Robinhood Markets (NASDAQ:HOOD) Shares Climb 2% - What's Next?

Key Points

• Robinhood shares rose 2% to $87.41 in Wednesday trading, while volume was 24% below its daily average.
• Quarterly EPS of $0.60 beat estimates, but revenue of $1.42 billion fell short; crypto revenue plunged 55%, and overall revenue growth slowed to 12%.
• Analysts maintain a consensus “Moderate Buy” rating and $126.45 price target, though Zacks downgraded the stock to “hold.”

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s share price shot up 2% during trading on Wednesday. The stock traded as high as $88.79 and last traded at $87.41. 20,020,971 shares were traded during mid-day trading, a decline of 24% from the average daily volume of 26,453,906 shares. The stock had previously closed at $85.68.

Robinhood Markets News Roundup

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

• Positive Sentiment: Management highlighted cost discipline, growing customer deposits, and expansion into prediction markets and banking on the Q3 earnings call. EPS topped estimates, though revenue fell short of expectations. Robinhood Q3 Earnings Call Highlights Cost Discipline and Expansion
• Positive Sentiment: Rapid growth in transfers of tokenized stocks on Robinhood’s blockchain could create additional fee revenue, supporting optimism about newer business lines. This 1 Market Niche Is Growing at an Exponential Rate for Robinhood
• Positive Sentiment: A Goldman Sachs assessment suggested regulated platforms such as Robinhood could benefit if the Binance hack prompts crypto customers to favor regulated firms. Goldman Sachs names stock winners and losers after $6.3 bln Binance heist
• Neutral Sentiment: SkyFi’s satellite-intelligence service is now available through Robinhood Agents, adding a new capability to the platform; the near-term revenue impact is unclear. SkyFi's Satellite Intelligence Now Available as a Robinhood Agent App
• Negative Sentiment: Zacks Research downgraded HOOD from “strong-buy” to “hold,” adding pressure amid concerns about the company’s growth outlook. Zacks Research recommendations
• Negative Sentiment: Crypto revenue dropped 55% in Q3, while total revenue growth slowed to 12%, highlighting exposure to cooling crypto activity. Robinhood in a “Food Fight” for Anthropic IPO Shares as Crypto Trading Cools

Wall Street Analyst Weigh In

HOOD has been the subject of several analyst reports. KeyCorp reduced their price target on Robinhood Markets from $140.00 to $135.00 and set an "overweight" rating for the company in a report on Wednesday, October 28th. Citizens Jmp reissued a "market outperform" rating and set a $165.00 price objective on shares of Robinhood Markets in a research report on Wednesday, October 28th. Deutsche Bank Aktiengesellschaft cut their price objective on shares of Robinhood Markets from $138.00 to $134.00 and set a "buy" rating on the stock in a research report on Tuesday, September 29th. Needham & Company LLC reduced their price objective on shares of Robinhood Markets from $126.00 to $116.00 and set a "buy" rating for the company in a research note on Wednesday, October 28th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and issued a $135.00 target price on shares of Robinhood Markets in a report on Wednesday, October 28th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $126.45.

Robinhood Markets Trading Up 2.0%

The stock has a 50-day simple moving average of $107.65 and a two-hundred day simple moving average of $92.69. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.24 and a current ratio of 1.24. The firm has a market cap of $78.59 billion, a PE ratio of 40.28, a price-to-earnings-growth ratio of 1.82 and a beta of 2.56.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its earnings results on Wednesday, October 28th. The company reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.04. Robinhood Markets had a net margin of 39.04% and a return on equity of 21.49%. The business had revenue of $1.42 billion for the quarter, compared to analysts' expectations of $1.44 billion. During the same quarter in the prior year, the business earned $0.61 EPS. The business's revenue for the quarter was up 11.5% compared to the same quarter last year. As a group, sell-side analysts anticipate that Robinhood Markets, Inc. will post 2.11 EPS for the current year.

Insider Activity at Robinhood Markets

In related news, insider Daniel Gallagher, Jr. sold 10,000 shares of the stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $113.71, for a total transaction of $1,137,100.00. Following the transaction, the insider owned 499,943 shares in the company, valued at $56,848,518.53. This represents a 1.96% decrease in their ownership of the stock. The sale was disclosed in a document filed 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, CFO Shiv Verma sold 11,472 shares of the firm'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 completion of the sale, the chief financial officer owned 56,858 shares in the company, valued at $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. Insiders have sold 1,085,820 shares of company stock valued at $127,925,316 over the last quarter. 13.48% of the stock is owned by company insiders.

Hedge Funds Weigh In On Robinhood Markets

A number of institutional investors and hedge funds have recently modified their holdings of the company. Gryphon Financial Partners LLC lifted its position in shares of Robinhood Markets by 2.1% in the third quarter. Gryphon Financial Partners LLC now owns 13,675 shares of the company's stock valued at $1,538,000 after acquiring an additional 276 shares in the last quarter. AlphaCore Capital LLC lifted its holdings in Robinhood Markets by 321.1% in the 3rd quarter. AlphaCore Capital LLC now owns 9,091 shares of the company's stock worth $1,023,000 after purchasing an additional 6,932 shares in the last quarter. Clear Wave Wealth Management LLC lifted its holdings in Robinhood Markets by 51.3% in the 3rd quarter. Clear Wave Wealth Management LLC now owns 5,440 shares of the company's stock worth $612,000 after purchasing an additional 1,845 shares in the last quarter. Fulcrum Asset Management LLP bought a new position in Robinhood Markets in the 3rd quarter worth approximately $174,000. Finally, Allspring Global Investments Holdings LLC boosted its stake in Robinhood Markets by 79.9% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 360,644 shares of the company's stock worth $40,086,000 after purchasing an additional 160,229 shares during the period. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

About Robinhood Markets

Robinhood Markets, Inc is a financial services company that operates a digital brokerage platform. Founded in 2013 by Vlad Tenev and Baiju Bhatt, the company became known for offering commission-free trading and a mobile-first investing experience designed to broaden access to financial markets.

Through its platform, Robinhood provides brokerage services for stocks, exchange-traded funds, options and other investments. Its offerings also include cryptocurrency trading, individual retirement accounts, margin investing, cash management services and Robinhood Gold, a subscription-based product that provides additional features and benefits.

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