Robinhood is scheduled to announce its third-quarter results on October 27, and analysts are expecting sales of $1.4 billion and earnings per share of $0.64, according to Koyfin.
- Wells Fargo cut its Robinhood price target to $120 from $125 and kept an ‘Equal Weight’ rating, ahead of the company’s earnings report.
- The new target implied about 8.6% upside and sat below the $134.56 average of 31 analysts tracked by Koyfin.
- The cut came a day after Robinhood said its Arbitrum-based Robinhood Chain hit $100 billion in cumulative decentralized exchange volume.
Shares of Robinhood Markets (HOOD) and crypto exchange Bullish (BLSH) edged lower in morning trade on Wednesday after Wells Fargo issued fresh price targets ahead of their third-quarter earnings reports.
The firm lowered its Robinhood target to $120 from $125 and kept an ‘Equal Weight’ rating. It also cut its target on Bullish to $35 from $38, again with an ‘Equal Weight’ rating.
Wells Fargo updated the estimates for the crypto exchange, including volumes and retail daily average revenue trades (DARTs), a metric that tracks how many trades customers place each day. The firm also revised its forecasts for quarter-end assets under management and other retail trading metrics.
Robinhood Target Sits Below The Street
The new Robinhood target implied about 8.6% upside from Tuesday’s close of $110.52. It sat well below the $134.56 average target of 31 analysts tracked by Koyfin. Most of those analysts remained bullish. Koyfin data showed 25 rating the stock ‘Buy’ or ‘Strong Buy,’ four at ‘Hold’ and two at ‘Sell’ or ‘Strong Sell.’
Earlier, Bank of America (BoFA) raised its target to $156 from $140, Barclays lifted its target to $132 from $105, and Truist raised Robinhood’s price target to $134 from $130. Robinhood will report its third-quarter results on October 27. Analysts expect revenue of about $1.43 billion, roughly 9% higher than a year ago. They expect earnings of $0.64 a share, about 5% above the year-ago quarter.
Robinhood Chain Crosses $100B
The cut also marked a milestone for its crypto business. Robinhood Chain, a layer-2 network built on Arbitrum (ARB) that sits on top of Ethereum (ETH) and handles trades faster and more cheaply, hit $100 billion in cumulative trading volume on decentralized exchanges (DEXs).
Robinhood’s stock tokens are traded on that chain, where eligible users outside the US can also trade tokenized versions of shares around the clock and use them as collateral for on-chain lending.
HOOD stock slipped more than 6% in morning trading. On Stocktwits, retail sentiment around HOOD was in the ‘bearish’ zone, while chatter shifted to ‘low’ from ‘normal’ levels over the past day.
Bullish Gets A Smaller Target
The new Bullish target implies about 10.2% upside from Tuesday’s close of $31.77, below the $41.09 average target from 12 analysts as per Koyfin.
Five have rated the BLSH stock ‘Buy’, seven have ‘Hold.’ Bullish shares have fallen about 47% over the past year. The company is expected to report results in November.
BLSH stock also slipped over 2% during morning trade. On Stocktwits, retail sentiment around BLSH moved to ‘neutral’ from the ‘bearish’ zone, while chatter around it stayed at ‘low’ levels over the past day.
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