Analysts at Barclays have reduced their price target for Robinhood Markets (NASDAQ: HOOD) from $171.00 to $159.00 in a research report issued on October 26, 2023. Despite this adjustment, Barclays maintains an “overweight” rating on the stock. The new target price suggests a potential upside of approximately 37.79% from the stock’s previous closing value.
Several other brokerages have also reassessed their positions on Robinhood Markets recently. On September 23, Citigroup raised its price target from $120.00 to $135.00, assigning a “neutral” rating. In contrast, Bank of America lowered its target from $166.00 to $154.00, while keeping a “buy” rating. Additionally, Needham & Company adjusted its target from $145.00 to $135.00, also rating the stock as a “buy.”
The Goldman Sachs Group reiterated a “buy” rating earlier this week. Meanwhile, CICC Research began covering Robinhood Markets on October 27, issuing an “outperform” rating with a price target of $155.00. Overall, market analysts have assigned Robinhood a consensus rating of “Moderate Buy” with an average price target of $136.20, according to data from MarketBeat.com.
Recent Earnings and Insider Trading Activity
In its latest quarterly earnings report, announced on November 5, 2023, Robinhood exceeded analysts’ expectations with an earnings per share (EPS) of $0.61, surpassing the consensus estimate of $0.41 by $0.20. The company achieved a net margin of 52.19% and a return on equity of 21.74%. Revenue reached $1.27 billion, significantly higher than the expected $1.15 billion. This marks a remarkable 100% increase in revenue compared to the same quarter last year, when the firm reported an EPS of $0.17.
On the insider trading front, Steven M. Quirk, an executive at Robinhood, sold 49,942 shares on December 3, 2023, at an average price of $131.15, yielding a total of approximately $6.55 million. Following this transaction, Quirk retained 54,496 shares valued at around $7.15 million. This sale represented a significant decrease of 47.82% in his holdings.
Additionally, Director Baiju Bhatt sold 418,338 shares on November 17, 2023, at an average price of $116.56, amounting to approximately $48.76 million. In total, insiders sold 3,296,763 shares worth about $414 million over the last 90 days, with insiders currently owning 14.47% of the company’s stock.
Institutional Investor Activity
Institutional investors have also been active regarding Robinhood Markets. Fulton Bank N.A. increased its stake by 7.8% in the fourth quarter, now holding 6,510 shares valued at approximately $736,000. Meanwhile, Wealth Enhancement Advisory Services LLC expanded its position by 26.3%, now owning 365,551 shares worth around $44.48 million.
Other notable changes include Gryphon Financial Partners LLC, which acquired a new stake valued at approximately $407,000, and Nordea Investment Management AB, which increased its holding by 5.2%, now owning 712,721 shares worth about $81.59 million. Overall, hedge funds and institutional investors currently own 93.27% of Robinhood Markets.
With the ongoing fluctuations in price targets and significant insider trading activity, Robinhood Markets remains a focal point for investors and analysts alike as it continues to navigate a dynamic financial landscape.
