Robinhood Markets, Inc. $HOOD Shares Sold by Empowered Funds LLC

Key Points

• Empowered Funds LLC cut its Robinhood stake by 25.2% in the first quarter, selling 33,268 shares and retaining 98,580 shares valued at approximately $6.8 million. Institutional investors collectively own 93.27% of HOOD.
• Analyst sentiment remains favorable, with 21 Buy ratings and five Holds, producing a consensus “Moderate Buy” rating and an average price target of $120.52, although JPMorgan and Barclays recently lowered their targets.
• Robinhood reported strong quarterly results, including $1.31 billion in revenue and $0.62 in earnings per share, but July equity trading volume fell 19% month over month and the stock’s elevated valuation leaves it sensitive to weaker activity, market volatility and higher interest rates.

Empowered Funds LLC reduced its stake in Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) by 25.2% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 98,580 shares of the company's stock after selling 33,268 shares during the period. Empowered Funds LLC's holdings in Robinhood Markets were worth $6,832,000 at the end of the most recent reporting period.

A number of other large investors have also modified their holdings of HOOD. State Street Corp grew its position in Robinhood Markets by 103.2% in the third quarter. State Street Corp now owns 32,246,155 shares of the company's stock valued at $4,617,004,000 after acquiring an additional 16,375,734 shares in the last quarter. Norges Bank purchased a new position in shares of Robinhood Markets in the fourth quarter valued at $1,202,160,000. Amundi grew its holdings in Robinhood Markets by 89.0% during the 1st quarter. Amundi now owns 6,385,232 shares of the company's stock valued at $442,497,000 after purchasing an additional 3,007,103 shares in the last quarter. Corient Private Wealth LLC increased its stake in Robinhood Markets by 5,221.4% during the 4th quarter. Corient Private Wealth LLC now owns 2,559,848 shares of the company's stock worth $289,519,000 after buying an additional 2,511,743 shares during the period. Finally, Jennison Associates LLC increased its stake in Robinhood Markets by 95.7% during the 4th quarter. Jennison Associates LLC now owns 4,412,036 shares of the company's stock worth $499,001,000 after buying an additional 2,157,372 shares during the period. Institutional investors and hedge funds own 93.27% of the company's stock.

Analyst Ratings Changes

HOOD has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. cut their price objective on shares of Robinhood Markets from $113.00 to $92.00 and set a "neutral" rating on the stock in a report on Thursday, April 23rd. Piper Sandler restated an "overweight" rating on shares of Robinhood Markets in a research note on Thursday, July 2nd. Barclays dropped their target price on Robinhood Markets from $122.00 to $105.00 and set an "overweight" rating on the stock in a research report on Thursday, July 30th. Sanford C. Bernstein boosted their price target on Robinhood Markets from $130.00 to $160.00 and gave the stock an "outperform" rating in a research note on Monday, July 20th. Finally, Loop Capital set a $105.00 price target on Robinhood Markets in a report on Thursday, July 30th. Twenty-one analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, Robinhood Markets has a consensus rating of "Moderate Buy" and a consensus target price of $120.52.

Key Robinhood Markets News

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

• Positive Sentiment: Private-market expansion strengthens Robinhood’s growth strategy. Robinhood Ventures Fund II raised $225.5 million through its IPO, giving retail investors access to early- and growth-stage startups, including companies associated with Y Combinator. The initiative could broaden Robinhood’s product lineup, attract more assets and reinforce its appeal as an alternative-investment platform. Robinhood's second venture fund debuts, drawing retail money into private markets
• Positive Sentiment: Faster fund launches could create additional fee and distribution opportunities. Robinhood plans to accelerate the debut of publicly traded closed-end funds, cutting the time from inception to launch to roughly six months. A faster product pipeline may help the company capitalize more quickly on retail demand for private-market exposure. Robinhood Plans to Speed Up Debuts for Publicly Traded Funds
• Neutral Sentiment: Management remains constructive on markets but flags a major macro risk. Chief Investment Officer Stephanie Guild said the artificial-intelligence boom could continue supporting equities, while warning that heavy AI capital spending could push the 10-year Treasury yield above 5%. Higher yields could pressure richly valued growth and financial stocks, including HOOD. Robinhood Exec Says AI Boom Could Keep Stocks Ripping Higher but Bonds Could Crash the Party
• Negative Sentiment: July equity trading activity weakened sequentially. Robinhood’s equity average daily volume declined 19% from June, although it remained 56% higher year over year. The month-to-month decline raises concerns about near-term transaction-based revenue and comes after the stock’s strong run, which leaves valuation sensitivity elevated. Robinhood Markets equity ADV in July falls 19% M/M, jumps 56% Y/Y
• Negative Sentiment: Investors may be taking profits despite strong quarterly results. Robinhood recently reported record quarterly revenue of $1.31 billion and earnings per share of $0.62, above expectations. However, the stock’s elevated valuation—roughly 42 times earnings—leaves it vulnerable to disappointing activity trends, crypto volatility or higher interest rates.

Robinhood Markets Price Performance

Shares of NASDAQ HOOD opened at $95.56 on Friday. Robinhood Markets, Inc. has a twelve month low of $63.51 and a twelve month high of $153.86. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.23. The company has a market capitalization of $85.92 billion, a price-to-earnings ratio of 42.10, a price-to-earnings-growth ratio of 1.87 and a beta of 2.35. The business has a 50 day simple moving average of $100.09 and a 200-day simple moving average of $86.43.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its earnings results 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 net margin of 42.01% and a return on equity of 22.43%. The company had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.29 billion. During the same period in the prior year, the company earned $0.42 earnings per share. The firm's revenue was up 32.5% compared to the same quarter last year. As a group, equities research analysts expect that Robinhood Markets, Inc. will post 2.02 earnings per share for the current year.

Insider Activity

In other Robinhood Markets news, Director Oluwadara Johnson Treseder sold 3,750 shares of the firm's stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $117.50, for a total value of $440,625.00. Following the transaction, the director owned 72,442 shares of the company's stock, valued at $8,511,935. This trade represents a 4.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the firm's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $90.42, for a total transaction of $904,200.00. Following the completion of the transaction, the insider directly owned 461,396 shares in the company, valued at $41,719,426.32. This represents a 2.12% 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 acquired 680,000 shares of company stock valued at $55,306,560 and have sold 625,827 shares valued at $66,508,628. Insiders own 13.48% of the company's stock.

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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