Robinhood Markets, Inc. (NASDAQ:HOOD) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Robinhood, with 21 buy ratings and five holds among 26 brokerages. The average 12-month price target is approximately $120.52.
• Robinhood’s latest quarterly results exceeded expectations, with EPS of $0.62 versus $0.44 expected and revenue of $1.31 billion, up 32.5% year over year.
• The company is pursuing growth through private-markets products and U.K. cryptocurrency services, but investors remain concerned about weakening crypto revenue. Recent price-target cuts and insider selling also highlight valuation and market-sensitivity risks.

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) have earned an average rating of "Moderate Buy" from the twenty-six brokerages that are covering the company, Marketbeat Ratings reports. Five equities research analysts have rated the stock with a hold recommendation and twenty-one have issued a buy recommendation on the company. The average twelve-month target price among brokers that have covered the stock in the last year is $120.5217.

Several research firms recently commented on HOOD. Citigroup reissued a "market outperform" rating on shares of Robinhood Markets in a report on Thursday, May 28th. Truist Financial lowered their price objective on Robinhood Markets from $120.00 to $100.00 and set a "buy" rating for the company in a research report on Monday, April 13th. Argus increased their price objective on Robinhood Markets from $90.00 to $110.00 and gave the company a "buy" rating in a report on Wednesday, June 17th. Weiss Ratings reissued a "hold (c)" rating on shares of Robinhood Markets in a research report on Wednesday, June 24th. Finally, Keefe, Bruyette & Woods decreased their target price on Robinhood Markets from $75.00 to $65.00 and set a "market perform" rating for the company in a research note on Wednesday, April 29th.

Robinhood Markets News Summary

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

• Positive Sentiment: New private-markets fund expands Robinhood’s addressable market. Robinhood Ventures Fund II (RVII) is launching an initial public offering that is expected to give retail investors access to a portfolio of early-stage private companies, including Y Combinator startups. The fund is reportedly targeting a $200 million U.S. IPO, potentially creating a new fee and asset-gathering opportunity for Robinhood. Robinhood launches fund giving retail investors access to private companies
• Positive Sentiment: Robinhood’s second-quarter earnings exceeded expectations, with earnings per share of $0.62 versus a $0.44 consensus estimate and revenue of $1.31 billion versus $1.29 billion expected. Revenue grew 32.5% year over year, supporting the long-term growth case despite the market’s initially muted reaction. Robinhood Stock Beat Expectations
• Positive Sentiment: Robinhood received approval to offer cryptocurrency services in the United Kingdom after joining the Financial Conduct Authority’s registered cryptoasset companies list. The approval provides an avenue for international expansion, although operating limits remain. Robinhood Gets UK's Permission to Offer Crypto Services
• Neutral Sentiment: Cantor Fitzgerald lowered its HOOD price target to $115 from $130 but maintained an “overweight” rating, saying the reduction reflected valuation assumptions rather than a weaker long-term outlook. Needham also cut its target to $120. Analyst conservative on crypto stock valuations
• Negative Sentiment: Investors remain concerned that weakening cryptocurrency revenue could offset strength in trading activity, cash balances and prediction markets. Those concerns contributed to the stock’s earlier pressure despite the earnings beat and leave HOOD sensitive to crypto-market conditions. ETFs to Watch as HOOD Sinks Despite Q2 Earnings Beat

Insider Buying and Selling

In other news, CEO Vladimir Tenev sold 375,000 shares of the business's stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $116.17, for a total transaction of $43,563,750.00. Following the completion of the sale, the chief executive officer owned 375,000 shares in the company, valued at approximately $43,563,750. The trade was a 50.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven M. Quirk sold 19,377 shares of the company's stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $119.96, for a total transaction of $2,324,464.92. Following the completion of the transaction, the insider owned 62,612 shares of the company's stock, valued at approximately $7,510,935.52. The trade was a 23.63% 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. Over the last three months, insiders bought 680,000 shares of company stock valued at $55,306,560 and sold 621,263 shares valued at $66,024,957. Company insiders own 13.48% of the company's stock.

Institutional Investors Weigh In On Robinhood Markets

Several hedge funds and other institutional investors have recently bought and sold shares of HOOD. Sound Income Strategies LLC grew its holdings in shares of 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. CYBER HORNET ETFs LLC boosted its position in shares of Robinhood Markets by 527.8% in the 4th 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. Elyxium Wealth LLC acquired a new stake in shares of Robinhood Markets in the 4th quarter valued at about $27,000. MV Capital Management Inc. purchased a new position in Robinhood Markets during the 4th quarter worth approximately $27,000. Finally, Swiss RE Ltd. purchased a new position in Robinhood Markets during the 4th quarter worth approximately $27,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

Robinhood Markets Trading Up 4.4%

Shares of NASDAQ:HOOD opened at $90.34 on Tuesday. Robinhood Markets has a 52 week low of $63.51 and a 52 week high of $153.86. The company's 50 day moving average is $98.35 and its two-hundred day moving average is $87.21. 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 has a market cap of $81.35 billion, a PE ratio of 39.80, a P/E/G ratio of 1.80 and a beta of 2.35.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.62 earnings per share for the quarter, beating analysts' consensus estimates of $0.44 by $0.18. The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.29 billion. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. The company's revenue was up 32.5% on a year-over-year basis. During the same period last year, the business earned $0.42 EPS. Equities analysts predict that Robinhood Markets will post 2 earnings per share for the current fiscal year.

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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