Robinhood Stock Buy Hold or Sell Recommendation

HOOD -  USA Stock  

USD 15.17  0.13  0.85%

Given the investment horizon of 90 days and your bold attitude towards risk, our recommendation regarding Robinhood Markets is 'Hold'. Macroaxis provides Robinhood Markets buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding HOOD positions. The advice algorithm takes into account all of Robinhood Markets' available fundamental, technical, and predictive indicators you will find on this site.

Robinhood Advice 

 
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The advice is provided from Robinhood Markets' buy-and-hold perspective. Please check Robinhood Markets Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Robinhood and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Robinhood Markets.

Execute Robinhood Markets Buy or Sell Advice

The Robinhood recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Robinhood Markets. Macroaxis does not own or have any residual interests in Robinhood Markets or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Robinhood Markets' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Robinhood MarketsBuy Robinhood Markets
Hold

Volatility

Not too volatileDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Quite HighDetails

Economic Sensitivity

Actively responds to the marketDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

FrailDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Robinhood Markets has a Risk Adjusted Performance of (0.28), Jensen Alpha of (1.52), Total Risk Alpha of (1.70) and Treynor Ratio of (0.77)
Our trade recommendations tool can cross-verify current analyst consensus on Robinhood Markets and to analyze the firm potential to grow in the current economic cycle. To make sure Robinhood Markets is not overpriced, please check all Robinhood Markets fundamentals, including its shares owned by institutions, cash per share, price to earnings to growth, as well as the relationship between the revenue and book value per share . Given that Robinhood Markets has a number of shares shorted of 29.03 M, we recommend you to check out Robinhood Markets market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Robinhood Markets Trading Alerts and Improvement Suggestions

Robinhood Markets generated a negative expected return over the last 90 days
Robinhood Markets has high historical volatility and very poor performance
Robinhood Markets has high likelihood to experience some financial distress in the next 2 years
The company reported the previous year's revenue of 1.77 B. Net Loss for the year was (3.25 B) with profit before overhead, payroll, taxes, and interest of 709.85 M.
Robinhood Markets currently holds about 10.66 B in cash with (262.44 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 12.4.
Robinhood Markets has a frail financial position based on the latest SEC disclosures
Roughly 68.0% of the company shares are owned by institutional investors
Latest headline from www.benzinga.com: Robinhood Made 51M From Crypto Trades Last Quarter, But Sees No Reason To Invest Company Cash - Benzin - Benzinga

Robinhood Markets current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Robinhood analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Robinhood analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price41.66
Target Median Price40.00
Target High Price84.20
Recommendation Mean2.70
Number Of Analyst Opinions14
Target Low Price17.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Robinhood Markets Returns Distribution Density

The distribution of Robinhood Markets' historical returns is an attempt to chart the future uncertainty of Robinhood Markets' future price movements. The chart of the probability distribution of Robinhood Markets stock daily returns describes the distribution of returns around its average expected value. We use Robinhood Markets price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Robinhood Markets returns is essential to provide solid investment advice for Robinhood Markets stock.
Mean Return-1.4Value At Risk-8.12
Potential Upside5.12Standard Deviation3.99
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Robinhood Markets historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Robinhood Stock 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.
Security TypeSharesValue
Fny Investment Advisers LlcCommon Shares150.6 K2.7 M
Exchange Traded Concepts LlcCommon Shares99.8 K1.8 M
Dnb Asset Management AsCommon Shares18.8 K333.1 K
Fny Investment Advisers LlcCall Options100017 K
Gradient Investments LlcCommon Shares156K
Activest Wealth ManagementCommon Shares122K
Ifp Advisors IncCommon Shares24.01000
Patriot Financial Group Insurance Agency LlcCommon Shares40.01000
Note, although Robinhood Markets' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Robinhood Markets Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Robinhood Markets or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Robinhood Markets stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Robinhood stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-1.52
β
Beta against DOW1.83
σ
Overall volatility
4.04
Ir
Information ratio -0.37

Robinhood Markets Volatility Alert

Robinhood Markets exhibits very low volatility with skewness of -0.24 and kurtosis of -0.29. However, we advise investors to further study Robinhood Markets technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Robinhood Markets' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Robinhood Markets' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Robinhood Markets Implied Volatility

Robinhood Markets' implied volatility exposes the market's sentiment of Robinhood Markets stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Robinhood Markets' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Robinhood Markets stock will not fluctuate a lot when Robinhood Markets' options are near their expiration.

Robinhood Markets Fundamentals Vs Peers

Comparing Robinhood Markets' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Robinhood Markets' direct or indirect competition across all of the common fundamentals between Robinhood Markets and the related equities. This way, we can detect undervalued stocks with similar characteristics as Robinhood Markets or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Robinhood Markets' fundamental indicators could also be used in its relative valuation, which is a method of valuing Robinhood Markets by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Robinhood Markets to competition
FundamentalsRobinhood MarketsPeer Average
Profit Margin(183.63) %(1.27) %
Operating Margin(68.02) %(5.51) %
Current Valuation6.36 B16.62 B
Shares Outstanding835.68 M571.82 M
Shares Owned by Insiders7.61 %10.09 %
Shares Owned by Institutions68.32 %39.21 %
Number of Shares Shorted29.03 M4.71 M
Price to Book1.76 X9.51 X
Price to Sales7.16 X11.42 X
Revenue1.77 B9.43 B
Gross Profit709.85 M27.38 B
Net Income(3.25 B)570.98 M
Cash and Equivalents10.66 B2.7 B
Cash per Share12.40 X5.01 X
Total Debt3.28 B5.32 B
Debt to Equity0.44 %48.70 %
Current Ratio1.47 X2.16 X
Book Value Per Share8.63 X1.93 K
Cash Flow from Operations(262.44 M)971.22 M
Short Ratio1.97 X4.00 X
Earnings Per Share(9.77) X3.12 X
Price to Earnings To Growth(0.03) X4.89 X
Number of Employees3.4 K18.84 K
Market Capitalization12.68 B19.03 B
Z Score1.88.72
   Robinhood Markets exotic insider transaction detected [view details]

About Robinhood Markets Buy or Sell Advice

When is the right time to buy or sell Robinhood Markets? Buying financial instruments such as Robinhood Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Robinhood Markets investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2010 2020 2021 2022 (projected)
Current Assets3.88 B10.87 B12.5 B10.85 B
Total Assets3.94 B10.99 B12.64 B10.97 B

Use Investing Ideas to Build Portfolios

In addition to having Robinhood Markets in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Beer and Liquor Thematic Idea Now

Beer and Liquor
Beer and Liquor Theme
Fama and French focuses on testing asset pricing under different economic assumptions. Beer and Liquor theme has 29 constituents.
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Please check Robinhood Markets Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Robinhood Markets information on this page should be used as a complementary analysis to other Robinhood Markets' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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Is Robinhood Markets' industry 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.
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.
Please note, there is a significant difference between Robinhood Markets' value and its price as these two are different measures arrived at by different means. Investors typically determine Robinhood Markets value 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.