Robinhood Markets (NASDAQ:HOOD) Shares Climb 3.2% – Here’s What Happened

Robinhood Markets, Inc. (NASDAQ:HOOD) rose 3.2% during mid-day trading on Friday. The stock traded as high as $81.60 and last traded at $80.91. Approximately 16,369,241 shares were traded during trading, a decline of 38% from the average session volume of 26,436,262 shares. The stock had previously closed at $78.39.

Key Robinhood Markets News

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

Wall Street Analysts Forecast Growth

HOOD has been the topic of a number of analyst reports. Jefferies Financial Group lifted their price target on Robinhood Markets from $127.00 to $140.00 and gave the company a “buy” rating in a report on Tuesday, September 8th. Piper Sandler restated an “overweight” rating and set a $145.00 price objective (up from $135.00) on shares of Robinhood Markets in a research note on Wednesday, September 2nd. Bank of America raised their price objective on Robinhood Markets from $140.00 to $156.00 and gave the company a “buy” rating in a research report on Monday, October 5th. The Goldman Sachs Group cut their target price on Robinhood Markets from $145.00 to $128.00 and set a “buy” rating on the stock in a research note on Wednesday, October 28th. Finally, Wells Fargo & Company reduced their target price on shares of Robinhood Markets from $120.00 to $100.00 and set an “equal weight” rating for the company in a report on Wednesday, October 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $126.45.

Robinhood Markets Stock Up 3.2%

The company’s fifty day simple moving average is $106.55 and its 200-day simple moving average is $92.42. 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 firm has a market capitalization of $72.74 billion, a PE ratio of 37.29, a price-to-earnings-growth ratio of 1.95 and a beta of 2.56.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings results on Wednesday, October 28th. The company reported $0.60 earnings per share (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 business had revenue of $1.42 billion for the quarter, compared to the consensus estimate of $1.44 billion. During the same period in the prior year, the firm posted $0.61 earnings per share. The business’s quarterly revenue was up 11.5% on a year-over-year basis. On average, analysts forecast that Robinhood Markets, Inc. will post 2.10 EPS for the current year.

Insider Buying and Selling

In other news, CAO Dara Bazzano sold 4,473 shares of the company’s stock in a transaction dated Monday, November 2nd. The shares were sold at an average price of $85.32, for a total transaction of $381,636.36. Following the transaction, the chief accounting officer owned 3,000 shares in the company, valued at $255,960. This represents a 59.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Baiju Bhatt sold 50,912 shares of the company’s stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $101.40, for a total transaction of $5,162,476.80. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,095,820 shares of company stock valued at $128,775,816 in the last 90 days. 13.48% of the stock is owned by insiders.

Institutional Trading of Robinhood Markets

A number of institutional investors have recently bought and sold shares of HOOD. Sumitomo Mitsui Trust Group Inc. raised its holdings in shares of Robinhood Markets by 10.2% in the first 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. Amundi lifted its holdings in shares of Robinhood Markets by 89.0% in the 1st quarter. Amundi now owns 6,385,232 shares of the company’s stock valued at $442,497,000 after buying an additional 3,007,103 shares during the period. Bank of New York Mellon Corp purchased a new stake in Robinhood Markets in the 2nd quarter worth approximately $379,695,000. Amova Asset Management Americas Inc. lifted its stake in shares of Robinhood Markets by 15.0% in the 1st quarter. Amova Asset Management Americas Inc. now owns 5,240,796 shares of the company’s stock valued at $362,925,000 after purchasing an additional 685,041 shares during the period. Finally, Renaissance Technologies LLC lifted its stake in shares of Robinhood Markets by 48.6% in the 1st quarter. Renaissance Technologies LLC now owns 5,104,137 shares of the company’s stock valued at $353,717,000 after purchasing an additional 1,668,400 shares during the period. 93.27% of the stock is currently owned by institutional investors and hedge funds.

About Robinhood Markets

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.