Evercore Initiates Coverage on Robinhood Markets (NASDAQ:HOOD)

Equities research analysts at Evercore started coverage on shares of Robinhood Markets (NASDAQ:HOOD) in a research report issued to clients and investors on Monday, Marketbeat reports. The brokerage set an “outperform” rating and a $130.00 price target on the stock. Evercore’s target price points to a potential upside of 17.63% from the company’s current price.

Several other research analysts have also weighed in on HOOD. Wells Fargo & Company initiated coverage on shares of Robinhood Markets in a research note on Friday, October 2nd. They set an “equal weight” rating and a $125.00 price objective on the stock. Raymond James Financial reaffirmed a “market perform” rating on shares of Robinhood Markets in a report on Monday, October 5th. BTIG Research raised their target price on shares of Robinhood Markets from $125.00 to $135.00 and gave the company a “buy” rating in a research note on Tuesday, September 29th. Scotiabank initiated coverage on Robinhood Markets in a report on Wednesday, September 2nd. They set a “sector outperform” rating and a $136.00 price target for the company. Finally, Wall Street Zen upgraded Robinhood Markets from a “strong sell” rating to a “sell” rating in a report on Sunday, July 12th. Two analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $129.82.

Robinhood Markets Trading Up 1.2%

NASDAQ HOOD opened at $110.52 on Monday. Robinhood Markets has a 12 month low of $63.51 and a 12 month high of $150.47. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.23. The stock has a 50 day moving average of $108.66 and a 200-day moving average of $95.68. The company has a market cap of $99.37 billion, a PE ratio of 48.69, a PEG ratio of 2.14 and a beta of 2.35.

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

Insider Transactions at Robinhood Markets

In other news, insider Steven M. Quirk sold 24,416 shares of the firm’s stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $120.33, for a total transaction of $2,937,977.28. Following the completion of the sale, the insider owned 77,839 shares in the company, valued at approximately $9,366,366.87. This trade represents a 23.88% decrease in their position. The transaction 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 firm’s stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $113.72, for a total transaction of $42,645,000.00. Following the sale, 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 90 days, insiders sold 1,089,658 shares of company stock valued at $127,966,018. Corporate insiders own 13.48% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Central Pacific Bank Trust Division bought a new stake in shares of Robinhood Markets during the third quarter worth approximately $678,000. Eastern Bank boosted its position in shares of Robinhood Markets by 13.3% in the third quarter. Eastern Bank now owns 1,700 shares of the company’s stock valued at $191,000 after acquiring an additional 200 shares during the period. QRG Capital Management Inc. boosted its position in shares of Robinhood Markets by 14.8% in the second quarter. QRG Capital Management Inc. now owns 180,595 shares of the company’s stock valued at $18,110,000 after acquiring an additional 23,253 shares during the period. Envestnet Portfolio Solutions Inc. grew its stake in shares of Robinhood Markets by 31.7% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 15,529 shares of the company’s stock valued at $1,557,000 after acquiring an additional 3,738 shares in the last quarter. Finally, Capstone Financial Advisors Inc. grew its stake in shares of Robinhood Markets by 17.5% in the second quarter. Capstone Financial Advisors Inc. now owns 3,569 shares of the company’s stock valued at $358,000 after acquiring an additional 532 shares in the last quarter. Institutional investors and hedge funds own 93.27% of the company’s stock.

Robinhood Markets News Summary

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

• Positive Sentiment: Analyst price targets moved higher. Truist raised its target from $130 to $134 and maintained a Buy rating, implying meaningful upside from recent levels. Evercore ISI also initiated coverage with an Outperform rating and a $130 target. Truist raises Robinhood price target Evercore initiates Robinhood coverage
• Positive Sentiment: Earnings expectations are improving ahead of the October 27 report. Robinhood’s prior quarter beat analyst estimates, while Wall Street’s average price target and earnings outlook have risen since July. The company’s expanding product portfolio is supporting optimism about continued revenue growth. Robinhood target hike and earnings outlook
• Positive Sentiment: Blockchain and crypto activity provide additional growth catalysts. Robinhood reported approximately $15 billion in stock-token trading during the first 100 days of its blockchain, highlighting potential for new transaction revenue and broader international or digital-asset expansion. Robinhood stock-token trading
• Neutral Sentiment: Commentary continues to frame Robinhood as a faster-growing but more volatile alternative to established financial-market businesses. Its “one-stop shop” strategy, including crypto and prediction markets, could expand monetization, but execution remains important. CME versus Robinhood comparison
• Negative Sentiment: Large insider and shareholder sales remain a potential overhang. Robinhood’s CEO sold about $42.6 million of shares, while Cathie Wood’s investment firm sold roughly $38 million. The transactions reportedly had different motivations, but may still concern investors about supply and valuation. Robinhood insider and shareholder sales

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.