Key Points
- Robinhood insider Daniel Martin Gallagher, Jr. sold 10,000 shares for $850,500 at an average price of $85.05, under a pre-arranged Rule 10b5-1 plan. He retained 489,943 shares after the sale.
- Robinhood reported quarterly EPS of $0.60, beating the $0.56 consensus, while revenue of $1.42 billion came in below estimates; revenue rose 11.5% year over year.
- Analysts’ consensus rating was Moderate Buy, with an average price target of $126.45. The stock was down 10.3%, and several brokerages had recently lowered their price targets.
Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the company's stock in a transaction that occurred on Tuesday, November 3rd. The shares were sold at an average price of $85.05, for a total value of $850,500.00. Following the completion of the transaction, the insider directly owned 489,943 shares of the company's stock, valued at $41,669,652.15. This represents a 2.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Robinhood Markets Stock Down 10.3%
Shares of NASDAQ HOOD opened at $78.39 on Friday. The company has a 50 day simple moving average of $106.55 and a 200 day simple moving average of $92.42. The firm has a market cap of $70.48 billion, a PE ratio of 36.12, a price-to-earnings-growth ratio of 1.95 and a beta of 2.56. Robinhood Markets, Inc. has a 1 year low of $63.51 and a 1 year high of $140.16. 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 (NASDAQ:HOOD - Get Free Report) last posted its earnings results on Wednesday, October 28th. The company reported $0.60 EPS for the quarter, topping 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 business had revenue of $1.42 billion for the quarter, compared to the consensus estimate of $1.44 billion. During the same period last year, the company earned $0.61 EPS. The firm's revenue was up 11.5% compared to the same quarter last year. On average, research analysts forecast that Robinhood Markets, Inc. will post 2.10 EPS for the current year.
Wall Street Analysts Forecast Growth
A number of brokerages have recently commented on HOOD. Wells Fargo & Company cut their price target on shares of Robinhood Markets from $120.00 to $100.00 and set an "equal weight" rating on the stock in a report on Wednesday, October 28th. Loop Capital set a $135.00 price objective on Robinhood Markets in a report on Tuesday, September 29th. The Goldman Sachs Group lowered their target price on Robinhood Markets from $145.00 to $128.00 and set a "buy" rating for the company in a research report on Wednesday, October 28th. UBS Group reaffirmed a "buy" rating on shares of Robinhood Markets in a report on Friday, October 30th. Finally, JPMorgan Chase & Co. cut their target price on Robinhood Markets from $115.00 to $114.00 and set a "neutral" rating on the stock in a report on Wednesday, October 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $126.45.
Read Our Latest Report on Robinhood Markets
Robinhood Markets News Summary
Here are the key news stories impacting Robinhood Markets this week:
- Positive Sentiment: Robinhood could benefit from retail investor demand around Anthropic’s anticipated IPO, potentially boosting brokerage activity and advisor services. This remains a prospective catalyst, not a confirmed revenue gain. Anthropic IPO to Fuel Robinhood's Retail and Advisor Business Growth?
- Positive Sentiment: Robinhood Agents added SkyFi’s subscription-based satellite intelligence app, expanding the platform’s features and potential engagement opportunities. SkyFi's Satellite Intelligence Now Available as a Robinhood Agent App
- Neutral Sentiment: Two insiders reported share sales: CAO Dara Bazzano sold 4,473 shares and Daniel Gallagher, Jr. sold 10,000 shares. Both transactions were made under pre-arranged Rule 10b5-1 plans, which may make them less indicative of a change in outlook. SEC Form 4 filing for Daniel Gallagher, Jr.
- Negative Sentiment: A Bitcoin decline pressured Robinhood and other retail-focused fintech shares. A report also said Robinhood’s crypto revenue fell 55% in Q3, while overall revenue growth slowed to about 12%, highlighting exposure to weaker crypto activity. Fintech stocks pressured by Bitcoin and political developments
- Negative Sentiment: Democrats’ control of both chambers of Congress raised concerns that financial deregulation could slow and scrutiny of financial firms could increase. Zacks Research also downgraded HOOD from “strong-buy” to “hold.” Midterm Election Results: What's Ahead for Financial Stocks?
Institutional Inflows and Outflows
Several hedge funds have recently added to or reduced their stakes in the company. Sumitomo Mitsui Trust Group Inc. boosted its stake in shares of Robinhood Markets by 10.2% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 6,812,999 shares of the company's stock valued at $472,141,000 after purchasing an additional 632,403 shares during the last quarter. Amundi raised its stake in Robinhood Markets by 89.0% during the first quarter. Amundi now owns 6,385,232 shares of the company's stock worth $442,497,000 after buying an additional 3,007,103 shares during the last quarter. Amova Asset Management Americas Inc. raised its stake in 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 worth $362,925,000 after buying an additional 685,041 shares during the last quarter. Renaissance Technologies LLC raised its stake in Robinhood Markets by 48.6% during the first quarter. Renaissance Technologies LLC now owns 5,104,137 shares of the company's stock worth $353,717,000 after buying an additional 1,668,400 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Robinhood Markets in the second quarter valued at $379,695,000. Institutional investors own 93.27% of the company's stock.
Robinhood Markets Company Profile
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Get Free Report)
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.
Further Reading
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