BTIG Research Initiates Coverage on Robinhood Markets (NASDAQ:HOOD)

Equities research analysts at BTIG Research started coverage on shares of Robinhood Markets (NASDAQ:HOOD) in a research note issued to investors on Friday,Benzinga reports. The brokerage set a “buy” rating and a $125.00 price target on the stock. BTIG Research’s target price points to a potential upside of 33.73% from the stock’s current price.

Several other equities analysts have also commented on the stock. KeyCorp restated an “overweight” rating and issued a $100.00 price objective on shares of Robinhood Markets in a report on Monday, June 1st. Loop Capital set a $110.00 target price on Robinhood Markets in a research report on Wednesday, June 17th. New Street Research set a $122.00 price target on Robinhood Markets in a research note on Thursday, March 5th. Needham & Company LLC raised their price target on Robinhood Markets from $85.00 to $97.00 and gave the stock a “buy” rating in a research report on Thursday, June 11th. Finally, The Goldman Sachs Group raised their price target on Robinhood Markets from $95.00 to $105.00 and gave the stock a “buy” rating in a research report on Thursday, June 4th. Nineteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $112.91.

Robinhood Markets Trading Down 3.8%

Shares of NASDAQ:HOOD opened at $93.47 on Friday. The company has a market capitalization of $84.17 billion, a price-to-earnings ratio of 45.15, a PEG ratio of 1.79 and a beta of 2.35. Robinhood Markets has a 12-month low of $63.51 and a 12-month high of $153.86. The business has a 50-day moving average price of $85.63 and a 200 day moving average price of $90.35.

Robinhood Markets (NASDAQ:HOOD) last posted 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 company had revenue of $1.07 billion during the quarter, compared to analyst estimates 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 previous year, the company earned $0.37 EPS. As a group, equities research analysts predict that Robinhood Markets will post 1.8 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of Robinhood Markets stock in a transaction on Monday, May 4th. The stock was sold at an average price of $76.89, for a total value of $768,900.00. Following the completion of the transaction, the insider directly owned 432,849 shares in the company, valued at approximately $33,281,759.61. This trade represents a 2.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Meyer Malka bought 250,000 shares of the stock in a transaction that occurred on Friday, June 5th. The shares were bought at an average cost of $80.74 per share, with a total value of $20,185,000.00. Following the completion of the purchase, the director directly 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. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders have bought 680,000 shares of company stock worth $55,306,560 and have sold 633,484 shares worth $47,542,923. 14.47% of the stock is currently owned by corporate insiders.

Institutional Trading of Robinhood Markets

Several hedge funds have recently added to or reduced their stakes in the company. Truist Financial Corp raised its holdings in shares of Robinhood Markets by 88.9% in the fourth quarter. Truist Financial Corp now owns 145,489 shares of the company’s stock worth $16,455,000 after acquiring an additional 68,458 shares during the last quarter. PNC Financial Services Group Inc. boosted its stake in shares of Robinhood Markets by 86.2% during the fourth quarter. PNC Financial Services Group Inc. now owns 100,849 shares of the company’s stock valued at $11,406,000 after acquiring an additional 46,688 shares during the last quarter. Wealth Enhancement Advisory Services LLC boosted its stake in shares of Robinhood Markets by 26.3% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 365,551 shares of the company’s stock valued at $44,477,000 after acquiring an additional 76,075 shares during the last quarter. Capital Wealth Planning LLC increased its position in Robinhood Markets by 238.5% during the 3rd quarter. Capital Wealth Planning LLC now owns 48,438 shares of the company’s stock worth $6,935,000 after purchasing an additional 34,129 shares in the last quarter. Finally, Nomura Asset Management Co. Ltd. increased its position in Robinhood Markets by 196.3% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 722,857 shares of the company’s stock worth $81,755,000 after purchasing an additional 478,919 shares in the last quarter. Institutional investors and hedge funds own 93.27% of the company’s stock.

Robinhood Markets News Roundup

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

• Positive Sentiment: Robinhood closed a $2.2 billion offering of 0.00% convertible senior notes due 2029, giving the company substantial capital to invest in growth initiatives and strategic flexibility. The deal also included capped calls and a share repurchase component designed to reduce future dilution risk. Article: Robinhood Closes Offering of $2.2 Billion of 0.00% Convertible Senior Notes Due 2029
• Neutral Sentiment: Robinhood is using part of the proceeds to repurchase stock and buy capped calls, with management saying the transaction should limit dilution unless the shares rise substantially above current levels. Investors may view this as financially prudent, but it does not directly improve near-term operating results. Article: Robinhood Markets, Inc.: Robinhood Closes Offering of $2.2 Billion of 0.00% Convertible Senior Notes Due 2029
• Negative Sentiment: Shares were pressured after reports that Meta Platforms is developing a competing prediction markets app, raising worries that Robinhood could face tougher competition in one of its newer growth areas. Article: Why Robinhood (HOOD) Stock Is Down Today
• Negative Sentiment: The stock has also been volatile following a recent drop tied to broader investor caution, with some commentary suggesting the platform’s growth drivers remain highly sensitive to market conditions and sentiment. Article: Robinhood Stock Has Soared 65% From Its 52-Week Low. Here’s Why I’m Predicting Another Sell-Off.

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.