Robinhood Markets (NASDAQ:HOOD) Upgraded by Wall Street Zen to Sell Rating

Key Points

• Wall Street Zen upgraded Robinhood Markets from “strong sell” to “sell”, but the broader analyst picture remains more constructive overall. The stock still has an average Moderate Buy rating with a consensus target price of $110.73.
• Robinhood recently reported mixed quarterly results, with EPS of $0.38 coming in slightly below expectations and revenue of $1.07 billion missing estimates. Still, revenue rose 15.1% year over year, and analysts expect $1.83 EPS for the full fiscal year.
• Recent news highlighted both growth catalysts and operational risks: Robinhood won approval to underwrite IPOs and saw record traffic tied to SpaceX’s debut, but users also reported trading issues during the surge. Insider activity was mixed as well, with one executive selling shares while a director made a large purchase.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "strong sell" rating to a "sell" rating in a report released on Saturday.

A number of other research analysts have also recently commented on HOOD. Loop Capital set a $94.00 price target on shares of Robinhood Markets in a report on Wednesday, May 27th. 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. Sanford C. Bernstein restated an "outperform" rating and issued a $130.00 price target on shares of Robinhood Markets in a report on Tuesday, April 14th. New Street Research set a $122.00 price target on shares of Robinhood Markets in a report on Thursday, March 5th. Finally, The Goldman Sachs Group upped their price target on shares of Robinhood Markets from $95.00 to $105.00 and gave the stock a "buy" rating in a report on Thursday, June 4th. Eighteen analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $110.73.

Robinhood Markets Stock Performance

HOOD opened at $93.19 on Friday. The stock has a market cap of $83.92 billion, a price-to-earnings ratio of 45.02, a P/E/G ratio of 2.31 and a beta of 2.35. The stock's 50 day moving average price is $80.09 and its 200-day moving average price is $92.18. Robinhood Markets has a one year low of $63.51 and a one year high of $153.86.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released its earnings results on Tuesday, April 28th. The company reported $0.38 EPS for the quarter, missing analysts' consensus estimates of $0.39 by ($0.01). The business had revenue of $1.07 billion for 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 quarterly revenue was up 15.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.37 EPS. As a group, analysts predict that Robinhood Markets will post 1.83 earnings per share for the current fiscal year.

Insider Activity at Robinhood Markets

In other Robinhood Markets news, insider Steven M. Quirk sold 10,837 shares of the stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $85.91, for a total transaction of $931,006.67. Following the transaction, the insider directly owned 81,989 shares in the company, valued at $7,043,674.99. This represents a 11.67% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Meyer Malka bought 250,000 shares of the company's stock in a transaction on Friday, June 5th. The shares were acquired at an average price of $80.74 per share, for a total transaction of $20,185,000.00. Following the completion of the acquisition, the director owned 3,924,427 shares in the company, valued at $316,858,235.98. This represents a 6.80% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders purchased 680,000 shares of company stock worth $55,306,560 and sold 571,602 shares worth $41,959,746. Insiders own 14.47% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Sound Income Strategies LLC grew its holdings in Robinhood Markets by 152.6% during the 4th quarter. Sound Income Strategies LLC now owns 240 shares of the company's stock worth $26,000 after acquiring an additional 145 shares in the last quarter. CYBER HORNET ETFs LLC lifted its position in shares of Robinhood Markets by 527.8% during the fourth quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company's stock valued at $26,000 after buying an additional 190 shares during the last quarter. Elyxium Wealth LLC purchased a new stake in shares of Robinhood Markets during the fourth quarter valued at about $27,000. MV Capital Management Inc. purchased a new stake in shares of Robinhood Markets during the fourth quarter valued at about $27,000. Finally, Swiss RE Ltd. purchased a new stake in shares of Robinhood Markets during the fourth quarter valued at about $27,000. 93.27% of the stock is currently owned by institutional investors.

Key Headlines Impacting Robinhood Markets

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

• Positive Sentiment: Robinhood’s securities arm received approval to underwrite IPOs, potentially expanding revenue opportunities and giving the company a bigger role in future public offerings. Robinhood Just Won Approval to Underwrite IPOs, Right Before SpaceX's Blockbuster Market Debut. Here's Why the Timing Matters.
• Positive Sentiment: SpaceX’s IPO sparked “record-breaking” traffic on Robinhood’s platform, highlighting heavy retail engagement and the value of its IPO-access business. Robinhood sees ‘record-breaking' traffic after SpaceX stock debuts
• Positive Sentiment: Needham raised its price target on Robinhood to $97 and reiterated a buy rating, adding to bullish sentiment around the stock. Benzinga report on Needham price target raise
• Neutral Sentiment: Robinhood saw unusual options activity, with traders buying a much larger-than-normal volume of call options, suggesting heightened speculation around the shares.
• Neutral Sentiment: The stock also benefited from a broader lift in financial stocks and related retail brokerage names during Friday’s session. Sector Update: Financial Stocks Advance Late Afternoon
• Negative Sentiment: Robinhood’s platform experienced trading issues amid the surge in SpaceX-related demand, which could raise concerns about reliability during peak activity. HOOD Stock: Robinhood Buckles Under SpaceX IPO Demand, Users Report Trading Issues
• Negative Sentiment: ARK Invest reportedly sold shares of Robinhood, which may temper enthusiasm for some investors. HOOD Stock Gains Overnight: Cathie Wood’s ARK Sells Shares Even As Robinhood Stacks Up Fresh Catalysts

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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