Robinhood Markets (NASDAQ:HOOD) Cut to Hold at Zacks Research

Robinhood Markets (NASDAQ:HOOD) was downgraded by equities research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Monday, Zacks reports.

A number of other analysts have also recently commented on HOOD. Deutsche Bank Aktiengesellschaft dropped their price target on Robinhood Markets from $138.00 to $134.00 and set a “buy” rating on the stock in a research report on Tuesday, September 29th. Bank of America raised their price target on Robinhood Markets from $140.00 to $156.00 and gave the company a “buy” rating in a report on Monday, October 5th. JPMorgan Chase & Co. lowered their price target on Robinhood Markets from $115.00 to $114.00 and set a “neutral” rating for the company in a research report on Wednesday, October 28th. Scotiabank dropped their price target on shares of Robinhood Markets from $136.00 to $124.00 and set a “sector outperform” rating on the stock in a research note on Wednesday, October 28th. Finally, Sanford C. Bernstein reiterated an “outperform” rating and set a $160.00 target price on shares of Robinhood Markets in a research note on Tuesday, September 8th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Robinhood Markets presently has an average rating of “Moderate Buy” and an average target price of $126.45.

Robinhood Markets Stock Performance

Shares of HOOD opened at $85.68 on Monday. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.24 and a quick ratio of 1.24. Robinhood Markets has a one year low of $63.51 and a one year high of $144.77. The company has a 50-day simple moving average of $107.65 and a two-hundred day simple moving average of $92.69. The firm has a market capitalization of $77.03 billion, a PE ratio of 39.48, a price-to-earnings-growth ratio of 1.82 and a beta of 2.56.

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. The business had revenue of $1.42 billion for the quarter, compared to analysts’ expectations of $1.44 billion. Robinhood Markets had a return on equity of 21.49% and a net margin of 39.04%. The business’s revenue was up 11.5% on a year-over-year basis. During the same period in the previous year, the firm posted $0.61 EPS. On average, analysts anticipate that Robinhood Markets will post 2.11 EPS for the current fiscal year.

Insider Buying and Selling

In other Robinhood Markets news, CEO Vladimir Tenev sold 375,000 shares of the business’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 completion of the sale, the chief executive officer owned 375,000 shares of the company’s stock, valued at approximately $42,645,000. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Shiv Verma sold 11,472 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $110.42, for a total value of $1,266,738.24. Following the completion of the transaction, the chief financial officer directly owned 56,858 shares in the company, valued at $6,278,260.36. This trade represents a 16.79% 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. Insiders have sold a total of 1,081,347 shares of company stock valued at $127,543,680 over the last ninety days. 13.48% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. RHL Group LLC raised its stake in Robinhood Markets by 170.4% during the 3rd quarter. RHL Group LLC now owns 36,151 shares of the company’s stock worth $4,067,000 after acquiring an additional 22,784 shares during the period. M Holdings Securities Inc. bought a new position in shares of Robinhood Markets in the third quarter worth approximately $472,000. Brighton Jones LLC boosted its position in shares of Robinhood Markets by 1.8% in the third quarter. Brighton Jones LLC now owns 9,864 shares of the company’s stock worth $1,110,000 after purchasing an additional 179 shares during the period. Cooper Haims Advisors LLC increased its stake in shares of Robinhood Markets by 24.3% in the third quarter. Cooper Haims Advisors LLC now owns 2,509 shares of the company’s stock worth $282,000 after purchasing an additional 491 shares in the last quarter. Finally, J. Derek Lewis & Associates Inc. increased its stake in shares of Robinhood Markets by 35.6% in the third quarter. J. Derek Lewis & Associates Inc. now owns 4,137 shares of the company’s stock worth $465,000 after purchasing an additional 1,085 shares in the last quarter. 93.27% of the stock is currently owned by institutional investors.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: A $6.3 billion Binance hack may steer some crypto investors toward regulated platforms. Goldman Sachs said that a flight to safety could benefit Robinhood, alongside Coinbase and BitGo. Goldman Sachs names stock winners and losers after $6.3 bln Binance heist
• Positive Sentiment: Tokenized stocks from Robinhood and other platforms have attracted $130.5 million in DeFi deposits, an encouraging sign of adoption for this emerging business area. Tokenized stocks from Robinhood, Binance, and Coinbase attract $130.5M in DeFi deposits
• Neutral Sentiment: Robinhood is competing for a larger retail allocation in Anthropic’s anticipated IPO. Access could attract customers and trading activity, but the CFO described the brokerage scramble for shares as a “food fight,” underscoring uncertainty about allocations. Robinhood in a “Food Fight” for Anthropic IPO Shares as Crypto Trading Cools
• Negative Sentiment: An analyst downgrade added pressure on the shares. Robinhood Markets Stock Falls 1.4% on Analyst Downgrade
• Negative Sentiment: Crypto revenue fell 55% in the third quarter, while overall revenue growth slowed to 12%. The cooling crypto business raises concerns about near-term growth, even as Robinhood expands into other products. Robinhood in a “Food Fight” for Anthropic IPO Shares as Crypto Trading Cools

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.