Is Robinhood Markets Stock a Good Investment?
Robinhood Markets Investment Advice | HOOD |
- Examine Robinhood Markets' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Robinhood Markets' leadership team and their track record. Good management can help Robinhood Markets navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Financial Exchanges & Data space and any emerging trends that could impact Robinhood Markets' business and its evolving consumer preferences.
- Compare Robinhood Markets' performance and market position to its competitors. Analyze how Robinhood Markets is positioned in terms of product offerings, innovation, and market share.
- Check if Robinhood Markets pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Robinhood Markets' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Robinhood Markets stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Robinhood Markets is a good investment.
Sell | Buy |
Buy
Market Performance | Strong | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Robinhood Markets Stock
Researching Robinhood Markets' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 70.0% of the company shares are owned by institutional investors. The company had not issued any dividends in recent years.
To determine if Robinhood Markets is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Robinhood Markets' research are outlined below:
| Robinhood Markets appears to be risky and price may revert if volatility continues | |
| Robinhood Markets currently holds about 9.46 B in cash with (157 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 10.74. | |
| Robinhood Markets has a frail financial position based on the latest SEC disclosures | |
| Roughly 70.0% of the company shares are owned by institutional investors | |
| Latest headline from insidermonkey.com: Robinhood Markets, Inc. Q2 2025 Earnings Call Transcript |
Robinhood Markets Quarterly Gross Profit |
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Robinhood Markets uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Robinhood Markets. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Robinhood Markets' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 13th of February 2024 Upcoming Quarterly Report | View | |
| 8th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 13th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Robinhood Markets' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Robinhood Markets' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2023-11-07 | 2023-09-30 | -0.1 | -0.09 | 0.01 | 10 | ||
2023-02-08 | 2022-12-31 | -0.14 | -0.11 | 0.03 | 21 | ||
2024-02-13 | 2023-12-31 | -0.01 | 0.03 | 0.04 | 400 | ||
2023-08-02 | 2023-06-30 | -0.01 | 0.03 | 0.04 | 400 | ||
2022-08-02 | 2022-06-30 | -0.37 | -0.32 | 0.05 | 13 | ||
2024-08-07 | 2024-06-30 | 0.15 | 0.21 | 0.06 | 40 | ||
2022-04-28 | 2022-03-31 | -0.36 | -0.45 | -0.09 | 25 | ||
2022-11-02 | 2022-09-30 | -0.31 | -0.2 | 0.11 | 35 |
Robinhood Markets Target Price Consensus
Robinhood target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Robinhood Markets' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 21 | Strong Buy |
Most Robinhood analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Robinhood stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Robinhood Markets, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationRobinhood Markets Target Price Projection
Robinhood Markets' current and average target prices are 106.37 and 62.08, respectively. The current price of Robinhood Markets is the price at which Robinhood Markets is currently trading. On the other hand, Robinhood Markets' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Robinhood Markets Market Quote on 5th of August 2025
Target Price
Analyst Consensus On Robinhood Markets Target Price
Robinhood Markets Analyst Ratings
Robinhood Markets' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Robinhood Markets stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Robinhood Markets' financials, market performance, and future outlook by experienced professionals. Robinhood Markets' historical ratings below, therefore, can serve as a valuable tool for investors.Know Robinhood Markets' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Robinhood Markets is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Robinhood Markets backward and forwards among themselves. Robinhood Markets' institutional investor refers to the entity that pools money to purchase Robinhood Markets' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Nikko Asset Management Americas Inc | 2025-03-31 | 11.3 M | Morgan Stanley - Brokerage Accounts | 2025-03-31 | 10.6 M | Ark Investment Management Llc | 2025-03-31 | 10.2 M | Sumitomo Mitsui Trust Group Inc | 2025-06-30 | 9.5 M | Two Sigma Advisers, Llc | 2025-03-31 | 5.8 M | Agf Management Ltd | 2025-03-31 | 5.7 M | Susquehanna International Group, Llp | 2025-03-31 | 5.6 M | Charles Schwab Investment Management Inc | 2025-03-31 | 4.9 M | Bank Of America Corp | 2025-03-31 | 4.4 M | Vanguard Group Inc | 2025-03-31 | 74.2 M | Blackrock Inc | 2025-03-31 | 40.5 M |
Robinhood Markets' market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 88.77 B.Market Cap |
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Robinhood Markets' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.05 | 0.06 | |
| Return On Capital Employed | 0.13 | 0.14 | |
| Return On Assets | 0.05 | 0.06 | |
| Return On Equity | 0.18 | 0.19 |
Determining Robinhood Markets' profitability involves analyzing its financial statements and using various financial metrics to determine if Robinhood Markets is a good buy. For example, gross profit margin measures Robinhood Markets' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Robinhood Markets' profitability and make more informed investment decisions.
Please note, the presentation of Robinhood Markets' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Robinhood Markets' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Robinhood Markets' management manipulating its earnings.
Evaluate Robinhood Markets' management efficiency
Robinhood Markets has return on total asset (ROA) of 0.0466 % which means that it generated a profit of $0.0466 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.2354 %, meaning that it created $0.2354 on every $100 dollars invested by stockholders. Robinhood Markets' management efficiency ratios could be used to measure how well Robinhood Markets manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.06. The current year's Return On Capital Employed is expected to grow to 0.14. At present, Robinhood Markets' Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 764.4 M, whereas Total Current Assets are forecasted to decline to about 20.9 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 9.05 | 4.85 | |
| Tangible Book Value Per Share | 8.80 | 4.74 | |
| Enterprise Value Over EBITDA | 31.74 | 30.15 | |
| Price Book Value Ratio | 4.12 | 4.32 | |
| Enterprise Value Multiple | 31.74 | 30.15 | |
| Price Fair Value | 4.12 | 4.32 | |
| Enterprise Value | 36 B | 22.2 B |
The management team at Robinhood Markets has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Beta 2.37 |
Basic technical analysis of Robinhood Stock
As of the 5th of August, Robinhood Markets holds the Semi Deviation of 1.81, risk adjusted performance of 0.264, and Coefficient Of Variation of 307.27. Robinhood Markets technical analysis gives you tools to exploit past prices in attempt to determine a pattern that determines the direction of the company's future prices. Please check Robinhood Markets jensen alpha, and the relationship between the coefficient of variation and potential upside to decide if Robinhood Markets is priced some-what accurately, providing market reflects its current price of 106.37 per share. Given that Robinhood Markets has jensen alpha of 0.954, we recommend you to check out Robinhood Markets's recent market performance to make sure the company can sustain itself at a future point.Robinhood Markets' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Robinhood Markets insiders, such as employees or executives, is commonly permitted as long as it does not rely on Robinhood Markets' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Robinhood Markets insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Robinhood Markets' Outstanding Corporate Bonds
Robinhood Markets issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Robinhood Markets uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Robinhood bonds can be classified according to their maturity, which is the date when Robinhood Markets has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| BNP Paribas FRN Corp BondUSF1R15XK367 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View |
Understand Robinhood Markets' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Robinhood Markets' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.264 | |||
| Market Risk Adjusted Performance | 0.7021 | |||
| Mean Deviation | 2.79 | |||
| Semi Deviation | 1.81 | |||
| Downside Deviation | 2.37 | |||
| Coefficient Of Variation | 307.27 | |||
| Standard Deviation | 3.48 | |||
| Variance | 12.09 | |||
| Information Ratio | 0.2928 | |||
| Jensen Alpha | 0.954 | |||
| Total Risk Alpha | 0.6649 | |||
| Sortino Ratio | 0.4288 | |||
| Treynor Ratio | 0.6921 | |||
| Maximum Drawdown | 17.69 | |||
| Value At Risk | (3.23) | |||
| Potential Upside | 7.41 | |||
| Downside Variance | 5.64 | |||
| Semi Variance | 3.29 | |||
| Expected Short fall | (3.53) | |||
| Skewness | 0.7575 | |||
| Kurtosis | 0.8188 |
| Risk Adjusted Performance | 0.264 | |||
| Market Risk Adjusted Performance | 0.7021 | |||
| Mean Deviation | 2.79 | |||
| Semi Deviation | 1.81 | |||
| Downside Deviation | 2.37 | |||
| Coefficient Of Variation | 307.27 | |||
| Standard Deviation | 3.48 | |||
| Variance | 12.09 | |||
| Information Ratio | 0.2928 | |||
| Jensen Alpha | 0.954 | |||
| Total Risk Alpha | 0.6649 | |||
| Sortino Ratio | 0.4288 | |||
| Treynor Ratio | 0.6921 | |||
| Maximum Drawdown | 17.69 | |||
| Value At Risk | (3.23) | |||
| Potential Upside | 7.41 | |||
| Downside Variance | 5.64 | |||
| Semi Variance | 3.29 | |||
| Expected Short fall | (3.53) | |||
| Skewness | 0.7575 | |||
| Kurtosis | 0.8188 |
Consider Robinhood Markets' intraday indicators
Robinhood Markets intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Robinhood Markets stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 4.2 M | |||
| Daily Balance Of Power | 0.6712 | |||
| Rate Of Daily Change | 1.06 | |||
| Day Median Price | 101.97 | |||
| Day Typical Price | 103.44 | |||
| Price Action Indicator | 7.63 | |||
| Period Momentum Indicator | 6.47 |
Robinhood Markets Corporate Filings
10Q | 31st of July 2025 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 30th of July 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 29th of July 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 17th of July 2025 Other Reports | ViewVerify |
Robinhood Stock media impact
There is far too much social signal, news, headlines, and media speculation about Robinhood Markets that are available to investors today. This information is accessible both publicly - through Robinhood Markets' media outlets and privately, via word of mouth or internal channels. However, regardless of the source, the sheer volume of Robinhood-related data is difficult to distill into actionable insights, especially for investors who are not well-versed in the rapidly evolving tools and techniques of investment management.
A primary focus of Robinhood Markets news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Robinhood Markets relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Robinhood Markets' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Robinhood Markets alpha.
Robinhood Markets Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Robinhood Markets can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Robinhood Markets Historical Investor Sentiment
Investor biases related to Robinhood Markets' public news can be used to forecast risks associated with an investment in Robinhood. The trend in average sentiment can be used to explain how an investor holding Robinhood can time the market purely based on public headlines and social activities around Robinhood Markets. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Robinhood Markets' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Robinhood Markets and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Robinhood Markets news discussions. The higher the estimate score, the more favorable the investor's outlook on Robinhood Markets.
Robinhood Markets Maximum Pain Price Across October 17th 2025 Option Contracts
Robinhood Markets' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Robinhood Markets close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Robinhood Markets' options.
Robinhood Markets Corporate Management
| Lucas JD | General VP | Profile | |
| Johann Kerbrat | VP Crypto | Profile | |
| Jason CPA | Chief Officer | Profile | |
| Jeffrey Pinner | Chief Officer | Profile | |
| Connie Schan | Chief Officer | Profile | |
| Vladimir Tenev | President, CoFounder | Profile | |
| JD Gallagher | Compliance Legal | Profile |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Robinhood Markets. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. For information on how to trade Robinhood Stock refer to our How to Trade Robinhood Stock guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Financial Exchanges & Data space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Robinhood Markets. If investors know Robinhood will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Robinhood Markets listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1 | Earnings Share 1.97 | Revenue Per Share | Quarterly Revenue Growth 0.45 | Return On Assets |
The market value of Robinhood Markets is measured differently than its book value, which is the value of Robinhood that is recorded on the company's balance sheet. Investors also form their own opinion of Robinhood Markets' value that differs from its market value or its book value, called intrinsic value, which is Robinhood Markets' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Robinhood Markets' market value can be influenced by many factors that don't directly affect Robinhood Markets' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Robinhood Markets' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Robinhood Markets is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Robinhood Markets' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.