Robinhood Markets (NASDAQ:HOOD) Shares Up 1% on Analyst Upgrade

Key Points

• Robinhood shares rose 1% after Needham & Company lifted its price target from $85 to $97 and kept a buy rating. The stock traded as high as $96.10 on heavy volume.
• Other analysts remain mixed on HOOD, with some lowering targets even as the broader consensus still sits at Moderate Buy and a $110.73 average price target.
• Recent catalysts around Robinhood include its approval to act as an IPO underwriter and record traffic following SpaceX’s debut, both seen as potential drivers of higher engagement and trading activity.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s share price was up 1% on Friday after Needham & Company LLC raised their price target on the stock from $85.00 to $97.00. Needham & Company LLC currently has a buy rating on the stock. Robinhood Markets traded as high as $96.10 and last traded at $93.19. Approximately 32,873,844 shares changed hands during trading, an increase of 10% from the average daily volume of 29,969,486 shares. The stock had previously closed at $92.23.

A number of other brokerages have also weighed in on HOOD. Keefe, Bruyette & Woods cut their price target on shares of Robinhood Markets from $75.00 to $65.00 and set a "market perform" rating on the stock in a research note on Wednesday, April 29th. JPMorgan Chase & Co. cut their price target on shares of Robinhood Markets from $113.00 to $92.00 and set a "neutral" rating on the stock in a research note on Thursday, April 23rd. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $110.00 price target on shares of Robinhood Markets in a research note on Tuesday. Citizens Jmp reaffirmed a "market outperform" rating and issued a $155.00 price target on shares of Robinhood Markets in a research note on Thursday, May 28th. Finally, Jefferies Financial Group lowered their price objective on shares of Robinhood Markets from $88.00 to $84.00 and set a "buy" rating on the stock in a report on Monday, April 6th. Eighteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Robinhood Markets has an average rating of "Moderate Buy" and a consensus target price of $110.73.

Insider Buying and Selling at Robinhood Markets

In related news, CEO Vladimir Tenev sold 375,000 shares of the business's stock in a transaction 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 transaction, the chief executive officer directly owned 375,000 shares in the company, valued at approximately $26,186,250. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Baiju Bhatt sold 67,422 shares of the business's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $75.38, for a total transaction of $5,082,270.36. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders acquired 680,000 shares of company stock valued at $55,306,560 and sold 571,602 shares valued at $41,959,746. Corporate insiders own 14.47% of the company's stock.

Key Robinhood Markets News

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

• Positive Sentiment: Robinhood’s approval to act as an IPO underwriter expands its business model and could deepen customer engagement by offering bigger IPO allocations and more fee opportunities.
• Positive Sentiment: Robinhood reported “record-breaking” platform traffic after SpaceX’s debut, suggesting strong retail demand and potentially higher trading volume on the platform. Article Title
• Positive Sentiment: Unusual options activity leaned bullish, with traders buying a large amount of call options, signaling expectations for continued upside in HOOD.
• Neutral Sentiment: Analysts and market commentary continue to frame Robinhood as a major beneficiary of rising retail interest in IPOs, though the near-term earnings impact from underwriting alone may be limited.
• Negative Sentiment: ARK Invest reportedly sold shares of Robinhood this week, which may temper enthusiasm at the margin even as other catalysts remain stronger.

Hedge Funds Weigh In On Robinhood Markets

Several institutional investors and hedge funds have recently modified their holdings of HOOD. Sound Income Strategies LLC increased its holdings in shares of Robinhood Markets by 152.6% in the fourth quarter. Sound Income Strategies LLC now owns 240 shares of the company's stock valued at $26,000 after purchasing an additional 145 shares during the last quarter. CYBER HORNET ETFs LLC increased its holdings in shares of 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 last quarter. Elyxium Wealth LLC acquired a new position in shares of Robinhood Markets in the fourth quarter valued at $27,000. MV Capital Management Inc. acquired a new position in shares of Robinhood Markets in the fourth quarter valued at $27,000. Finally, Swiss RE Ltd. acquired a new position in shares of Robinhood Markets in the fourth quarter valued at $27,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

Robinhood Markets Stock Up 1.0%

The stock has a market capitalization of $83.92 billion, a price-to-earnings ratio of 45.02, a P/E/G ratio of 2.16 and a beta of 2.35. The company's fifty day simple moving average is $79.63 and its 200 day simple moving average is $92.17.

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

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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