According to a report from Investing.com, ARK ETF sold 89,915 shares of the online brokerage firm, worth about $7.5 million.
- Robinhood has multiple recent positive catalysts, including gaining the IPO underwriter status, the removal of the PDT rule, strong trading activity in May, and insider confidence.
- In May, the company’s equity trading volume climbed 27% month-over-month and 75% year-over-year.
- On Wednesday, Goldman Sachs analyst James Yaro raised the price target on Robinhood to $108 from $105 and maintained a ‘Buy’ rating on the shares after its May metrics update, according to TheFly.
Shares of Robinhood Markets Inc. (HOOD) edged more than 2% higher in the overnight trading session headed into Thursday, even as Cathie Wood’s ARK Invest reportedly offloaded a significant amount of shares in the company.
According to a report from Investing.com, ARK ETF sold 89,915 shares of the online brokerage firm, worth about $7.5 million. The sale comes amid a series of positive developments for the company that have boosted Wall Street confidence, although retail traders on Stocktwits remain ‘bearish.’
HOOD Stock: Multiple Positive Catalysts
Robinhood has multiple positive catalysts that support a bullish thesis for the company, including its recent status as an IPO underwriter, the removal of the Pattern Day Trader (PDT) rule, strong trading activity updates, and insider confidence.
The company’s CEO Vlad Tenev said on Tuesday that Robinhood Securities had secured approval to serve as an IPO underwriter, indicating its transition from a purely distribution role in the cycle into mainstream underwriting alongside major Wall Street banks.
"Since IPO Access launched in 2021, we've watched retail go from an afterthought to a key part of how companies plan an IPO," Tenev said in a post on X, adding that becoming an underwriter was the "natural next step" for Robinhood. The announcement comes as mega public listings of OpenAI, Anthropic, and SpaceX are slated to debut in U.S. markets this year.
Additionally, Robinhood posted strong monthly updates in May, noting that its total platform assets climbed to a record $377 billion at the end of the month, a 48% increase from a year earlier. Among the disclosures, the company’s trading activity was especially strong, with equity trading volume climbing 27% month-over-month and 75% year-over-year, while average daily equity trading volume surged 84% from a year ago. The brokerage firm also posted strong growth in options trading volume, event contracts, and margin balances.
A regulatory filing from Tuesday also revealed insider trading, further bolstering confidence in the company. The company’s director and venture-focused Ribbit Capital’s founder Meyer Malka purchased 250,000 shares of Robinhood for a total value of $20.2 million.
What Does Wall Street Think?
On Wednesday, Goldman Sachs analyst James Yaro raised the price target on Robinhood to $108 from $105 and maintained a ‘Buy’ rating on the shares after its May metrics update, according to TheFly.
Truist Securities reiterated a ‘Buy’ rating and $100 price target on Robinhood after the metrics update, noting that the company would likely see improvement in securities lending revenue from upcoming large IPOs, according to a report from Investing.com. The analyst said that with the stock trading in the $80s, it predicted a favorable risk-reward in the long term.
As per data from Koyfin, HOOD has a 12-month average price target of $100.36, indicating an upside potential of more than 16% from its last close of $86.36.
HOOD Stock: Retail Stance
On Stocktwits, retail sentiment around HOOD declined from ‘neutral’ to ‘bearish’ territory over the past 24 hours as message volumes stayed ‘high.’
One user noted the various positive updates for the company, saying “surprised to see still below 100+.”
View this Stocktwits post
Another bullish user said, “Underwriting ipos is big news to me.”
View this Stocktwits post
HOOD shares have lost 25% of their value so far this year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
