Robinhood Markets (NASDAQ:HOOD) Stock Rating Raised to “Strong-Buy” at Evercore

Evercore upgraded shares of Robinhood Markets (NASDAQ:HOOD) to a strong-buy rating in a research report sent to investors on Monday, Marketbeat reports. The brokerage currently has $130.00 target price on the stock.

A number of other equities analysts also recently issued reports on the company. JPMorgan Chase & Co. upped their price target on Robinhood Markets from $99.00 to $103.00 and gave the company a “neutral” rating in a report on Thursday, July 30th. Sanford C. Bernstein reissued an “outperform” rating and set a $160.00 price objective on shares of Robinhood Markets in a report on Tuesday, September 8th. Jefferies Financial Group raised their price objective on shares of Robinhood Markets from $127.00 to $140.00 and gave the stock a “buy” rating in a report on Tuesday, September 8th. Citigroup restated a “market outperform” rating on shares of Robinhood Markets in a research report on Friday. Finally, Zacks Research upgraded shares of Robinhood Markets from a “hold” rating to a “strong-buy” rating in a report on Thursday, September 3rd. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $129.69.

Robinhood Markets Stock Up 0.2%

Robinhood Markets stock opened at $109.22 on Monday. The stock has a market cap of $98.20 billion, a PE ratio of 48.11, a P/E/G ratio of 2.13 and a beta of 2.35. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.22 and a quick ratio of 1.22. The stock’s fifty day moving average is $108.32 and its two-hundred day moving average is $95.42. Robinhood Markets has a 1-year low of $63.51 and a 1-year high of $150.47.

Robinhood Markets (NASDAQ:HOOD) last released its quarterly earnings data 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. 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 during the quarter, compared to analysts’ expectations of $1.29 billion. During the same period in the prior year, the firm posted $0.42 EPS. The business’s quarterly revenue was up 32.5% compared to the same quarter last year. On average, sell-side analysts expect that Robinhood Markets will post 2.14 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Daniel Gallagher, Jr. sold 10,000 shares of the company’s stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $113.71, for a total value of $1,137,100.00. Following the completion of the sale, the insider directly owned 499,943 shares of the company’s stock, valued at $56,848,518.53. This represents a 1.96% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Tenev sold 375,000 shares of the firm’s stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $113.72, for a total value of $42,645,000.00. Following the transaction, the chief executive officer owned 375,000 shares in the company, 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 three months, insiders sold 1,089,658 shares of company stock worth $127,966,018. Corporate insiders own 13.48% of the company’s stock.

Hedge Funds Weigh In On Robinhood Markets

A number of hedge funds have recently modified their holdings of the business. Wellington Management Group LLP boosted its position in Robinhood Markets by 37.1% during the second quarter. Wellington Management Group LLP now owns 786,318 shares of the company’s stock worth $78,852,000 after purchasing an additional 212,855 shares in the last quarter. Nykredit A S acquired a new stake in Robinhood Markets in the second quarter valued at $29,008,000. Public Employees Retirement System of Ohio purchased a new position in shares of Robinhood Markets in the second quarter valued at $22,691,000. NewEdge Advisors LLC increased its position in shares of Robinhood Markets by 18.3% in the second quarter. NewEdge Advisors LLC now owns 68,920 shares of the company’s stock valued at $6,911,000 after buying an additional 10,685 shares in the last quarter. Finally, Groupe la Francaise acquired a new position in shares of Robinhood Markets during the 2nd quarter worth $5,544,000. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

Robinhood Markets News Summary

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

About Robinhood Markets

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.