Robinhood Markets (NASDAQ:HOOD) Shares Climb 3.2% - Here's What Happened

Key Points

• Robinhood shares rose 3.2% to $80.91, while trading volume was 38% below its average session volume.
• Quarterly EPS of $0.60 beat analysts’ $0.56 estimate, but revenue of $1.42 billion fell slightly short of the $1.44 billion consensus.
• Prediction markets generated $173 million last quarter—more than crypto—and analysts’ average price target is $126.45; regulatory uncertainty remains a risk for the growing business.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shares rose 3.2% on Friday. The stock traded as high as $81.60 and last traded at $80.91. 16,369,241 shares changed hands during trading, a decline of 38% from the average session volume of 26,436,262 shares. The stock had previously closed at $78.39.

Robinhood Markets News Summary

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

• Positive Sentiment: Cathie Wood is buying HOOD again after selling shares ahead of a steep decline, a high-profile vote of confidence that may help sentiment. Cathie Wood is buying HOOD again
• Positive Sentiment: Robinhood generated $173 million from prediction markets last quarter—more than from crypto. The segment’s growth helped offset weaker crypto sales and could provide a new revenue driver, though regulatory uncertainty remains. Robinhood’s prediction-market revenue
• Neutral Sentiment: Robinhood’s latest quarter beat analysts’ earnings-per-share estimate, but revenue came in slightly below consensus. Results also highlighted cost discipline and customer-deposit growth. Robinhood Q3 earnings call highlights
• Neutral Sentiment: Two insiders recently sold shares: Daniel Gallagher, Jr. sold 10,000 and CAO Dara Bazzano sold 4,473. Both transactions were made under pre-arranged Rule 10b5-1 plans, so they may be less informative about current views of the stock. Gallagher share sale
• Negative Sentiment: Bitcoin’s decline recently pressured Robinhood and other retail-focused fintech stocks, underscoring the risk that reduced crypto activity could weigh on results. Political shifts in Congress have also raised concerns about slower financial deregulation and greater industry scrutiny. Bitcoin and political concerns weigh on fintech shares

Analysts Set New Price Targets

A number of equities research analysts have commented on the stock. Benchmark raised shares of Robinhood Markets to a "strong-buy" rating in a research report on Wednesday, September 9th. Rosenblatt Securities reissued a "buy" rating and set a $135.00 price target on shares of Robinhood Markets in a report on Wednesday, October 28th. Citizens Jmp restated a "market outperform" rating and issued a $165.00 price target on shares of Robinhood Markets in a research note on Wednesday, October 28th. Mizuho lifted their price objective on Robinhood Markets from $130.00 to $140.00 and gave the stock an "outperform" rating in a report on Wednesday, September 9th. Finally, Wells Fargo & Company reduced their price objective on Robinhood Markets from $120.00 to $100.00 and set an "equal weight" rating for the company in a research report on Wednesday, October 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $126.45.

Robinhood Markets Stock Performance

The business's 50-day moving average price is $106.55 and its 200-day moving average price is $92.42. 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 stock has a market cap of $72.74 billion, a P/E ratio of 37.29, a P/E/G ratio of 1.95 and a beta of 2.56.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The company reported $0.60 EPS for the quarter, topping the consensus estimate of $0.56 by $0.04. The firm had revenue of $1.42 billion during the quarter, compared to analyst estimates of $1.44 billion. Robinhood Markets had a return on equity of 21.49% and a net margin of 39.04%. Robinhood Markets's revenue was up 11.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.61 EPS. As a group, sell-side analysts expect that Robinhood Markets, Inc. will post 2.10 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CAO Dara Bazzano sold 4,473 shares of the firm's stock in a transaction dated Monday, November 2nd. The stock was sold at an average price of $85.32, for a total value of $381,636.36. Following the transaction, the chief accounting officer owned 3,000 shares of the company's stock, valued at $255,960. This trade represents a 59.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Baiju Bhatt sold 50,912 shares of Robinhood Markets stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $101.40, for a total value of $5,162,476.80. 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 90 days, insiders have sold 1,095,820 shares of company stock valued at $128,775,816. 13.48% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Robinhood Markets

A number of hedge funds have recently made changes to their positions in the business. C M Bidwell & Associates Ltd. bought a new stake in shares of Robinhood Markets in the 2nd quarter valued at about $27,000. James T. Borello RIA purchased a new stake in shares of Robinhood Markets in the 3rd quarter worth approximately $29,000. Cassaday & Co Wealth Management LLC bought a new position in shares of Robinhood Markets during the first quarter valued at approximately $33,000. Glen Eagle Advisors LLC boosted its stake in shares of Robinhood Markets by 100.7% during the first quarter. Glen Eagle Advisors LLC now owns 568 shares of the company's stock valued at $39,000 after purchasing an additional 285 shares in the last quarter. Finally, Continuum Advisory LLC purchased a new position in Robinhood Markets during the second quarter valued at approximately $40,000. Institutional investors own 93.27% of the company's stock.

About Robinhood Markets

Robinhood Markets, Inc operates a digital financial services platform that gives customers access to investing and financial products through its website and mobile app. Its offerings include trading in stocks, exchange-traded funds, options and cryptocurrencies, as well as retirement accounts and cash-management services.

Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood built its business around making financial services more accessible through a mobile-first platform. The company is headquartered in Menlo Park, California, and serves customers in the United States and select international markets.

Robinhood also offers subscription-based services through Robinhood Gold, which provides eligible customers with additional account features.

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