Evercore Initiates Coverage on Robinhood Markets (NASDAQ:HOOD)

Stock analysts at Evercore assumed coverage on shares of Robinhood Markets (NASDAQ:HOOD) in a research note issued to investors on Monday, Marketbeat Ratings reports. The firm set an “outperform” rating and a $130.00 price target on the stock. Evercore’s price target indicates a potential upside of 19.03% from the company’s current price.

Several other research firms also recently weighed in on HOOD. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Robinhood Markets in a research report on Monday, September 21st. Benchmark upgraded Robinhood Markets to a “strong-buy” rating in a research note on Wednesday, September 9th. CICC Research lifted their price objective on Robinhood Markets from $100.00 to $110.00 and gave the company an “outperform” rating in a research note on Friday, July 31st. Piper Sandler reissued an “overweight” rating and issued a $145.00 price objective (up from $135.00) on shares of Robinhood Markets in a research report on Wednesday, September 2nd. Finally, Needham & Company LLC lifted their price target on Robinhood Markets from $120.00 to $123.00 and gave the stock a “buy” rating in a report on Wednesday, September 16th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Robinhood Markets currently has a consensus rating of “Moderate Buy” and an average target price of $129.69.

Robinhood Markets Stock Up 0.2%

HOOD stock opened at $109.22 on Monday. The firm’s 50 day moving average price is $108.32 and its 200-day moving average price is $95.42. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.22 and a current ratio of 1.22. The firm has a market cap of $98.20 billion, a PE ratio of 48.11, a PEG ratio of 2.13 and a beta of 2.35. Robinhood Markets has a one year low of $63.51 and a one year high of $150.47.

Robinhood Markets (NASDAQ:HOOD) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.62 EPS for the quarter, beating the consensus estimate of $0.44 by $0.18. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%. The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same quarter in the prior year, the company posted $0.42 EPS. The company’s quarterly revenue was up 32.5% on a year-over-year basis. On average, equities research analysts anticipate that Robinhood Markets will post 2.14 EPS for the current year.

Insiders Place Their Bets

In other news, insider Steven Quirk sold 24,416 shares of the business’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $120.33, for a total transaction of $2,937,977.28. Following the sale, the insider owned 77,839 shares of the company’s stock, valued at $9,366,366.87. The trade was a 23.88% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Baiju Bhatt sold 50,317 shares of Robinhood Markets stock in a transaction on Friday, August 14th. The stock was sold at an average price of $96.80, for a total value of $4,870,685.60. 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 three months, insiders have sold 1,089,658 shares of company stock worth $127,966,018. Insiders own 13.48% of the company’s stock.

Institutional Trading of Robinhood Markets

Hedge funds have recently added to or reduced their stakes in the business. MV Capital Management Inc. bought a new stake in shares of Robinhood Markets in the fourth quarter valued at about $27,000. C M Bidwell & Associates Ltd. bought a new position in Robinhood Markets in the second quarter valued at approximately $27,000. SHP Wealth Management bought a new position in shares of Robinhood Markets in the 4th quarter valued at $32,000. Glen Eagle Advisors LLC raised its holdings in shares of Robinhood Markets by 812.9% during the 4th quarter. Glen Eagle Advisors LLC now owns 283 shares of the company’s stock worth $32,000 after buying an additional 252 shares in the last quarter. Finally, Copos Capital S.a r.l. bought a new position in Robinhood Markets in the fourth quarter valued at about $33,000. 93.27% of the stock is owned by institutional investors and hedge funds.

Key Robinhood Markets News

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

• Positive Sentiment: Evercore ISI initiated coverage with an Outperform rating and a $130 price target, implying roughly 19% potential upside from the reference price. The firm sees Robinhood’s “product flywheel”—adding trading, crypto, prediction markets and other financial services—as a driver of user growth, engagement and revenue. Robinhood: Evercore ISI sees product flywheel driving upside
• Positive Sentiment: Evercore analysts said Robinhood has multiple growth opportunities, including crypto, prediction markets, deposits and additional financial products. They believe sustained deposit monetization and newer businesses could support upside not fully reflected in the valuation. Robinhood’s one-stop-shop strategy
• Positive Sentiment: Additional reporting highlighted strong performance across retail-investing platforms, with expanding funded accounts and greater use of research, data and artificial-intelligence tools. The trend supports Robinhood’s long-term customer acquisition and engagement prospects. Retail trading platforms post record quarters
• Neutral Sentiment: Robinhood’s CEO sold approximately $42.6 million of shares, while Cathie Wood sold about $38 million. The transactions could create a short-term supply overhang, though the reports characterize the sales as stemming from different circumstances rather than a common fundamental warning. Robinhood insider and Cathie Wood share sales
• Negative Sentiment: Uncertainty surrounding legal challenges to cryptocurrency-based perpetual futures could affect one area of the broader crypto and derivatives opportunity, although the direct impact on Robinhood remains unclear. The future of perpetual futures markets

Robinhood Markets Company Profile

Robinhood Markets, Inc (NASDAQ: HOOD) operates a financial services platform designed to provide investing and trading products through mobile applications and a website. Its offerings include commission-free trading in stocks and exchange-traded funds, options trading, cryptocurrency services, margin investing, and retirement accounts. The company also provides cash management features and other tools intended to help customers manage and invest their money.

Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood gained prominence by expanding access to investing through a low-cost, easy-to-use digital platform.