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In a recent transaction, Jason Warnick, the Chief Financial Officer of Robinhood Markets , Inc. (NASDAQ:HOOD), sold a significant portion of his holdings in the company. The stock has shown remarkable performance, surging over 330% in the past year, according to InvestingPro data. On February 14, Warnick sold 150,000 shares of Class A Common Stock at a weighted-average price of $63.72 per share, amounting to a total of approximately $9.56 million. This sale was conducted in multiple trades throughout the day, with prices ranging from $63.50 to $64.06. The transaction comes as Robinhood, now valued at over $52 billion, trades at a P/E ratio of 37 and shows significant price volatility. InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value.
In addition to the sale, Warnick also exercised options to acquire 150,000 shares at a price of $5.93 per share. These transactions are part of Warnick’s ongoing management of his equity in the company. Following these activities, Warnick retains ownership of 896,543 shares of Robinhood’s Class A Common Stock. For deeper insights into insider trading patterns and comprehensive analysis, including 12 additional ProTips, check out the full Robinhood research report on InvestingPro.
In other recent news, Robinhood Markets Inc. reported a record-breaking fourth quarter for its cryptocurrency revenue, which surged to $360 million, marking a nearly fivefold increase from the previous quarter. This significant growth now accounts for almost 40% of Robinhood’s total quarterly revenue, up from approximately 20% in the third quarter of 2024. Following these impressive earnings results, Needham raised its price target for Robinhood to $70, maintaining a Buy rating. The firm cited Robinhood’s strong EBITDA margin of 60% and growth across all transaction segments as key factors in its decision.
Additionally, Keefe, Bruyette & Woods increased their price target for Robinhood to $60, maintaining a Market Perform rating. The firm noted that Robinhood’s earnings per share outperformed expectations, driven by strong transaction revenues. Piper Sandler also maintained an Overweight rating with a price target of $75, highlighting Robinhood’s potential earnings growth from an expansive product roadmap, including new offerings like futures and crypto assets.
Despite some current weakness in crypto trading volumes, Needham anticipates a significant uptick in the second half of 2025, partly due to Robinhood’s acquisition of Bitstamp. This acquisition is expected to increase the company’s cryptocurrency trading volumes by approximately 40%. These recent developments indicate a positive outlook for Robinhood as it continues to expand its service offerings and strengthen its position in the market.
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