with Zerion, while decentralized-exchange volume reportedly reached $1.88 billion. The integration could improve access to decentralized finance and support adoption of Robinhood’s blockchain ecosystem. Robinhood Chain integrates with Zerion
• Positive Sentiment: Bullish long-term outlook: Recent commentary highlights Robinhood’s improving profitability, potential leadership in tokenized stocks, and the possibility of 20%-plus revenue growth in 2027 as crypto activity recovers. Analysts also maintain a consensus “Moderate Buy” recommendation. Robinhood bullish investment thesis
• Neutral Sentiment: High investor attention: HOOD remains a heavily watched and trending stock, which can increase trading interest but may also contribute to heightened volatility. Robinhood trending-stock analysis
• Negative Sentiment: CEO share sale: CEO Vladimir Tenev sold approximately $32.5 million of HOOD shares, reducing his direct position by half. The transaction occurred under a pre-arranged Rule 10b5-1 plan, which lessens its signaling value but can still weigh on sentiment. SEC insider transaction filing
• Negative Sentiment: Valuation and regulatory risk: With shares trading well above their longer-term moving averages and at a relatively high earnings multiple, investors may be taking profits. Expansion into prediction markets also brings increased regulatory scrutiny.

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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