Robinhood Markets (HOOD) announced on Tuesday that it will acquire TradePMR for $300 million in a cash and stock deal. TradePMR is a custodial and portfolio management platform for registered investment advisors (RIA). With this acquisition, the financial services company aims to enter the investment advisory business and expand its offerings.
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The acquisition of TradePMR is expected to close in the first half of 2025. The company stated that the RIA market is worth $7 trillion and represents a significant opportunity for the financial services company.
HOOD Is Steadily Expanding Its Services
Over the past few months, Robinhood has steadily transformed into a comprehensive financial services provider. The company has introduced a credit card, launched a desktop trading platform, and expanded its capabilities to include futures and index options trading. Additionally, Robinhood rolled out contracts allowing users to bet on the U.S. presidential election.
Is HOOD Stock a Good Buy?
Analysts remain cautiously optimistic about HOOD stock, with a Moderate Buy consensus rating based on nine Buys, seven Holds, and one Sell. Over the past three months, HOOD has soared by more than 70%, and the average HOOD price target of $27.38 implies a downside potential of 22.1% from current levels.
