The stock of online trading platform Robinhood Markets (HOOD) has enjoyed a meteoric rise this year, having risen 124% and outpacing nearly every other security.
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Analysts at Jefferies Financial Group (JEF) say that those gains have been fueled by voracious trading on the part of individual retail investors. According to a new report from Jefferies, retail trading now accounts for about 20.5% of total volume in a given day. That’s double the 10% seen in 2010, and ahead of the 15% trading volume that hedge funds are responsible for, on average, each day.
Increasingly, Robinhood Markets is both the trading platform of choice for retail investors and one of the most popular stocks among the retail crowd, says Jefferies. Strong trading volumes have propelled Robinhood’s financial results in recent quarters, helping HOOD stock to more than double in the first half of 2025.
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Retail investors also reportedly like the diversification taking place at Robinhood, which has expanded aggressively into new offerings such as credit cards and cryptocurrencies in recent years. Stocks that retail investors frequently Buy and Sell on Robinhood’s platform include familiar names such as Tesla (TSLA), Palantir Technologies (PLTR), MicroStrategy (MSTR), and Super Micro Computer (SMCI), among others.
A separate report from Goldman Sachs (GS) noted that June trading on Robinhood’s platform was stronger than anticipated, particularly related to options trading. The popularity of Robinhood Markets with individual investors was one factor that led Goldman to recently raise its price target on HOOD stock to $91 from $82 previously, implying a further 10% upside from current levels.
Is HOOD Stock a Buy?
The stock of Robinhood Markets has a consensus Moderate Buy rating among 20 Wall Street analysts. That rating is based on 14 Buy, five Hold, and one Sell recommendations issued in the last three months. The average HOOD price target of $65.95 implies 21.11% downside risk from current levels.
