Robinhood Markets director Baiju Bhatt sells $9.23 million in stock

MENLO PARK, CA—On January 3, Baiju Bhatt, a director at Robinhood Markets , Inc. (NASDAQ:HOOD), executed a significant stock sale under a pre-arranged trading plan. The transaction comes as Robinhood's stock has surged over 226% in the past year, with the company now commanding a market capitalization of $35.7 billion. Bhatt sold 228,645 shares of Robinhood's Class A common stock, generating approximately $9.23 million in proceeds. The shares were sold at a weighted-average price of $40.37, with transaction prices ranging from $39.05 to $41.37. According to InvestingPro analysis, the stock is currently trading above its Fair Value.

The sale was part of a Rule 10b5-1 trading plan that Bhatt's Living Trust adopted on August 12, 2024. This plan allows insiders of publicly traded corporations to set up a predetermined schedule for selling stocks. As part of the transaction, Class B common stock was automatically converted into Class A common stock upon execution of the sale. With a P/E ratio of 67.16 and an overall financial health score rated as GOOD by InvestingPro, which offers comprehensive analysis and 13 additional key insights about Robinhood's valuation and growth prospects.

Following the transaction, Bhatt's Living Trust holds no shares of Class A common stock. However, Bhatt retains indirect ownership of 5,042 shares directly, and a substantial number of Class B shares remain under his control through a trust.

In other recent news, Robinhood Markets has seen a flurry of analyst upgrades and positive outlooks, with earnings and revenue growth taking center stage. JPMorgan upgraded Robinhood from Underweight to Neutral, acknowledging the company's strong financial performance, with revenue growing 35.7% and earnings per share of $0.60 over the last year. Barclays (LON:BARC) also upgraded Robinhood to Overweight, citing potential in the cryptocurrency sector and the company's expansion plans.

Robinhood's recent product launches, including the Gold credit card and a derivatives market, aim to draw in more engaged users, a move that analysts from various firms, including Piper Sandler and Mizuho (NYSE:MFG) Securities, have positively noted. The company's Q3 2024 revenues saw a 36% year-over-year increase to $637 million, and Robinhood also expanded its cryptocurrency offerings to 20 tokens.

While Goldman Sachs reaffirmed its Buy rating on Robinhood, projecting the company's fourth-quarter trading revenue to be 51% higher than consensus estimates, analysts from JPMorgan expressed a cautious stance due to the highly competitive environment and uncertain outlook. These are recent developments that investors should closely monitor.

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