Robinhood Markets' (HOOD) "Buy" Rating Reaffirmed at Needham & Company LLC

Key Points

• Needham & Company reaffirmed a Buy rating on Robinhood with a $135 price target, implying roughly a 28% upside from the current share price.
• Robinhood reported a strong quarter, beating estimates with $0.61 EPS versus $0.41 expected and revenue of $1.27 billion (up 100% year-over-year), signaling robust growth momentum.
• Significant insider selling has occurred recently: director Baiju Bhatt sold 1.33 million shares for about $170.9 million, and insiders sold roughly 2.87 million shares (~$357 million) over the past 90 days, though insiders still own about 19.95% of the company.

Robinhood Markets (NASDAQ:HOOD - Get Free Report)'s stock had its "buy" rating reaffirmed by Needham & Company LLC in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $135.00 price target on the stock. Needham & Company LLC's target price would suggest a potential upside of 28.28% from the company's current price.

A number of other brokerages have also commented on HOOD. Loop Capital set a $152.00 price objective on shares of Robinhood Markets in a research report on Thursday, December 11th. Truist Financial started coverage on shares of Robinhood Markets in a research report on Wednesday, December 17th. They set a "buy" rating and a $155.00 price target on the stock. Argus started coverage on shares of Robinhood Markets in a research note on Friday, January 9th. They set a "buy" rating and a $145.00 price objective for the company. Dbs Bank raised Robinhood Markets to a "moderate buy" rating in a research report on Wednesday, November 12th. Finally, Morgan Stanley upped their target price on Robinhood Markets from $146.00 to $147.00 and gave the stock an "equal weight" rating in a report on Monday, December 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $136.62.

Robinhood Markets Trading Down 1.6%

HOOD opened at $105.24 on Wednesday. The firm's fifty day simple moving average is $118.59 and its 200 day simple moving average is $119.98. Robinhood Markets has a 12 month low of $29.66 and a 12 month high of $153.86. The stock has a market capitalization of $94.63 billion, a P/E ratio of 43.67, a P/E/G ratio of 1.67 and a beta of 2.44.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its quarterly earnings data on Wednesday, November 5th. The company reported $0.61 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.20. Robinhood Markets had a return on equity of 21.74% and a net margin of 52.19%.The company had revenue of $1.27 billion during the quarter, compared to analysts' expectations of $1.15 billion. During the same period in the prior year, the firm earned $0.17 earnings per share. Robinhood Markets's revenue for the quarter was up 100.0% compared to the same quarter last year. On average, equities research analysts predict that Robinhood Markets will post 1.35 EPS for the current fiscal year.

Insider Buying and Selling at Robinhood Markets

In other Robinhood Markets news, Director Baiju Bhatt sold 1,330,000 shares of the business's stock in a transaction on Friday, November 7th. The stock was sold at an average price of $128.47, for a total transaction of $170,865,100.00. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Steven M. Quirk sold 49,942 shares of Robinhood Markets stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $131.15, for a total value of $6,549,893.30. Following the transaction, the insider owned 54,496 shares of the company's stock, valued at $7,147,150.40. This represents a 47.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 2,872,561 shares of company stock valued at $357,470,545. Company insiders own 19.95% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of HOOD. Hantz Financial Services Inc. boosted its position in shares of Robinhood Markets by 120.3% in the second quarter. Hantz Financial Services Inc. now owns 271 shares of the company's stock worth $25,000 after acquiring an additional 148 shares during the last quarter. Valley National Advisers Inc. grew its stake in shares of Robinhood Markets by 113.6% during the 3rd quarter. Valley National Advisers Inc. now owns 188 shares of the company's stock valued at $26,000 after buying an additional 100 shares during the period. Sound Income Strategies LLC increased its holdings in shares of Robinhood Markets by 152.6% during the 4th quarter. Sound Income Strategies LLC now owns 240 shares of the company's stock worth $26,000 after buying an additional 145 shares during the last quarter. Golden State Wealth Management LLC raised its position in shares of Robinhood Markets by 107.6% in the 3rd quarter. Golden State Wealth Management LLC now owns 191 shares of the company's stock worth $27,000 after buying an additional 99 shares during the period. Finally, Godsey & Gibb Inc. acquired a new position in Robinhood Markets in the fourth quarter valued at $28,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

About Robinhood Markets

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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