Robinhood Markets, Inc. (NASDAQ:HOOD) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Robinhood Markets has a consensus “Moderate Buy” rating from 23 analysts, with 18 Buy ratings and five Hold ratings. The average 12-month price target is about $110.73.
• The company’s latest earnings report showed $0.38 EPS on $1.07 billion in revenue, narrowly missing analyst expectations on both measures. Revenue still rose 15.1% year over year, and analysts expect full-year EPS of 1.83.
• Recent catalysts include Robinhood’s securities arm winning approval to underwrite IPOs and strong platform traffic tied to the SpaceX IPO. However, the surge also caused some trading issues, and insiders have recently sold shares.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) has received a consensus rating of "Moderate Buy" from the twenty-three analysts that are currently covering the stock, MarketBeat reports. Five analysts have rated the stock with a hold recommendation and eighteen have issued a buy recommendation on the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $110.7273.

Several equities research analysts have commented on the stock. Truist Financial lowered their target price on shares of Robinhood Markets from $120.00 to $100.00 and set a "buy" rating for the company in a research note on Monday, April 13th. Sanford C. Bernstein reiterated an "outperform" rating and issued a $130.00 price target on shares of Robinhood Markets in a report on Tuesday, April 14th. Weiss Ratings reiterated a "hold (c)" rating on shares of Robinhood Markets in a report on Friday, March 27th. New Street Research set a $122.00 price target on shares of Robinhood Markets in a report on Thursday, March 5th. Finally, Jefferies Financial Group reduced their price target on shares of Robinhood Markets from $88.00 to $84.00 and set a "buy" rating for the company in a report on Monday, April 6th.

Insider Buying and Selling

In other news, insider Steven M. Quirk sold 10,837 shares of the company's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $85.91, for a total value of $931,006.67. Following the completion of the transaction, the insider owned 81,989 shares in the company, valued at $7,043,674.99. This represents a 11.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Tenev sold 375,000 shares of the company's stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $69.83, for a total transaction of $26,186,250.00. Following the completion of the transaction, the chief executive officer owned 375,000 shares of the company's stock, valued at $26,186,250. This trade represents a 50.00% 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 three months, insiders have acquired 680,000 shares of company stock valued at $55,306,560 and have sold 571,602 shares valued at $41,959,746. 19.95% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. CYBER HORNET ETFs LLC boosted its holdings in Robinhood Markets by 527.8% during the fourth quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company's stock worth $26,000 after purchasing an additional 190 shares during the last quarter. MV Capital Management Inc. acquired a new position in Robinhood Markets during the fourth quarter worth $27,000. Swiss RE Ltd. acquired a new position in Robinhood Markets during the fourth quarter worth $27,000. Elyxium Wealth LLC acquired a new position in Robinhood Markets during the fourth quarter worth $27,000. Finally, Sound Income Strategies LLC boosted its holdings in Robinhood Markets by 152.6% during the fourth quarter. Sound Income Strategies LLC now owns 240 shares of the company's stock worth $26,000 after purchasing an additional 145 shares during the last quarter. Institutional investors and hedge funds own 93.27% of the company's stock.

Robinhood Markets Stock Performance

Shares of NASDAQ:HOOD opened at $93.19 on Monday. Robinhood Markets has a 52 week low of $63.51 and a 52 week high of $153.86. The company has a market capitalization of $83.92 billion, a PE ratio of 45.02, a PEG ratio of 2.33 and a beta of 2.35. The company has a 50 day moving average price of $80.09 and a two-hundred day moving average price of $92.02.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its earnings results on Tuesday, April 28th. The company reported $0.38 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.01). Robinhood Markets had a net margin of 41.12% and a return on equity of 21.39%. The firm had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.14 billion. During the same period in the previous year, the company posted $0.37 EPS. The firm's revenue for the quarter was up 15.1% on a year-over-year basis. On average, sell-side analysts forecast that Robinhood Markets will post 1.83 earnings per share for the current year.

Robinhood Markets News Summary

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

• Positive Sentiment: Robinhood’s securities arm received approval to underwrite IPOs, potentially expanding revenue opportunities and giving the company a bigger role in future public offerings. Robinhood Just Won Approval to Underwrite IPOs, Right Before SpaceX's Blockbuster Market Debut. Here's Why the Timing Matters.
• Positive Sentiment: SpaceX’s IPO sparked “record-breaking” traffic on Robinhood’s platform, highlighting heavy retail engagement and the value of its IPO-access business. Robinhood sees ‘record-breaking' traffic after SpaceX stock debuts
• Positive Sentiment: Needham raised its price target on Robinhood to $97 and reiterated a buy rating, adding to bullish sentiment around the stock. Benzinga report on Needham price target raise
• Neutral Sentiment: Robinhood saw unusual options activity, with traders buying a much larger-than-normal volume of call options, suggesting heightened speculation around the shares.
• Neutral Sentiment: The stock also benefited from a broader lift in financial stocks and related retail brokerage names during Friday’s session. Sector Update: Financial Stocks Advance Late Afternoon
• Negative Sentiment: Robinhood’s platform experienced trading issues amid the surge in SpaceX-related demand, which could raise concerns about reliability during peak activity. HOOD Stock: Robinhood Buckles Under SpaceX IPO Demand, Users Report Trading Issues
• Negative Sentiment: ARK Invest reportedly sold shares of Robinhood, which may temper enthusiasm for some investors. HOOD Stock Gains Overnight: Cathie Wood’s ARK Sells Shares Even As Robinhood Stacks Up Fresh Catalysts

Robinhood Markets Company Profile

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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