Robinhood Markets: Mixed Signals from Financial Analysts ahead of Q1 Earnings Report

On May perhaps 10th, 2023, Robinhood Markets (NASDAQ:HOOD) is set to report its quarterly earnings results immediately after the sector closes. Analysts are anticipating the inventory trading platform to expose a decline of ($.60) for every share for the quarter. This news follows combined alerts from money analysts who have been issuing competing opinions on HOOD’s potential customers in the latest weeks.

JPMorgan Chase & Co. has lifted its rate concentrate on on Robinhood shares from $9.00 to $11.00, supplying it an “underweight” score back in February this year. JMP Securities has reaffirmed a “market outperform” score and set a $25.00 cost target on HOOD shares as of March 13th, though Deutsche Bank Aktiengesellschaft increased their cost aim from $9.00 to $11.00 and gave the stock a “hold” rating on Feb 9th.

Goldman Sachs Group, on the other hand, dropped their rate goal for Robinhood Marketplaces from $12.50 to $9.00 and established a “neutral” score on the stock in January this yr along with KeyCorp which reduced their concentrate on price tag for HOOD from $13.00 to $12.00 but remained bullish with an “overweight” rating assigned to the shares.

With regards insider trading at Robinhood Marketplaces, there have been notable gross sales worth observing more than the past quarter Baiju Bhatt marketed 19,918 shares at an average cost of $11.28 per share by means of a transaction dated February 2nd that netted him close to a quarter of a million pounds ahead of Daniel Martin Gallagher Jr., an additional insider executed his own transactions marketing off 11673 shares worthy of around a single hundred and 13 thousand bucks.

It’s also well worth noting that insiders bought off almost six hundred thousand shares of firm inventory within Q1’2023 by yourself with company insiders presently keeping 15.31{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the company’s shares.

As February’s insider sale was declared through filing with the SEC, traders may possibly want to keep an eye on Robinhood Marketplaces as it prepares to issue its quarterly earnings report on May possibly 10th this year utilizing the website link presented for the company’s earnings convention get in touch with. In the meantime, Bloomberg reviews that Robinhood holds a consensus rating of “Hold” and has an normal selling price target of $11.91, while with analysts giving various thoughts primarily based on their perspectives, buyers will need to have to acquire a diversified watch to fully variety their financial investment tactic on any positions they hold on Robinhood Markets’ shares.

Robinhood Markets reports Q1 loss, but investors continue to keep hope alive for future growth

On Wednesday, May possibly 3, 2023, Robinhood Marketplaces (NASDAQ:HOOD) described its quarterly earnings results for the initial quarter of the present fiscal yr. The corporation recorded a decline of ($.19) for each share (EPS) for the quarter. Sad to say, this skipped analyst anticipations of ($.13) by $.06, indicating an unfavorable report.

Moreover, Robinhood Markets experienced a negative return on fairness of 8.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, and a negative net margin of 131.63{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The video game-modifying fintech startup noted profits of $380 million through the quarter, notably decrease than the consensus estimate of $395.16 million.

On the other hand, despite this less-than-great report, Robinhood Markets’ quarterly profits improved by 4.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} compared to the identical period final yr when it posted a loss of ($.49) EPS.

The money platform’s inventory opened for investing at $8.46 on May perhaps 3rd as opposed to its previous year’s substantial at above double that value, i.e., $12.76 in May 2022.

Robinhood Markets has an unimpressive market cap of $7.58 billion with a P/E ratio that is technically detrimental at -1.21 and beta at just more than one particular (1). These statistics suggest that some traders might have reservations in any respect about investing in this business or contemplate it also unstable for their liking.

Even so, various hedge resources and institutional investors preserve stakes in HOOD irrespective of these dismal numbers and even added to their existing holdings currently or seized new ones completely either trying to find undervalued property or hoping for an greatest transform-all-around tale afterwards on.

For instance:

  1. Raymond James & Associates elevated its position in Robinhood by an additional 16,133 shares in Q1 adhering to performance testimonials.
  2. Cambridge Expenditure Investigate Advisors lifted its situation in Robinhood by 69.{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} during the initial quarter after purchasing an further 8,882 shares.
  3. HighTower Advisors LLC included 25,502 shares to its position in Robinhood Marketplaces, representing a 38.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} enhance in Q1 following good earnings final results.

Getting these holdings into account, it is risk-free to say that there may possibly be a long term for the tech startup on Wall Street at the time much more. Yet, analysts anticipate that Robinhood Markets may possibly report $-1 EPS for the latest fiscal 12 months and $ EPS for the future fiscal year – which usually means buyers really should brace them selves for opportunity losses or lean in direction of lengthy-time period investment decision methods.

In summary, even though Robinhood’s reduction this quarter was unforeseen and disappointing compared to former figures earning buyers cautious of investing in HOOD presently, the market place optimism proven by numerous hedge cash and other institutional investors may perhaps sign a chance amidst the disruption of conventional money providers many thanks entirely to new technologies and impressive expense methods this sort of as what Robinhood brings into perform with its system.

Minnie Arwood

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