Robinhood Markets (NASDAQ:HOOD) Rating Increased to Strong-Buy at Benchmark

Benchmark upgraded shares of Robinhood Markets (NASDAQ:HOOD) to a strong-buy rating in a report released on Wednesday,Zacks reports.

Several other equities research analysts also recently commented on HOOD. The Goldman Sachs Group upped their price objective on shares of Robinhood Markets from $124.00 to $142.00 and gave the company a “buy” rating in a report on Tuesday. Needham & Company LLC reduced their target price on shares of Robinhood Markets from $123.00 to $120.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. KeyCorp upped their price target on shares of Robinhood Markets from $100.00 to $125.00 and gave the company an “overweight” rating in a research note on Wednesday, July 22nd. Piper Sandler reaffirmed an “overweight” rating and issued a $145.00 price objective (up from $135.00) on shares of Robinhood Markets in a report on Wednesday, September 2nd. Finally, Wall Street Zen upgraded shares of Robinhood Markets from a “strong sell” rating to a “sell” rating in a research note on Sunday, July 12th. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $129.83.

Robinhood Markets Stock Performance

NASDAQ:HOOD opened at $112.57 on Wednesday. The company has a market capitalization of $101.21 billion, a P/E ratio of 49.59, a P/E/G ratio of 2.31 and a beta of 2.34. The business has a fifty day simple moving average of $103.62 and a two-hundred day simple moving average of $89.67. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.22 and a quick ratio of 1.22. Robinhood Markets has a 1 year low of $63.51 and a 1 year high of $153.86.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.62 EPS for the quarter, beating analysts’ consensus estimates of $0.44 by $0.18. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%.The firm had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.29 billion. During the same quarter in the prior year, the firm earned $0.42 EPS. The business’s revenue for the quarter was up 32.5% compared to the same quarter last year. On average, analysts expect that Robinhood Markets will post 2.11 earnings per share for the current year.

Insider Activity

In other news, Director Baiju Bhatt sold 50,317 shares of the stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $96.80, for a total value of $4,870,685.60. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Shiv Verma sold 3,982 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $95.07, for a total transaction of $378,568.74. Following the completion of the transaction, the chief financial officer owned 51,963 shares of the company’s stock, valued at $4,940,122.41. This trade represents a 7.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 570,260 shares of company stock valued at $64,115,060. 13.48% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Parkside Financial Bank & Trust boosted its stake in Robinhood Markets by 11.9% during the second quarter. Parkside Financial Bank & Trust now owns 1,089 shares of the company’s stock valued at $109,000 after buying an additional 116 shares during the period. Sivia Capital Partners LLC raised its holdings in shares of Robinhood Markets by 2.8% in the 4th quarter. Sivia Capital Partners LLC now owns 4,310 shares of the company’s stock valued at $487,000 after acquiring an additional 117 shares in the last quarter. Constant Guidance Financial LLC boosted its position in shares of Robinhood Markets by 5.3% during the 4th quarter. Constant Guidance Financial LLC now owns 2,571 shares of the company’s stock valued at $291,000 after acquiring an additional 129 shares during the last quarter. MCF Advisors LLC grew its holdings in shares of Robinhood Markets by 52.6% during the fourth quarter. MCF Advisors LLC now owns 377 shares of the company’s stock worth $43,000 after purchasing an additional 130 shares in the last quarter. Finally, RFG Advisory LLC grew its holdings in shares of Robinhood Markets by 4.0% during the second quarter. RFG Advisory LLC now owns 3,505 shares of the company’s stock worth $351,000 after purchasing an additional 135 shares in the last quarter. Institutional investors own 93.27% of the company’s stock.

Robinhood Markets News Summary

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

• Positive Sentiment: Strong August activity and event-contract growth: Robinhood reported 28.6 million customers and broadly positive August operating metrics. Separately, event-contract activity reportedly increased 15-fold year over year, supporting the company’s diversification beyond traditional brokerage revenue. Robinhood August operating data Robinhood event contracts growth
• Positive Sentiment: New revenue opportunities: Citizens JMP raised its price target to $165 from $155 and maintained a Market Outperform rating. Citizens also projected Robinhood Chain could generate $365 million in revenue by 2027. Robinhood’s underwriting role in the Oura IPO could provide investment-banking fee revenue and create opportunities to participate in larger IPOs. Citizens Robinhood Chain projection Robinhood investment banking ambitions
• Neutral Sentiment: Expansion through partnerships: Robinhood is expanding prediction-market access through arrangements involving Crypto.com and OG.com, although the ultimate financial contribution remains uncertain.
• Negative Sentiment: Regulatory and legal concerns: Robinhood plans to stop offering sports prediction markets in Michigan amid litigation. A broader legal update highlights rapidly changing rules across several states, creating uncertainty around the company’s prediction-market growth strategy. Robinhood Michigan prediction markets lawsuit Prediction markets legal update
• Negative Sentiment: Tokenization faces scrutiny: Objections from securities issuers and unresolved regulatory questions could raise compliance costs and slow Robinhood’s international rollout of tokenized stocks. Robinhood tokenized-stock scrutiny
• Negative Sentiment: Insider sale: Director Oluwadara Treseder sold 1,875 shares for approximately $234,375 under a pre-arranged Rule 10b5-1 plan. The sale was small relative to her remaining stake but may add modest caution.

Robinhood Markets Company Profile

Robinhood Markets, Inc is a financial services company that operates a digital investing and trading platform. Through its mobile app and website, the company provides access to U.S. stocks, exchange-traded funds, options, cryptocurrencies and other investment products. Robinhood also offers individual retirement accounts, margin investing and cash-management services, subject to applicable eligibility requirements and regulations.

The company generates revenue from sources that include interest earned on customer cash and margin balances, transaction-based revenue related to options and cryptocurrency trading, subscription fees for Robinhood Gold and other service-related activities.