Robinhood Markets (NASDAQ:HOOD) Shares Up 1.9% After Better-Than-Expected Earnings

Robinhood Markets, Inc. (NASDAQ:HOOD) was up 1.9% during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $96.71 and last traded at $94.56. Approximately 23,303,431 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 26,532,457 shares. The stock had previously closed at $92.84.

The company reported $0.60 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.04. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. The firm had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.44 billion.

More Robinhood Markets News

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

• Positive Sentiment: Ripple partnership expands Robinhood’s infrastructure. Robinhood will use Ripple’s infrastructure for RLUSD stablecoin activity, institutional markets and treasury management. The agreement could broaden trading and financing options for institutional clients, improve internal cash management and support Robinhood’s goal of becoming a global financial “super-app.” Ripple strikes deal with Robinhood to expand its RLUSD digital dollar
• Positive Sentiment: Investors see growth beyond cryptocurrency trading. Coverage highlights Robinhood’s expansion into prediction markets, tokenized assets, retirement products and other business lines. Bernstein reportedly estimates prediction markets could generate $1.7 billion in annual revenue by 2028, potentially becoming larger than crypto as a growth driver. Bernstein sees Robinhood prediction markets reaching $1.7 billion in revenue by 2028
• Neutral Sentiment: Third-quarter earnings are the immediate catalyst. Robinhood is expected to report after the market close, with prediction-market traders assigning roughly a two-thirds probability to an EPS result above $0.56. Investors will focus on trading volumes, crypto activity, operating expenses, user growth and commentary on AI trading, tokenization and prediction markets. Robinhood earnings prediction market preview
• Negative Sentiment: Valuation and market sensitivity remain concerns. Analysts note that HOOD trades at a premium despite its recent decline, while revenue remains exposed to crypto prices, retail trading activity and potentially rising expenses. The stock’s high beta can amplify both earnings gains and disappointments. Should Robinhood shares be in your portfolio ahead of Q3 earnings?

Analysts Set New Price Targets

HOOD has been the topic of several recent analyst reports. Rothschild & Co Redburn lifted their price target on Robinhood Markets from $78.00 to $80.00 and gave the stock a “sell” rating in a research report on Friday, August 14th. Scotiabank initiated coverage on Robinhood Markets in a research report on Wednesday, September 2nd. They issued a “sector outperform” rating and a $136.00 price objective for the company. Barclays raised their price objective on shares of Robinhood Markets from $105.00 to $132.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 7th. Rosenblatt Securities initiated coverage on shares of Robinhood Markets in a research report on Wednesday, October 21st. They set a “buy” rating and a $135.00 target price on the stock. Finally, Piper Sandler reissued an “overweight” rating and issued a $145.00 price target (up from $135.00) on shares of Robinhood Markets in a report on Wednesday, September 2nd. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $130.29.

Insider Activity at Robinhood Markets

In other Robinhood Markets news, insider Daniel Gallagher, Jr. sold 10,000 shares of the business’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $113.71, for a total value of $1,137,100.00. Following the transaction, the insider directly owned 499,943 shares in the company, valued at $56,848,518.53. The trade was a 1.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven Quirk sold 24,416 shares of the business’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $120.33, for a total value of $2,937,977.28. Following the completion of the transaction, the insider directly owned 77,839 shares in the company, valued at $9,366,366.87. The trade was a 23.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 1,091,347 shares of company stock valued at $128,447,880. Insiders own 13.48% of the company’s stock.

Hedge Funds Weigh In On Robinhood Markets

Several large investors have recently bought and sold shares of the business. Bank of New York Mellon Corp acquired a new position in shares of Robinhood Markets in the 2nd quarter valued at $379,695,000. Amundi raised its stake in Robinhood Markets by 89.0% during the 1st 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 period. Renaissance Technologies LLC raised its stake in Robinhood Markets by 48.6% during the 1st 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 period. Hound Partners LLC bought a new position in Robinhood Markets during the first quarter worth about $73,150,000. Finally, Amova Asset Management Americas Inc. lifted its holdings 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 acquiring an additional 685,041 shares in the last quarter. 93.27% of the stock is currently owned by institutional investors and hedge funds.

Robinhood Markets Trading Up 1.9%

The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.23. The stock has a market capitalization of $85.02 billion, a P/E ratio of 41.66, a price-to-earnings-growth ratio of 1.89 and a beta of 2.35. The company has a fifty day simple moving average of $108.81 and a two-hundred day simple moving average of $93.55.

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.