Robinhood Markets (NASDAQ:HOOD) Stock Price Up 3.2% – Time to Buy?

Robinhood Markets, Inc. (NASDAQ:HOOD) shares traded up 3.2% during mid-day trading on Friday. The company traded as high as $81.60 and last traded at $80.91. Approximately 16,369,241 shares traded hands during mid-day 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 Analyst Weigh In

A number of research analysts have recently commented on HOOD shares. Piper Sandler reiterated an “overweight” rating and set a $145.00 price target (up from $135.00) on shares of Robinhood Markets in a report on Wednesday, September 2nd. BTIG Research restated a “buy” rating and issued a $135.00 price objective on shares of Robinhood Markets in a research note on Wednesday, October 28th. Bank of America raised their price objective on shares of Robinhood Markets from $140.00 to $156.00 and gave the stock a “buy” rating in a research note on Monday, October 5th. Jefferies Financial Group boosted their target price on shares of Robinhood Markets from $127.00 to $140.00 and gave the stock a “buy” rating in a research report on Tuesday, September 8th. Finally, KeyCorp cut their target price on shares of Robinhood Markets from $140.00 to $135.00 and set an “overweight” rating for the company in a research note 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 assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Robinhood Markets has an average rating of “Moderate Buy” and a consensus target price of $126.45.

Robinhood Markets Price Performance

The company has a market cap of $72.74 billion, a price-to-earnings ratio of 37.29, a price-to-earnings-growth ratio of 1.80 and a beta of 2.56. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.26. The company has a fifty day moving average price of $105.97 and a two-hundred day moving average price of $92.30.

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

Insider Transactions at Robinhood Markets

In other Robinhood Markets news, CAO Dara Bazzano sold 4,473 shares of the business’s stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $85.32, for a total value of $381,636.36. Following the sale, the chief accounting officer owned 3,000 shares of the company’s stock, valued at $255,960. The trade was a 59.86% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 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 shares were sold at an average price of $113.72, for a total transaction of $42,645,000.00. Following the completion of the transaction, the chief executive officer owned 375,000 shares of the company’s stock, valued at approximately $42,645,000. This represents a 50.00% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 1,095,820 shares of company stock worth $128,775,816. 13.48% of the stock is currently owned by company insiders.

Institutional Trading of Robinhood Markets

A number of institutional investors and hedge funds have recently added to or reduced their stakes in HOOD. James T. Borello RIA bought a new position in Robinhood Markets during the third quarter worth about $29,000. C M Bidwell & Associates Ltd. bought a new stake in shares of Robinhood Markets in the 2nd quarter valued at approximately $27,000. Continuum Advisory LLC bought a new stake in shares of Robinhood Markets in the 2nd quarter valued at approximately $40,000. Three Bridge Wealth Advisors LLC bought a new stake in shares of Robinhood Markets in the 3rd quarter valued at approximately $50,000. Finally, Cassaday & Co Wealth Management LLC acquired a new position in shares of Robinhood Markets in the 1st quarter worth approximately $33,000. Institutional investors own 93.27% of the company’s stock.

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.