Robinhood Markets (NASDAQ:HOOD) Shares Up 2% – Should You Buy?

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price was up 2% during trading on Wednesday. The company traded as high as $88.79 and last traded at $87.41. 20,020,971 shares changed hands during trading, a decline of 24% from the average daily volume of 26,453,906 shares. The stock had previously closed at $85.68.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: Cathie Wood is buying HOOD again after selling shares ahead of a steep decline, a high-profile vote of confidence that may help sentiment. Cathie Wood is buying HOOD again
• Positive Sentiment: Robinhood generated $173 million from prediction markets last quarter—more than from crypto. The segment’s growth helped offset weaker crypto sales and could provide a new revenue driver, though regulatory uncertainty remains. Robinhood’s prediction-market revenue
• Neutral Sentiment: Robinhood’s latest quarter beat analysts’ earnings-per-share estimate, but revenue came in slightly below consensus. Results also highlighted cost discipline and customer-deposit growth. Robinhood Q3 earnings call highlights
• Neutral Sentiment: Two insiders recently sold shares: Daniel Gallagher, Jr. sold 10,000 and CAO Dara Bazzano sold 4,473. Both transactions were made under pre-arranged Rule 10b5-1 plans, so they may be less informative about current views of the stock. Gallagher share sale
• Negative Sentiment: Bitcoin’s decline recently pressured Robinhood and other retail-focused fintech stocks, underscoring the risk that reduced crypto activity could weigh on results. Political shifts in Congress have also raised concerns about slower financial deregulation and greater industry scrutiny. Bitcoin and political concerns weigh on fintech shares

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on HOOD shares. Keefe, Bruyette & Woods raised their target price on Robinhood Markets from $100.00 to $115.00 and gave the stock a “market perform” rating in a report on Tuesday, September 29th. KeyCorp lowered their price target on Robinhood Markets from $140.00 to $135.00 and set an “overweight” rating for the company in a research note on Wednesday, October 28th. Barclays cut their price target on shares of Robinhood Markets from $132.00 to $115.00 and set an “overweight” rating on the stock in a research report on Wednesday, October 28th. Mizuho lifted their price objective on shares of Robinhood Markets from $130.00 to $140.00 and gave the stock an “outperform” rating in a research note on Wednesday, September 9th. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on shares of Robinhood Markets from $138.00 to $134.00 and set a “buy” rating on the stock in a research note on Tuesday, September 29th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Robinhood Markets presently has an average rating of “Moderate Buy” and an average target price of $126.45.

Robinhood Markets Trading Up 3.2%

The company has a debt-to-equity ratio of 0.26, a current ratio of 1.24 and a quick ratio of 1.24. The stock has a market capitalization of $72.74 billion, a price-to-earnings ratio of 37.10, a PEG ratio of 1.82 and a beta of 2.56. The business has a 50 day simple moving average of $106.55 and a 200-day simple moving average of $92.42.

Robinhood Markets (NASDAQ:HOOD) last released its quarterly earnings results on Wednesday, October 28th. The company reported $0.60 EPS for the quarter, topping analysts’ consensus estimates of $0.56 by $0.04. Robinhood Markets had a return on equity of 21.49% and a net margin of 39.04%. The company had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.44 billion. During the same quarter last year, the firm posted $0.61 earnings per share. Robinhood Markets’s revenue was up 11.5% compared to the same quarter last year. As a group, equities analysts expect that Robinhood Markets, Inc. will post 2.10 earnings per share for the current year.

Insider Activity

In other news, CAO Dara Bazzano sold 4,473 shares of the stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $85.32, for a total transaction of $381,636.36. Following the completion of the sale, the chief accounting officer owned 3,000 shares of the company’s stock, valued at $255,960. This represents a 59.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Tenev sold 375,000 shares of the stock in a transaction on Monday, October 5th. The stock was sold at an average price of $113.72, for a total transaction of $42,645,000.00. Following the sale, the chief executive officer directly owned 375,000 shares of the company’s stock, valued at $42,645,000. This represents a 50.00% decrease in their position. 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. In the last ninety days, insiders sold 1,095,820 shares of company stock worth $128,775,816. Corporate insiders own 13.48% of the company’s stock.

Hedge Funds Weigh In On Robinhood Markets

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Allworth Financial LP grew its position in Robinhood Markets by 2.9% during the 3rd quarter. Allworth Financial LP now owns 17,001 shares of the company’s stock worth $1,913,000 after acquiring an additional 473 shares during the last quarter. Ariadne Wealth Management LP increased its holdings in Robinhood Markets by 6.1% in the 3rd quarter. Ariadne Wealth Management LP now owns 2,300 shares of the company’s stock worth $259,000 after purchasing an additional 133 shares in the last quarter. Nikulski Financial Inc. raised its position in Robinhood Markets by 5.0% in the third quarter. Nikulski Financial Inc. now owns 72,225 shares of the company’s stock valued at $8,125,000 after purchasing an additional 3,454 shares during the last quarter. CENTRAL TRUST Co raised its position in Robinhood Markets by 37.3% in the third quarter. CENTRAL TRUST Co now owns 5,472 shares of the company’s stock valued at $616,000 after purchasing an additional 1,487 shares during the last quarter. Finally, Fifth Third Bancorp boosted its stake in shares of Robinhood Markets by 2.3% during the third quarter. Fifth Third Bancorp now owns 141,587 shares of the company’s stock valued at $15,929,000 after purchasing an additional 3,152 shares in the last quarter. 93.27% of the stock is owned by institutional investors and hedge funds.

Robinhood Markets Company Profile

Robinhood Markets, Inc operates a digital financial services platform that gives customers access to investing and financial products through its website and mobile app. Its offerings include trading in stocks, exchange-traded funds, options and cryptocurrencies, as well as retirement accounts and cash-management services.

Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood built its business around making financial services more accessible through a mobile-first platform. The company is headquartered in Menlo Park, California, and serves customers in the United States and select international markets.

Robinhood also offers subscription-based services through Robinhood Gold, which provides eligible customers with additional account features.