Robinhood Markets (NASDAQ:HOOD) Trading Up 8.8% on Analyst Upgrade

Key Points

• Robinhood shares jumped 8.8% after Argus raised its price target to $110 from $90 and maintained a buy rating. The stock traded as high as $110.73 on heavy volume, far above its prior close of $96.71.
• Wall Street sentiment remains broadly positive, with several firms recently reaffirming bullish views and the consensus rating sitting at Moderate Buy. MarketBeat data shows 18 analysts rate Robinhood a Buy, with a consensus target price of $112.36.
• Insider activity was mixed: director Meyer Malka bought 250,000 shares, while insider Steven M. Quirk sold shares under a pre-arranged trading plan. Institutional ownership remains very high at 93.27%.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s stock price was up 8.8% on Wednesday after Argus raised their price target on the stock from $90.00 to $110.00. Argus currently has a buy rating on the stock. Robinhood Markets traded as high as $110.73 and last traded at $105.20. Approximately 69,938,292 shares changed hands during mid-day trading, an increase of 130% from the average daily volume of 30,389,297 shares. The stock had previously closed at $96.71.

A number of other analysts have also recently weighed in on HOOD. Citizens Jmp restated a "market outperform" rating and issued a $155.00 price target on shares of Robinhood Markets in a report on Thursday, May 28th. KeyCorp restated an "overweight" rating and issued a $100.00 price target on shares of Robinhood Markets in a report on Monday, June 1st. JPMorgan Chase & Co. lowered their price target on shares of Robinhood Markets from $113.00 to $92.00 and set a "neutral" rating on the stock in a report on Thursday, April 23rd. Barclays lowered their price target on shares of Robinhood Markets from $89.00 to $82.00 and set an "overweight" rating on the stock in a report on Wednesday, April 29th. Finally, The Goldman Sachs Group raised their price target on shares of Robinhood Markets from $95.00 to $105.00 and gave the company a "buy" rating in a report on Thursday, June 4th. Eighteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $112.36.

Insider Transactions at Robinhood Markets

In other news, Director Meyer Malka bought 250,000 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The stock was purchased at an average cost of $80.74 per share, for a total transaction of $20,185,000.00. Following the purchase, the director directly owned 3,924,427 shares in the company, valued at approximately $316,858,235.98. This trade represents a 6.80% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Steven M. Quirk sold 10,837 shares of the business's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $85.91, for a total transaction of $931,006.67. Following the completion of the sale, the insider directly owned 81,989 shares of the company's stock, valued at approximately $7,043,674.99. The trade was a 11.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders acquired 680,000 shares of company stock worth $55,306,560 and sold 633,484 shares worth $47,542,923. 19.95% of the stock is currently owned by company insiders.

Key Stories Impacting Robinhood Markets

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

• Positive Sentiment: Multiple Wall Street firms reiterated a bullish view on Robinhood, and Argus raised its price target to $110 from $90 while keeping a buy rating, reinforcing confidence that the company’s growth story remains intact. Robinhood stock gains as analysts back growth despite layoffs
• Positive Sentiment: Robinhood said it is cutting about 10% of its workforce to stay lean and speed up product launches, with the move framed as an efficiency initiative while trading activity remains at record levels. Robinhood Trims Workforce to Stay Agile Amid Record Trading Activities
• Positive Sentiment: The stock is also benefiting from reports of record trading volumes, which support the case for stronger near-term revenue and operating leverage. Robinhood Soars 12%, Webull Jumps 8% as a Workforce Cut Meets Record Trading Volumes
• Neutral Sentiment: Robinhood CEO Vlad Tenev continued to promote a long-term growth narrative around broader market participation and wealth creation, but this appears more like a strategic message than a direct near-term catalyst. Robinhood CEO Vlad Tenev Has A Plan To Build Wealth: 'Make Everyone An Owner'
• Negative Sentiment: Recent insider sales by CFO Shiv Verma and director Baiju Bhatt may create some caution, even though both transactions were made under pre-arranged trading plans. SEC filing for Shiv Verma sale SEC filing for Baiju Bhatt sale

Institutional Investors Weigh In On Robinhood Markets

A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. raised its holdings in Robinhood Markets by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 95,771,497 shares of the company's stock valued at $10,831,756,000 after buying an additional 1,334,443 shares during the period. State Street Corp boosted its stake in shares of Robinhood Markets by 2.7% in the fourth quarter. State Street Corp now owns 33,121,452 shares of the company's stock valued at $3,746,036,000 after purchasing an additional 875,297 shares during the period. Geode Capital Management LLC boosted its stake in shares of Robinhood Markets by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 21,171,925 shares of the company's stock valued at $2,386,944,000 after purchasing an additional 356,902 shares during the period. Morgan Stanley boosted its stake in shares of Robinhood Markets by 23.9% in the fourth quarter. Morgan Stanley now owns 10,683,776 shares of the company's stock valued at $1,208,335,000 after purchasing an additional 2,061,832 shares during the period. Finally, Norges Bank purchased a new position in shares of Robinhood Markets in the fourth quarter valued at approximately $1,202,160,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

Robinhood Markets Price Performance

The company's 50 day moving average price is $81.23 and its 200 day moving average price is $91.67. The firm has a market cap of $94.73 billion, a PE ratio of 50.82, a price-to-earnings-growth ratio of 2.45 and a beta of 2.35.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The company reported $0.38 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.01). The business 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 company'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. Sell-side analysts expect that Robinhood Markets, Inc. will post 1.83 earnings per share for the current fiscal 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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