Robinhood Markets (NASDAQ:HOOD) Upgraded at Benchmark

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

A number of other research analysts also recently issued reports on the company. Deutsche Bank Aktiengesellschaft boosted their price objective on Robinhood Markets from $105.00 to $113.00 and gave the company a “buy” rating in a research note on Tuesday, June 30th. Argus lifted their target price on Robinhood Markets from $90.00 to $110.00 and gave the stock a “buy” rating in a report on Wednesday, June 17th. BTIG Research reissued a “buy” rating and issued a $125.00 price target on shares of Robinhood Markets in a research note on Thursday, July 30th. Zacks Research upgraded Robinhood Markets from a “hold” rating to a “strong-buy” rating in a report on Thursday, September 3rd. Finally, Scotiabank initiated coverage on shares of Robinhood Markets in a research report on Wednesday, September 2nd. They set a “sector outperform” rating and a $136.00 price objective for the company. Two 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 stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $129.83.

Robinhood Markets Trading Down 0.7%

NASDAQ:HOOD opened at $112.57 on Wednesday. The firm’s fifty day moving average is $103.62 and its 200-day moving average is $89.67. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.22 and a current ratio of 1.22. Robinhood Markets has a 52 week low of $63.51 and a 52 week high of $153.86. The firm has a market cap 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.

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

Insider Transactions at Robinhood Markets

In related news, Director Oluwadara Treseder sold 1,875 shares of the business’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $125.00, for a total transaction of $234,375.00. Following the transaction, the director directly owned 70,567 shares in the company, valued at approximately $8,820,875. The trade was a 2.59% 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 this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Shiv Verma sold 3,982 shares of the company’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $95.07, for a total transaction of $378,568.74. Following the completion of the sale, the chief financial officer directly owned 51,963 shares of the company’s stock, valued at $4,940,122.41. The trade was a 7.12% 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 570,260 shares of company stock worth $64,115,060. 13.48% of the stock is owned by insiders.

Hedge Funds Weigh In On Robinhood Markets

Several institutional investors have recently modified their holdings of HOOD. Parkside Financial Bank & Trust lifted its holdings in Robinhood Markets by 11.9% during the second quarter. Parkside Financial Bank & Trust now owns 1,089 shares of the company’s stock worth $109,000 after acquiring an additional 116 shares during the period. Sivia Capital Partners LLC grew its stake in 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 purchasing an additional 117 shares during the period. Constant Guidance Financial LLC increased 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 purchasing an additional 129 shares during the last quarter. MCF Advisors LLC increased its position in shares of Robinhood Markets by 52.6% during the 4th quarter. MCF Advisors LLC now owns 377 shares of the company’s stock valued at $43,000 after purchasing an additional 130 shares during the last quarter. Finally, RFG Advisory LLC raised its stake in shares of Robinhood Markets by 4.0% during the 2nd quarter. RFG Advisory LLC now owns 3,505 shares of the company’s stock worth $351,000 after purchasing an additional 135 shares during the period. 93.27% of the stock is owned by institutional investors.

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.

About Robinhood Markets

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.