Robinhood Markets (NASDAQ: HOOD) received a boost from Cantor Fitzgerald, which upgraded the company to a “strong buy” in a recent research note shared with investors. This upgrade reflects growing optimism around the stock among several analysts who have recently issued their ratings.
In the scholarly environment of stock analysis, Weiss Ratings maintained a “hold” rate on Robinhood’s shares, while Argus initiated coverage with a “buy” rating and a price target of $145.00 set for the stock. Truist Financial also expressed confidence in the company by beginning coverage with a “buy” rating and a target of $155.00. Along with these, Needham & Company lowered their price target from $145.00 to $135.00, but still maintains a “buy” rating. Barclays adjusted its expectations for Robinhood, decreasing their target price from $171.00 to $159.00 while giving it an “overweight” rating.
Analysts have shown varied perspectives on the stock with a mixed rating system; two analysts have given it a “strong buy,” fourteen suggest a “buy,” eight recommend a “hold,” and one analyst advises a “sell.” The overall consensus reflects a “Moderate Buy,” with a current average price target of $136.62 according to MarketBeat.com.
As for its stock performance, HOOD opened at $105.24 and has a market capitalization of $94.63 billion. The company’s P/E ratio is noted at 43.67, with a P/E/G ratio of 1.67, indicating substantial engagement from investors. Over the past year, Robinhood has seen shares fluctuate, reaching a low of $29.66 and a high of $153.86.
The latest earnings report from Robinhood, announced on November 5, showed promising results, with the company achieving $0.61 earnings per share, surpassing the anticipated $0.41. Additionally, Robinhood’s revenue reached $1.27 billion, well above the $1.15 billion forecast by analysts, marking an impressive 100% increase year-over-year.
Insider trading activity has garnered attention, as CEO Vladimir Tenev recently sold 375,000 shares, valued at approximately $45.6 million, while Director Baiju Bhatt sold 1.33 million shares for around $170.9 million. Over the past three months, insiders have sold 2.87 million shares totaling nearly $357.5 million, with insiders retaining about 19.95% ownership of the stock.
In the realm of institutional trading, interest and investment in Robinhood have shifted. Notable moves include Migdal Insurance & Financial Holdings purchasing new shares in the fourth quarter, and Evergreen Capital Management increasing its stake by nearly 10%. Overall, institutional investors hold 93.27% of the company’s stock, indicating strong backing from larger investment entities.
Founded in 2013 by Tenev and Bhatt, Robinhood Markets stands out for its mission to “democratize finance for all,” gaining traction through its user-friendly mobile trading application that provides commission-free trades, catering to retail investors’ growing needs.
With analysts’ increasing support and the company’s impressive financial performance, Robinhood Markets is positioning itself favorably in the financial services industry, showcasing continuous promise and resilience in a dynamic market.