Robinhood Markets (NASDAQ:HOOD) Stock Gets Downgrade from Zacks Research

Robinhood Markets (NASDAQ:HOOD) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Monday, Zacks reports.

Other analysts have also issued research reports about the company. Morgan Stanley increased their price objective on Robinhood Markets from $150.00 to $160.00 and gave the company an “overweight” rating in a research note on Friday, October 9th. UBS Group reissued a “buy” rating on shares of Robinhood Markets in a research note on Friday. Jefferies Financial Group upped their target price on shares of Robinhood Markets from $127.00 to $140.00 and gave the company a “buy” rating in a report on Tuesday, September 8th. Deutsche Bank Aktiengesellschaft lowered their price target on shares of Robinhood Markets from $138.00 to $134.00 and set a “buy” rating for the company in a report on Tuesday, September 29th. Finally, Evercore initiated coverage on shares of Robinhood Markets in a research report on Monday, October 12th. They issued an “outperform” rating and a $130.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Robinhood Markets presently has an average rating of “Moderate Buy” and a consensus target price of $126.45.

Robinhood Markets Stock Performance

NASDAQ:HOOD opened at $85.68 on Monday. The firm has a 50-day moving average price of $107.65 and a two-hundred day moving average price of $92.69. The company has a market capitalization of $77.03 billion, a P/E ratio of 39.48, a price-to-earnings-growth ratio of 1.82 and a beta of 2.56. Robinhood Markets has a twelve month low of $63.51 and a twelve month high of $144.77. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.26.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings data on Wednesday, October 28th. The company reported $0.60 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.04. Robinhood Markets had a net margin of 39.04% and a return on equity of 21.49%. The business had revenue of $1.42 billion during the quarter, compared to analysts’ expectations of $1.44 billion. During the same period last year, the company posted $0.61 EPS. The company’s revenue was up 11.5% on a year-over-year basis. As a group, research analysts expect that Robinhood Markets will post 2.11 earnings per share for the current fiscal year.

Insider Activity at Robinhood Markets

In related news, CFO Shiv Verma sold 11,472 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $110.42, for a total value of $1,266,738.24. Following the completion of the sale, the chief financial officer directly owned 56,858 shares in the company, valued at approximately $6,278,260.36. The trade was a 16.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Tenev sold 375,000 shares of the business’s stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $113.72, for a total transaction of $42,645,000.00. Following the completion of the sale, the chief executive officer owned 375,000 shares of the company’s stock, valued at approximately $42,645,000. The trade was a 50.00% decrease in their ownership of the stock. 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 have sold 1,081,347 shares of company stock worth $127,543,680. Corporate insiders own 13.48% of the company’s stock.

Hedge Funds Weigh In On Robinhood Markets

A number of hedge funds have recently made changes to their positions in HOOD. C M Bidwell & Associates Ltd. purchased a new position in shares of Robinhood Markets in the 2nd quarter worth $27,000. James T. Borello RIA purchased a new stake in Robinhood Markets during the third quarter valued at about $29,000. Cassaday & Co Wealth Management LLC acquired a new stake in Robinhood Markets during the first quarter worth about $33,000. Glen Eagle Advisors LLC increased its stake in Robinhood Markets by 100.7% during the first quarter. Glen Eagle Advisors LLC now owns 568 shares of the company’s stock worth $39,000 after acquiring an additional 285 shares during the last quarter. Finally, Continuum Advisory LLC purchased a new position in shares of Robinhood Markets in the 2nd quarter worth about $40,000. Institutional investors and hedge funds own 93.27% of the company’s stock.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: A $6.3 billion Binance hack may steer some crypto investors toward regulated platforms. Goldman Sachs said that a flight to safety could benefit Robinhood, alongside Coinbase and BitGo. Goldman Sachs names stock winners and losers after $6.3 bln Binance heist
• Positive Sentiment: Tokenized stocks from Robinhood and other platforms have attracted $130.5 million in DeFi deposits, an encouraging sign of adoption for this emerging business area. Tokenized stocks from Robinhood, Binance, and Coinbase attract $130.5M in DeFi deposits
• Neutral Sentiment: Robinhood is competing for a larger retail allocation in Anthropic’s anticipated IPO. Access could attract customers and trading activity, but the CFO described the brokerage scramble for shares as a “food fight,” underscoring uncertainty about allocations. Robinhood in a “Food Fight” for Anthropic IPO Shares as Crypto Trading Cools
• Negative Sentiment: An analyst downgrade added pressure on the shares. Robinhood Markets Stock Falls 1.4% on Analyst Downgrade
• Negative Sentiment: Crypto revenue fell 55% in the third quarter, while overall revenue growth slowed to 12%. The cooling crypto business raises concerns about near-term growth, even as Robinhood expands into other products. Robinhood in a “Food Fight” for Anthropic IPO Shares as Crypto Trading Cools

Robinhood Markets Company Profile

Robinhood Markets, Inc is a financial services company that operates a digital brokerage platform. Founded in 2013 by Vlad Tenev and Baiju Bhatt, the company became known for offering commission-free trading and a mobile-first investing experience designed to broaden access to financial markets.

Through its platform, Robinhood provides brokerage services for stocks, exchange-traded funds, options and other investments. Its offerings also include cryptocurrency trading, individual retirement accounts, margin investing, cash management services and Robinhood Gold, a subscription-based product that provides additional features and benefits.