Robinhood Markets (NASDAQ:HOOD) Trading Up 1.1% - Time to Buy?

Key Points

• Q1 results missed: revenue of $1.07 billion and EPS of $0.38 fell short of estimates, driven by a plunge in crypto revenue, and an ~18% rise in operating expenses could pressure near‑term margins.
• Core user trends improved—funded customers, net deposits and record Robinhood Gold subscriptions grew—and management said prediction‑market fees overtook crypto, while in‑principle regulatory approval in Singapore could expand the company’s TAM if converted to live revenues.
• Analysts are mixed but cautious: consensus is a Moderate Buy with an average target of $107.88 amid several cuts, and insider sales under 10b5‑1 plans plus high institutional ownership (~93%) add both support and short‑term uncertainty.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) was up 1.1% on Friday . The stock traded as high as $75.28 and last traded at $73.66. Approximately 25,071,859 shares traded hands during mid-day trading, a decline of 19% from the average daily volume of 30,833,430 shares. The stock had previously closed at $72.89.

Key Stories Impacting Robinhood Markets

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

• Positive Sentiment: Core user and deposit trends look healthy: funded customers, net deposits and record Robinhood Gold subscriptions grew in Q1 and prediction-market activity contributed fee revenue, supporting a longer-term recurring‑revenue story. Q1 Earnings Call Summary
• Positive Sentiment: Prediction markets momentum: management said prediction-market fees overtook crypto in the quarter, which can diversify revenue away from volatile crypto swings. Earnings Video
• Positive Sentiment: International expansion progress — in‑principle regulatory approval in Singapore supports TAM expansion outside the U.S. if it converts to live revenues. Singapore Article
• Neutral Sentiment: Executive insider selling was disclosed (CTO sold shares under a pre‑arranged 10b5‑1 plan); procedural but watched by investors. SEC Form 4
• Neutral Sentiment: Some brokers still bullish even as targets shift — Cantor Fitzgerald reaffirmed an Overweight rating while Argus trimmed its price target but kept a Buy, leaving the sell‑side split on near‑term valuation. Cantor Fitzgerald Article Argus/Ticker Report
• Negative Sentiment: Q1 misses: revenue (~$1.07B) and EPS (reported $0.38) came in below consensus, triggering a sharp share pullback as investors re‑price near‑term growth and margin assumptions. Earnings Call Summary
• Negative Sentiment: Crypto revenue plunge was the primary driver of the top‑line shortfall, highlighting ongoing sensitivity to crypto market volatility. Investopedia Crypto Article
• Negative Sentiment: Higher operating expenses and a disclosed ~18% expense increase (including a ~$100M initiative) could pressure near‑term margins even as the company invests in growth. Yahoo Finance: Expenses
• Negative Sentiment: Growing analyst pessimism and target cuts (Barclays, Needham and others lowering targets or tone) amplify downside risk until revenue mix and margin trends stabilize. Barclays Reset Needham Note
• Negative Sentiment: New report flags a government-related deal that has turned sour, which could dent expected revenue or partnerships if material. AOL Article

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on HOOD shares. Piper Sandler dropped their target price on Robinhood Markets from $155.00 to $135.00 and set an "overweight" rating for the company in a research report on Wednesday, February 11th. Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $130.00 target price on shares of Robinhood Markets in a research report on Tuesday, April 14th. Wolfe Research raised Robinhood Markets from a "peer perform" rating to an "outperform" rating and set a $125.00 target price for the company in a research report on Monday, February 9th. Truist Financial dropped their target price 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. Finally, Loop Capital set a $130.00 target price on Robinhood Markets in a research report on Monday, February 9th. Eighteen equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $107.88.

Robinhood Markets Trading Up 1.1%

The firm has a 50 day moving average price of $76.22 and a 200-day moving average price of $102.62. The firm has a market cap of $66.32 billion, a PE ratio of 35.58, a PEG ratio of 2.15 and a beta of 2.46.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last announced 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 company had revenue of $1.07 billion during the quarter, compared to analysts' expectations of $1.14 billion. Robinhood Markets had a net margin of 41.12% and a return on equity of 21.39%. The business's quarterly revenue was up 15.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.37 EPS. Equities analysts forecast that Robinhood Markets, Inc. will post 1.94 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CTO Jeffrey Tsvi Pinner sold 5,835 shares of the business's stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $83.92, for a total transaction of $489,673.20. Following the completion of the sale, the chief technology officer owned 12,171 shares in the company, valued at $1,021,390.32. The trade was a 32.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the business's stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $75.49, for a total value of $754,900.00. Following the sale, the insider owned 452,849 shares of the company's stock, valued at approximately $34,185,571.01. The trade was a 2.16% 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. In the last ninety days, insiders have sold 540,447 shares of company stock worth $40,159,378. Corporate insiders own 14.47% of the company's stock.

Institutional Investors Weigh In On Robinhood Markets

Several institutional investors have recently added to or reduced their stakes in HOOD. Vanguard Group Inc. lifted its stake in 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 purchasing an additional 18,824,923 shares during the last quarter. State Street Corp lifted its stake in 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 purchasing an additional 16,375,734 shares during the last quarter. Norges Bank purchased a new stake in Robinhood Markets during the fourth quarter worth approximately $1,202,160,000. Corient Private Wealth LLC lifted its stake in 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 purchasing an additional 2,511,743 shares during the last quarter. Finally, Jennison Associates LLC purchased a new stake in Robinhood Markets during the third quarter worth approximately $322,823,000. Hedge funds and other institutional investors own 93.27% of the company's stock.

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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