Robinhood Markets (NASDAQ:HOOD) Shares Up 1.6% on Analyst Upgrade

Key Points

• Robinhood shares rose 1.6% after Deutsche Bank raised its price target from $136 to $138 and maintained a “buy” rating. The stock traded near $114.33, while the analyst consensus remained “Moderate Buy” with an average target of $130.88.
• Analysts remain broadly bullish, with 25 of 28 covering firms rating the stock Buy or Strong Buy, although price targets ranged from $105 to $165.
• Recent operating results exceeded expectations: Robinhood reported quarterly EPS of $0.62 versus a $0.44 estimate, while revenue grew 32.5% year over year to $1.31 billion. Insiders, however, sold roughly $63.7 million of stock over the past quarter.

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) traded up 1.6% on Monday after Deutsche Bank Aktiengesellschaft raised their price target on the stock from $136.00 to $138.00. Deutsche Bank Aktiengesellschaft currently has a buy rating on the stock. Robinhood Markets traded as high as $116.35 and last traded at $114.33. Approximately 16,858,683 shares were traded during mid-day trading, a decline of 39% from the average session volume of 27,655,273 shares. The stock had previously closed at $112.57.

A number of other equities research analysts have also recently commented on the stock. Needham & Company LLC lowered their price objective on shares of Robinhood Markets from $123.00 to $120.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Citizens Jmp upped their price target on shares of Robinhood Markets from $155.00 to $165.00 and gave the company a "market outperform" rating in a report on Friday. Mizuho increased their price target on shares of Robinhood Markets from $130.00 to $140.00 and gave the company an "outperform" rating in a research report on Wednesday, September 9th. Scotiabank started coverage on shares of Robinhood Markets in a research note on Wednesday, September 2nd. They set a "sector outperform" rating and a $136.00 price objective for the company. Finally, Barclays cut their price objective on Robinhood Markets from $122.00 to $105.00 and set an "overweight" rating for the company in a research report on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Robinhood Markets currently has a consensus rating of "Moderate Buy" and an average target price of $130.88.

Insider Buying and Selling at Robinhood Markets

In other news, CFO Shiv Verma sold 3,982 shares of the business's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $95.07, for a total value of $378,568.74. Following the completion of the transaction, the chief financial officer owned 51,963 shares of the company's stock, valued at $4,940,122.41. The trade was a 7.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Oluwadara Treseder sold 1,875 shares of the company's stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $125.00, for a total transaction of $234,375.00. Following the transaction, the director directly owned 70,567 shares in the company, valued at $8,820,875. The trade was a 2.59% 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. Over the last quarter, insiders sold 566,276 shares of company stock valued at $63,721,282. Corporate insiders own 13.48% of the company's stock.

Key Stories Impacting Robinhood Markets

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

• Positive Sentiment: Deutsche Bank raised its price target to $138 from $136 and upgraded Robinhood to “buy,” implying roughly 21% upside from the referenced share price. The upgrade reinforces confidence in Robinhood’s growth prospects and may support investor sentiment.
• Positive Sentiment: Robinhood and Crypto.com are asking the U.S. Supreme Court to clarify the legal framework for prediction markets. A favorable ruling could provide regulatory certainty and help Robinhood expand event-contract offerings, a potentially important new revenue channel. Crypto.com, Robinhood Ask SCOTUS Ruling on Prediction Markets
• Positive Sentiment: Robinhood’s multiyear partnership with Crypto.com expands its prediction-market strategy. The arrangement allows selected event contracts to use OG.com’s CFTC-regulated exchange and clearing infrastructure, while Robinhood receives equity stakes in Crypto.com and OG.com. Robinhood Expands Prediction Markets With Crypto.com Partnership
• Positive Sentiment: CEO Vlad Tenev defended Robinhood’s stock-tokenization initiative amid criticism from AMC’s CEO, arguing that investors globally should have access to high-quality financial assets. Successful tokenization could broaden Robinhood’s addressable market and strengthen its blockchain platform. Robinhood CEO Responds to AMC Chief on Stock Tokenization
• Neutral Sentiment: August operating metrics were mixed: customer counts, assets and equity balances grew strongly, but transaction-based activity remained uneven. This supports longer-term platform growth while highlighting sensitivity to trading volumes and market conditions. HOOD’s August Metrics Strong Amid Mixed Trading Trends
• Negative Sentiment: Robinhood’s August crypto volume rose 61% sequentially but remained 38% below the prior year, signaling that crypto-related transaction revenue may still face year-over-year pressure. Robinhood Crypto Volume Rises 61% in August but Remains Below Last Year

Institutional Trading of Robinhood Markets

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. CYBER HORNET ETFs LLC grew its holdings in Robinhood Markets by 527.8% in the fourth quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company's stock valued at $26,000 after purchasing an additional 190 shares during the period. MV Capital Management Inc. purchased a new position in Robinhood Markets during the fourth quarter worth approximately $27,000. Elyxium Wealth LLC acquired a new position in shares of Robinhood Markets in the 4th quarter valued at $27,000. C M Bidwell & Associates Ltd. acquired a new position in shares of Robinhood Markets in the 2nd quarter valued at $27,000. Finally, SHP Wealth Management acquired a new position in shares of Robinhood Markets in the 4th quarter valued at $32,000. Hedge funds and other institutional investors own 93.27% of the company's stock.

Robinhood Markets Price Performance

The company has a market capitalization of $102.79 billion, a PE ratio of 50.37, a PEG ratio of 2.30 and a beta of 2.34. 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's 50 day moving average price is $103.62 and its 200-day moving average price is $89.80.

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 the consensus estimate of $0.44 by $0.18. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%.The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same period last year, the company posted $0.42 EPS. The business's quarterly revenue was up 32.5% on a year-over-year basis. On average, sell-side analysts forecast that Robinhood Markets, Inc. will post 2.11 earnings per share for the current fiscal year.

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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