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

Key Points

• Robinhood Markets has a consensus analyst rating of “Moderate Buy”, based on 25 covering firms, with 18 buy ratings, five holds, and two sells. The average 1-year price target is about $107.88.
• The company’s latest quarter was mixed: EPS of $0.38 missed estimates by a penny and revenue of $1.07 billion fell short of expectations, even though revenue still rose 15.1% year over year.
• Recent headlines are mostly positive on growth initiatives, including Robinhood’s upcoming conference presentation, a recruiting win for its TradePMR unit, and renewed crypto access through the relisting of Algorand, though insider sales and regulatory concerns remain potential headwinds.

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) have earned a consensus rating of "Moderate Buy" from the twenty-five ratings firms that are presently covering the company, Marketbeat Ratings reports. Two analysts have rated the stock with a sell recommendation, five have assigned a hold recommendation and eighteen have given a buy recommendation to the company. The average 1 year target price among analysts that have covered the stock in the last year is $107.8750.

HOOD has been the topic of several research reports. Jefferies Financial Group dropped their price objective on Robinhood Markets from $88.00 to $84.00 and set a "buy" rating on the stock in a report on Monday, April 6th. Needham & Company LLC dropped their price objective on Robinhood Markets from $95.00 to $85.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Wall Street Zen lowered Robinhood Markets from a "hold" rating to a "sell" rating in a report on Saturday, February 14th. New Street Research set a $122.00 price objective on Robinhood Markets in a report on Thursday, March 5th. Finally, Piper Sandler dropped their price objective on Robinhood Markets from $155.00 to $135.00 and set an "overweight" rating on the stock in a report on Wednesday, February 11th.

Key Headlines Impacting Robinhood Markets

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

• Positive Sentiment: Robinhood’s management is set to present at the Bernstein Strategic Decisions Conference next week, which could give investors updates on trading trends, product growth, and strategy. Conference appearances often help support sentiment by keeping the growth story in focus.
• Positive Sentiment: TradePMR, a Robinhood unit, scored a recruiting win with a $3 billion Wells Fargo team, highlighting continued progress in Robinhood’s advisory/custody business and broader expansion beyond core trading. Robinhood’s TradePMR Scores a Recruiting Win With a $3 Billion Wells Fargo Team
• Positive Sentiment: Robinhood relisted Algorand for U.S. retail users, suggesting the company is leaning back into crypto access and potentially increasing engagement from active traders. Robinhood Relists Algorand Raising Questions For Crypto Strategy And Valuation
• Neutral Sentiment: Robinhood’s CFO Shiv Verma sold 5,436 shares under a pre-arranged 10b5-1 plan. The sale is routine, but insider selling can still weigh on short-term sentiment. Robinhood Markets, Inc. insider transaction details
• Negative Sentiment: Investors are worried that Robinhood may be hurt by Congress’s prediction-market bill frenzy, which could create more regulatory uncertainty around an area tied to event-driven trading activity. Why Robinhood (HOOD) stock may stand to lose from Congress's prediction market bill frenzy
• Negative Sentiment: Another bearish note argued that Robinhood’s customers are staying away, reflecting skepticism about near-term user engagement and trading volumes. Robinhood's Customers Are Staying Away, You Should Too
• Negative Sentiment: Recent market commentary also pointed to softer crypto volumes and insider sales as reasons the stock may have moved lower, since Robinhood remains highly sensitive to transaction activity in crypto. Robinhood Markets Inc. (HOOD): Graham Stephan Got Out Early

Robinhood Markets Price Performance

NASDAQ:HOOD opened at $75.76 on Thursday. The business's fifty day moving average price is $76.26 and its 200 day moving average price is $97.13. The firm has a market capitalization of $68.22 billion, a PE ratio of 36.60, a price-to-earnings-growth ratio of 2.40 and a beta of 2.29. Robinhood Markets has a 12 month low of $62.63 and a 12 month high of $153.86.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.01). The firm had revenue of $1.07 billion for the quarter, compared to analysts' expectations of $1.14 billion. Robinhood Markets had a return on equity of 21.39% and a net margin of 41.12%.The business's revenue for the quarter was up 15.1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.37 EPS. As a group, equities analysts anticipate that Robinhood Markets will post 1.88 EPS for the current year.

Insider Activity

In related news, Director Baiju Bhatt sold 57,261 shares of the firm's stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $86.38, for a total transaction of $4,946,205.18. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven M. Quirk sold 8,540 shares of the firm's stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $84.93, for a total value of $725,302.20. Following the transaction, the insider directly owned 53,183 shares in the company, valued at approximately $4,516,832.19. This represents a 13.84% 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 90 days, insiders have sold 493,343 shares of company stock valued at $35,864,569. Insiders own 14.47% of the company's stock.

Hedge Funds Weigh In On Robinhood Markets

A number of hedge funds and other institutional investors have recently made changes to their positions in HOOD. Vanguard Group Inc. grew its holdings in shares of Robinhood Markets by 24.9% during the third quarter. Vanguard Group Inc. now owns 94,437,054 shares of the company's stock worth $13,521,497,000 after buying an additional 18,824,923 shares during the last quarter. State Street Corp grew its holdings in shares of Robinhood Markets by 103.2% during the third quarter. State Street Corp now owns 32,246,155 shares of the company's stock worth $4,617,004,000 after buying an additional 16,375,734 shares during the last quarter. Norges Bank purchased a new position in shares of Robinhood Markets during the fourth quarter worth about $1,202,160,000. Amundi grew its holdings in shares of Robinhood Markets by 89.0% during the first quarter. Amundi now owns 6,385,232 shares of the company's stock worth $442,497,000 after buying an additional 3,007,103 shares during the last quarter. Finally, Corient Private Wealth LLC grew its holdings in shares of Robinhood Markets by 5,221.4% during the fourth quarter. Corient Private Wealth LLC now owns 2,559,848 shares of the company's stock worth $289,519,000 after buying an additional 2,511,743 shares during the last quarter. Hedge funds and other institutional investors own 93.27% of the company's stock.

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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