Robinhood Markets, Inc. (NASDAQ:HOOD) Stock Has Consensus Price Target of $130.70

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) have been given an average recommendation of “Moderate Buy” by the twenty-eight brokerages that are currently covering the company, Marketbeat.com reports. Three research analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and two have issued a strong buy rating on the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $130.70.

Several equities analysts have issued reports on the company. Argus boosted their target price on Robinhood Markets from $90.00 to $110.00 and gave the stock a “buy” rating in a research report on Wednesday, June 17th. Scotiabank began coverage on Robinhood Markets in a report on Wednesday, September 2nd. They issued a “sector outperform” rating and a $136.00 price target for the company. Citizens Jmp lifted their price target on Robinhood Markets from $155.00 to $165.00 and gave the company a “market outperform” rating in a research note on Friday, September 11th. Jefferies Financial Group upped their price objective on Robinhood Markets from $127.00 to $140.00 and gave the stock a “buy” rating in a report on Tuesday, September 8th. Finally, Zacks Research raised Robinhood Markets from a “hold” rating to a “strong-buy” rating in a report on Thursday, September 3rd.

Robinhood Markets Stock Down 1.2%

Shares of NASDAQ:HOOD opened at $119.40 on Wednesday. Robinhood Markets has a fifty-two week low of $63.51 and a fifty-two week high of $153.86. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.23. The firm’s 50-day simple moving average is $104.69 and its 200-day simple moving average is $92.44. The company has a market cap of $107.35 billion, a price-to-earnings ratio of 52.60, a PEG ratio of 2.41 and a beta of 2.34.

Robinhood Markets (NASDAQ:HOOD) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.18. The firm had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.29 billion. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. The firm’s revenue for the quarter was up 32.5% on a year-over-year basis. During the same period in the prior year, the company posted $0.42 earnings per share. As a group, equities research analysts predict that Robinhood Markets will post 2.15 earnings per share for the current year.

Insider Activity at Robinhood Markets

In other news, Director Baiju Bhatt sold 43,373 shares of the stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $114.28, for a total value of $4,956,666.44. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Tenev sold 240,834 shares of the firm’s stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $125.33, for a total transaction of $30,183,725.22. Following the completion of the sale, the chief executive officer owned 240,834 shares of the company’s stock, valued at $30,183,725.22. This trade represents a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 1,121,121 shares of company stock worth $132,674,478. 13.48% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. State Street Corp boosted its position in Robinhood Markets by 2.7% during the fourth quarter. State Street Corp now owns 33,121,452 shares of the company’s stock worth $3,746,036,000 after purchasing an additional 875,297 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Robinhood Markets by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 21,171,925 shares of the company’s stock valued at $2,386,944,000 after buying an additional 356,902 shares in the last quarter. Norges Bank purchased a new position in shares of Robinhood Markets in the fourth quarter valued at $1,202,160,000. Sumitomo Mitsui Trust Group Inc. raised its stake in shares of Robinhood Markets by 10.2% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 6,812,999 shares of the company’s stock worth $472,141,000 after buying an additional 632,403 shares during the last quarter. Finally, Amundi raised its stake in shares of Robinhood Markets by 89.0% during the 1st quarter. Amundi now owns 6,385,232 shares of the company’s stock worth $442,497,000 after buying an additional 3,007,103 shares during the last quarter. 93.27% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Robinhood Markets

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

• Positive Sentiment: Prediction markets are emerging as a major growth driver: Robinhood’s event-contracts revenue reportedly increased more than tenfold year over year. The company is expanding beyond sports into crypto-linked contracts, creating a potentially significant new source of transaction revenue and customer engagement. Robinhood event-contract revenue article
• Positive Sentiment: Diversification supports the long-term growth case: Robinhood is expanding into banking, retirement accounts, active trading, crypto and blockchain products. These initiatives could deepen customer relationships and reduce dependence on stock-trading activity. The company also joined Coinbase’s Oura IPO offering as an underwriter, strengthening its role in retail IPO access, although underwriting does not guarantee customer allocations. Robinhood diversification article Robinhood and Coinbase IPO article
• Positive Sentiment: Fundamentals remain robust: The latest reported quarter showed revenue growth of 32.5% year over year, while earnings exceeded analyst expectations. Jim Cramer and several analysts remain constructive on Robinhood’s platform, technology and long-term growth potential. Jim Cramer Robinhood commentary
• Neutral Sentiment: Competition is intensifying: Public has introduced AI agents for prediction-market trading, while new data from Needham suggests professional trading activity may distort reported market-share comparisons. The developments validate demand but could make it harder for Robinhood to capture lasting market share. Public AI prediction-market article
• Negative Sentiment: CEO selling is weighing on sentiment: CEO Vladimir Tenev sold roughly $32.5 million and $30.2 million of HOOD shares on September 21 and 22, respectively, cutting his direct holdings by half. The sales were made under pre-arranged Rule 10b5-1 plans, which reduces their signaling value, but the combined transactions have nevertheless encouraged profit-taking. Robinhood CEO insider sale
• Negative Sentiment: Regulatory and valuation risks remain: Prediction markets face mounting legal and regulatory challenges, while HOOD’s valuation remains demanding after a substantial rally. Sector-wide weakness among brokerage stocks and concern that professional trading volumes may be less durable are adding to near-term pressure.

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.