With the coming Trump administration, much has been made over which organizations are likely to be winners, and which are likely to be losers. And for Bernstein analysts, online trading platform Robinhood Markets (HOOD) is set to be a major winner.
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Bernstein analysts upgraded their position on Robinhood to Outperform, calling the stock “the top crypto deregulation trade.” It also hiked its price target to $51 from $30. This proved a puzzling development to some. While Robinhood is likely to be a beneficiary of crypto deregulation, calling it the “top” play was seen as a stretch to certain people.
Robinhood’s target audience has grown though and with its crypto presence comparatively light so far—just 15 tokens at last report—the opportunity to ramp things up and grow is substantial.
A Difference of Opinion
Bernstein was not alone in its assessment of HOOD stock. John Todaro, a five-star rated analyst at investment bank Needham & Company, hiked his outlook on Robinhood from Neutral to Buy, calling Robinhood a likely beneficiary as well. Todaro noted that a Trump administration will mean more crypto securities trading for Robinhood.
But internally there is a different matter brewing. Robinhood’s CFO, Jason Warnick, recently sold 50,000 shares of Robinhood stock, which brought him $1.75 million, according to a U.S. Securities and Exchange Commission (SEC) filing. Warnick still has nearly a million shares left to sell, which suggests this is less an abandoning ship and more a rebalancing of his portfolio.
Is Robinhood a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HOOD stock based on 10 Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 333.76% rally in its share price over the past year, the average HOOD price target of $30.29 per share implies 15.34% downside risk.
