Stock Traders Buy High Volume of Robinhood Markets Call Options (NASDAQ:HOOD)

Key Points

• Robinhood Markets saw unusually heavy options activity, with investors buying 377,327 call options on Thursday, about 31% above its average daily call volume.
• The stock jumped 9.6% to $83.53 during trading, even as the company’s latest earnings missed estimates slightly with EPS of $0.38 versus $0.39 expected.
• Analysts remain broadly constructive on HOOD, with Citizens JMP reiterating a market outperform rating and setting a $155 price target, while consensus coverage remains at “Moderate Buy.”

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) saw unusually large options trading on Thursday. Investors purchased 377,327 call options on the stock. This represents an increase of 31% compared to the average daily volume of 288,277 call options.

Robinhood Markets Trading Up 9.6%

NASDAQ:HOOD traded up $7.30 during mid-day trading on Thursday, hitting $83.53. 26,957,757 shares of the company's stock were exchanged, compared to its average volume of 29,205,838. Robinhood Markets has a fifty-two week low of $62.92 and a fifty-two week high of $153.86. The firm has a market capitalization of $75.22 billion, a P/E ratio of 40.21, a PEG ratio of 2.25 and a beta of 2.29. The company has a 50 day simple moving average of $76.09 and a 200-day simple moving average of $94.83.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its quarterly 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). Robinhood Markets had a return on equity of 21.39% and a net margin of 41.12%.The firm had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.14 billion. During the same quarter last year, the firm posted $0.37 EPS. The firm's revenue for the quarter was up 15.1% on a year-over-year basis. As a group, analysts expect that Robinhood Markets will post 1.88 earnings per share for the current year.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: Robinhood launched “agentic AI” features that let customers connect AI agents to trading and spending accounts, allowing software to place stock trades and make credit-card purchases on their behalf. Investors appear to be betting this could boost engagement, improve platform stickiness, and give HOOD a first-mover advantage in AI-enabled retail finance. Article Title
• Positive Sentiment: Citizens JMP reaffirmed its market outperform rating and set a $155 price target, signaling confidence that Robinhood has meaningful upside from current levels. Article Title
• Positive Sentiment: Several market updates highlighted that HOOD was already gaining momentum after earnings, with coverage pointing to continued investor enthusiasm around product expansion and growth expectations. Article Title
• Neutral Sentiment: Robinhood also drew attention for launching an AI-assisted trading feature with safeguards and separate account controls; while the rollout is innovative, some coverage emphasized that the product is still early and its revenue impact is not yet clear.
• Negative Sentiment: News coverage also flagged risks around AI trading, including potential errors, fraud, and regulatory scrutiny, which could weigh on sentiment if problems emerge.

Analysts Set New Price Targets

A number of analysts recently issued reports on HOOD shares. Weiss Ratings reissued a "hold (c)" rating on shares of Robinhood Markets in a research note on Friday, March 27th. Mizuho boosted their price objective on shares of Robinhood Markets from $105.00 to $115.00 and gave the stock an "outperform" rating in a research note on Monday, April 20th. Truist Financial dropped their price objective on Robinhood Markets from $120.00 to $100.00 and set a "buy" rating on the stock in a research note on Monday, April 13th. Loop Capital set a $94.00 target price on Robinhood Markets in a research note on Wednesday. Finally, New Street Research set a $122.00 price target on Robinhood Markets in a research note on Thursday, March 5th. Nineteen research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $106.38.

Insider Transactions at Robinhood Markets

In related news, Director Baiju Bhatt sold 67,422 shares of the business's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $75.38, for a total value of $5,082,270.36. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Tenev sold 375,000 shares of Robinhood Markets stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $69.83, for a total value of $26,186,250.00. Following the completion of the sale, the chief executive officer directly owned 375,000 shares in the company, valued at $26,186,250. This represents a 50.00% 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 90 days, insiders have sold 560,765 shares of company stock valued at $40,946,840. 14.47% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Robinhood Markets

Several hedge funds and other institutional investors have recently modified their holdings of HOOD. Golden State Wealth Management LLC raised its stake in shares of Robinhood Markets by 107.6% in the third quarter. Golden State Wealth Management LLC now owns 191 shares of the company's stock worth $27,000 after purchasing an additional 99 shares during the last quarter. Vision Financial Markets LLC grew its holdings in Robinhood Markets by 100.0% during the third quarter. Vision Financial Markets LLC now owns 200 shares of the company's stock worth $29,000 after buying an additional 100 shares in the last quarter. Stonehage Fleming Financial Services Holdings Ltd purchased a new stake in Robinhood Markets in the 3rd quarter valued at $29,000. Guerra Advisors Inc purchased a new stake in Robinhood Markets in the 3rd quarter valued at $30,000. Finally, CYBER HORNET ETFs LLC lifted its stake in Robinhood Markets by 527.8% during the 4th quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company's stock valued at $26,000 after acquiring an additional 190 shares in the last quarter. 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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