Robinhood Markets (NASDAQ:HOOD) Stock Rating Lowered by Wall Street Zen

Robinhood Markets (NASDAQ:HOOD) was downgraded by stock analysts at Wall Street Zen from a “hold” rating to a “strong sell” rating in a research note issued on Sunday, Wall Street Zen reports.

A number of other research firms have also recently issued reports on HOOD. Mizuho upped their price objective on Robinhood Markets from $130.00 to $140.00 and gave the stock an “outperform” rating in a report on Wednesday, September 9th. Barclays decreased their price objective on Robinhood Markets from $132.00 to $115.00 and set an “overweight” rating on the stock in a report on Wednesday, October 28th. Morgan Stanley upped their target price on Robinhood Markets from $150.00 to $160.00 and gave the stock an “overweight” rating in a research note on Friday, October 9th. JPMorgan Chase & Co. reduced their price target on shares of Robinhood Markets from $115.00 to $114.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 28th. Finally, Citizens Jmp reiterated a “market outperform” rating and set a $165.00 price target on shares of Robinhood Markets in a research report on Wednesday, October 28th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $126.45.

Robinhood Markets Price Performance

HOOD stock opened at $83.84 on Friday. The firm has a 50 day simple moving average of $108.00 and a two-hundred day simple moving average of $92.86. The stock has a market cap of $75.38 billion, a PE ratio of 38.64, a P/E/G ratio of 1.82 and a beta of 2.35. Robinhood Markets has a one year low of $63.51 and a one year high of $149.41. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.24 and a quick ratio of 1.22.

Robinhood Markets (NASDAQ:HOOD) last posted its quarterly earnings data on Wednesday, October 28th. The company reported $0.60 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.04. Robinhood Markets had a net margin of 39.04% and a return on equity of 21.49%. The firm had revenue of $1.42 billion for the quarter, compared to analysts’ expectations of $1.44 billion. During the same quarter last year, the company posted $0.61 EPS. The business’s quarterly revenue was up 11.5% on a year-over-year basis. On average, analysts predict that Robinhood Markets will post 2.18 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Baiju Bhatt sold 50,912 shares of the stock in a transaction dated Wednesday, October 21st. The stock was sold at an average price of $101.40, for a total transaction of $5,162,476.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, 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 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 approximately $42,645,000. The trade was a 50.00% decrease in their ownership of the stock. 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. Insiders have sold a total of 1,081,347 shares of company stock worth $127,543,680 in the last 90 days. 13.48% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in HOOD. Bank of New York Mellon Corp bought a new stake in Robinhood Markets during the second quarter worth about $379,695,000. Amundi grew its holdings in Robinhood Markets by 89.0% in the first quarter. Amundi now owns 6,385,232 shares of the company’s stock worth $442,497,000 after purchasing an additional 3,007,103 shares during the period. Renaissance Technologies LLC increased its stake in shares of Robinhood Markets by 48.6% during the first 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 in the last quarter. Hound Partners LLC bought a new position in shares of Robinhood Markets during the first quarter valued at approximately $73,150,000. Finally, Amova Asset Management Americas Inc. lifted its holdings in shares of Robinhood Markets by 15.0% during the first 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 last quarter. 93.27% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: Cantor Fitzgerald remains bullish. The firm maintained an “overweight” rating while lowering its price target from $150 to $120, still implying substantial upside from recent levels. Cantor Fitzgerald Robinhood rating
• Positive Sentiment: Robinhood’s business is becoming more diversified and profitable. Expansion into institutional services and digital banking, along with strong trading activity and growing financial-services demand, supports the longer-term growth narrative. Robinhood Markets versus Interactive Brokers
• Positive Sentiment: Analyst sentiment remains generally favorable. Wall Street coverage continues to frame HOOD as a potential buy, which may provide support after its post-earnings pullback. Wall Street analysts on Robinhood
• Neutral Sentiment: Comparisons with Interactive Brokers and Nu highlight Robinhood’s growth potential, but also emphasize that competitors have significant advantages, including global scale, professional customers, and large existing user bases. Robinhood Markets versus Nu
• Negative Sentiment: Growth has moderated. Robinhood’s revenue growth was approximately 12% last quarter; although earnings exceeded estimates, revenue came in slightly below expectations, reinforcing concerns that the company’s rapid expansion may be slowing. Robinhood post-earnings dip
• Negative Sentiment: Cryptocurrency weakness remains a key overhang. Crypto-related revenue has historically contributed heavily to Robinhood’s growth, and continued trading weakness is pressuring near-term results, even though stabilization is expected next year. Robinhood stock latest dip
• Negative Sentiment: Wall Street Zen lowered its rating on Robinhood, adding to the cautious tone surrounding the stock. Robinhood rating lowered by Wall Street Zen

About Robinhood Markets

Robinhood Markets, Inc is a financial services company that operates a digital brokerage platform. Founded in 2013 by Vlad Tenev and Baiju Bhatt, the company became known for offering commission-free trading and a mobile-first investing experience designed to broaden access to financial markets.

Through its platform, Robinhood provides brokerage services for stocks, exchange-traded funds, options and other investments. Its offerings also include cryptocurrency trading, individual retirement accounts, margin investing, cash management services and Robinhood Gold, a subscription-based product that provides additional features and benefits.