Robinhood Markets (NASDAQ:HOOD) Shares Climb 2.2% - Here's Why

Key Points

• Robinhood shares rose 2.2% to $85.68, while trading volume was 49% below its average session volume.
• Potential tailwinds include Goldman Sachs’ view that a flight to safety after the Binance hack could benefit regulated crypto firms, and Robinhood’s push for a larger retail allocation in the Anthropic IPO.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and a $126.45 average price target, though Cantor Fitzgerald cut its target to $120. In its latest quarter, Robinhood beat EPS expectations but fell short on revenue.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) was up 2.2% on Tuesday. The stock traded as high as $85.76 and last traded at $85.68. Approximately 13,460,632 shares traded hands during trading, a decline of 49% from the average session volume of 26,487,277 shares. The stock had previously closed at $83.84.

Key Robinhood Markets News

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

• Positive Sentiment: Goldman Sachs sees a possible “flight to safety” after the reported Binance hack benefiting regulated crypto-related firms, including Robinhood. That could support HOOD if investors shift activity toward regulated platforms. Goldman Sachs names stock winners and losers after $6.3 bln Binance heist
• Positive Sentiment: Robinhood is advocating for a larger retail allocation in the Anthropic IPO. Greater access to high-profile offerings could help attract customers and deepen engagement, though the eventual allocation is uncertain. Robinhood Pushes for Bigger Retail Share of Anthropic IPO as Allocations Grow
• Positive Sentiment: A bullish Seeking Alpha commentary highlights Robinhood’s diversified trading revenue, Gold subscriptions and expanding products, arguing that customer and asset growth could support substantial long-term upside. This is an investment thesis, not a company forecast. Robinhood: A 1-Of-1 Company
• Neutral Sentiment: Bank Julius Baer increased its HOOD position by 9.1%, a modest institutional vote of confidence that may have limited near-term influence on the stock. Robinhood Markets, Inc. Position Lifted by Bank Julius Baer
• Negative Sentiment: Cantor Fitzgerald lowered its price target from $150 to $120 while maintaining an Overweight rating. The cut signals more cautious expectations, despite the firm still seeing upside. Cantor Fitzgerald price-target update
• Negative Sentiment: A Motley Fool article points to roughly 12% recent revenue growth as relatively modest and notes Robinhood’s historical reliance on crypto, raising questions about the pace and durability of growth despite its broader platform. Robinhood Stock: Should Investors Buy the Post-Earnings Dip?

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on HOOD shares. Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $160.00 price objective on shares of Robinhood Markets in a research note on Tuesday, September 8th. China Renaissance began coverage on Robinhood Markets in a research report on Tuesday, July 7th. They set a "buy" rating and a $156.80 target price on the stock. Wells Fargo & Company decreased their price target on Robinhood Markets from $120.00 to $100.00 and set an "equal weight" rating on the stock in a report on Wednesday, October 28th. Jefferies Financial Group raised their price target on Robinhood Markets from $127.00 to $140.00 and gave the stock a "buy" rating in a research report on Tuesday, September 8th. Finally, UBS Group reaffirmed a "buy" rating on shares of Robinhood Markets in a research note on Friday. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $126.45.

Robinhood Markets Trading Up 2.2%

The company has a quick ratio of 1.22, a current ratio of 1.24 and a debt-to-equity ratio of 0.26. The firm has a market cap of $77.03 billion, a P/E ratio of 39.48, a P/E/G ratio of 1.82 and a beta of 2.35. The company's 50 day simple moving average is $108.00 and its 200-day simple moving average is $92.86.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released its earnings results on Wednesday, October 28th. The company reported $0.60 EPS for the quarter, beating analysts' consensus estimates of $0.56 by $0.04. Robinhood Markets had a return on equity of 21.49% and a net margin of 39.04%. The firm 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 firm posted $0.61 earnings per share. The company's quarterly revenue was up 11.5% on a year-over-year basis. As a group, research analysts predict that Robinhood Markets, Inc. will post 2.18 earnings per share for the current fiscal year.

Insider Activity at Robinhood Markets

In other Robinhood Markets news, insider Steven Quirk sold 24,416 shares of the company's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $120.33, for a total value of $2,937,977.28. Following the transaction, the insider owned 77,839 shares of the company's stock, valued at $9,366,366.87. This represents a 23.88% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Tenev sold 375,000 shares of the stock in a transaction on Monday, October 5th. The stock was sold at an average price of $113.72, for a total value of $42,645,000.00. Following the completion of the sale, the chief executive officer owned 375,000 shares in the company, valued at approximately $42,645,000. The trade was a 50.00% 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. Insiders have sold 1,081,347 shares of company stock worth $127,543,680 over the last quarter. 13.48% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Wellington Management Group LLP raised its stake in shares of Robinhood Markets by 37.1% in the second quarter. Wellington Management Group LLP now owns 786,318 shares of the company's stock worth $78,852,000 after purchasing an additional 212,855 shares during the last quarter. EULAV Asset Management lifted its holdings in shares of Robinhood Markets by 47.9% during the third quarter. EULAV Asset Management now owns 325,342 shares of the company's stock worth $36,601,000 after purchasing an additional 105,342 shares during the period. Nykredit A S purchased a new stake in Robinhood Markets in the second quarter valued at approximately $29,008,000. QRG Capital Management Inc. boosted its position in Robinhood Markets by 14.8% in the second quarter. QRG Capital Management Inc. now owns 180,595 shares of the company's stock valued at $18,110,000 after buying an additional 23,253 shares during the last quarter. Finally, NewEdge Advisors LLC boosted its position in Robinhood Markets by 18.3% in the second quarter. NewEdge Advisors LLC now owns 68,920 shares of the company's stock valued at $6,911,000 after buying an additional 10,685 shares during the last quarter. Hedge funds and other institutional investors own 93.27% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.