CICC Research has initiated coverage of Robinhood Markets (NASDAQ: HOOD), assigning an “outperform” rating along with a price target of $155.00, according to a research note released on Monday. This target suggests a potential upside of 5.98% from the stock’s current trading level, indicating positive expectations for the financial services platform.
Analyst Ratings and Price Targets
Robinhood Markets has garnered attention from several financial analysts recently. JMP Securities increased its price target from $130.00 to $170.00 and issued a “market outperform” rating in a report on October 9th. KeyCorp followed suit, raising its price objective from $60.00 to $110.00 with an “overweight” rating on July 1st. Similarly, Keefe, Bruyette & Woods adjusted their target from $89.00 to $106.00 while maintaining a “market perform” rating on July 31st.
Furthermore, Bank of America revised its price objective from $139.00 to $157.00 and confirmed a “buy” rating on October 2nd. Piper Sandler also reiterated an “overweight” rating with a new price target of $140.00, up from $120.00, on September 23rd. Overall, thirteen analysts have assigned a Buy rating to Robinhood, while seven have given it a Hold rating and one has issued a Sell rating. As per MarketBeat.com, the stock holds an average rating of “Moderate Buy” with a consensus target price of $122.85.
Recent Earnings Performance
Robinhood Markets recently reported its earnings on July 30th, revealing an earnings per share (EPS) of $0.42, exceeding the consensus estimate of $0.30 by $0.12. The company achieved a return on equity of 17.48% and a net margin of 50.13%. The revenue for the quarter reached $989.00 million, significantly surpassing analysts’ expectations of $893.93 million. This performance marks a 45.0% increase in revenue compared to the same period last year. Analysts project Robinhood will post an EPS of 1.35 for the current fiscal year.
In the context of trading activity, Robinhood Markets shares experienced a slight increase of 0.3% following the earnings announcement.
Insider Transactions and Institutional Involvement
In addition to analyst ratings, recent insider trading activities have drawn attention. Director Baiju Bhatt sold 418,338 shares on October 21st at an average price of $133.11, totaling approximately $55.7 million. Chief Technology Officer Jeffrey Tsvi Pinner also sold 5,864 shares on October 6th for around $865,115.92. Following this transaction, Pinner holds 11,952 shares valued at about $1.76 million, indicating a 32.91% reduction in their holdings.
In the past 90 days, insiders have sold a total of 5,175,598 shares, worth approximately $579.8 million. Currently, 19.95% of Robinhood’s stock is owned by insiders.
A number of institutional investors have also been active, with hedge funds increasing their stakes in Robinhood. Hantz Financial Services Inc. raised its position by 120.3% in Q2, now owning 271 shares valued at $25,000. Hemington Wealth Management and Valley National Advisers have also significantly increased their holdings in the company. Overall, institutional investors own 93.27% of Robinhood Markets.
Robinhood Markets, Inc. operates a financial services platform in the United States, enabling users to invest in stocks, exchange-traded funds (ETFs), options, cryptocurrencies, and more. The platform is known for features such as fractional trading and around-the-clock trading, catering to a growing base of retail investors.
As the market evolves, Robinhood’s performance and the insights from analysts will continue to inform investment decisions and shape the narrative around this prominent trading platform.
