Morgan Stanley has increased its price target for Robinhood Markets (NASDAQ: HOOD) to $147.00, up from $146.00, according to a report released on December 3, 2023. The firm maintains an equal weight rating on the stock, reflecting a balanced view of Robinhood’s market position. This adjustment comes amidst several recent updates from other financial analysts regarding Robinhood’s stock performance.
Citigroup recently raised its price target on Robinhood Markets from $120.00 to $135.00 and assigned the stock a “neutral” rating. Additionally, CICC Research began coverage of Robinhood Markets with an “outperform” rating and a target price of $155.00. On the other hand, Needham & Company reiterated a “buy” rating, setting a target price of $145.00. KeyCorp also made headlines by increasing its price target from $135.00 to $155.00, while maintaining an “overweight” rating.
Analysts have shown a generally optimistic outlook for Robinhood, with two equity research analysts rating it as a Strong Buy. Fourteen have given it a Buy rating, seven have issued a Hold rating, and one has assigned a Sell rating. According to data from MarketBeat.com, Robinhood Markets currently holds an average rating of “Moderate Buy” with a mean target price of $137.30.
Recent Earnings and Insider Activity
Robinhood Markets released its earnings results on November 5, 2023, reporting earnings per share (EPS) of $0.61, significantly surpassing the consensus estimate of $0.41 by $0.20. The company generated revenue of $1.27 billion during the quarter, beating analyst expectations of $1.15 billion. This impressive performance marks a 100% increase in revenue compared to the same quarter the previous year. The company reported a return on equity of 21.74% and a net margin of 52.19%.
In terms of insider trading, Daniel Martin Gallagher, Jr., an insider at Robinhood, sold 120,000 shares on December 3, 2023, at an average price of $132.13, amounting to a total value of approximately $15.86 million. Following this transaction, Gallagher retained 430,012 shares in the company, valued at around $56.82 million, indicating a 21.82% decrease in ownership. Another insider, Steven M. Quirk, sold 49,942 shares on the same day at an average price of $131.15, totaling about $6.55 million. Quirk now holds 54,496 shares, valued at approximately $7.15 million, reflecting a 47.82% drop in their stake.
Institutional Stake Adjustments
Recent activities among hedge funds have also influenced Robinhood’s stock dynamics. Hantz Financial Services Inc. increased its holdings by 120.3% in the second quarter, now owning 271 shares valued at $25,000. Valley National Advisers Inc. grew its stake by 113.6% in the third quarter, acquiring 188 shares worth $26,000. Golden State Wealth Management LLC and other firms also adjusted their positions in Robinhood, collectively enhancing their stakes.
Currently, institutional investors hold approximately 93.27% of Robinhood Markets’ stock, indicating strong institutional confidence in the company’s future prospects.
In summary, Robinhood Markets continues to attract attention from analysts and investors alike, with recent upgrades in price targets and solid earnings performance contributing to a positive market sentiment. As the company navigates the competitive landscape of financial services, its ability to maintain growth and attract retail investors remains crucial.
