HomeMarket NewsMizuho Just Raised Its Price Target on Robinhood (HOOD) Stock

Mizuho Just Raised Its Price Target on Robinhood (HOOD) Stock

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HOOD stock - Mizuho Just Raised Its Price Target on Robinhood (HOOD) Stock

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Robinhood (NASDAQ:HOOD) stock is trending in the green this morning after the company posted much better-than-expected first-quarter results. The positivity is being largely driven by a resurgence of retail trading activity on Robinhoodโ€™s platform.

In the wake of the results, several banks and analyst firms, including Japanโ€™s Mizuho, raised their price targets on HOOD stock.

Robinhoodโ€™s Q1 Results

Amid the results, Robinhood reported that it was able to gain market share from competitors and also benefited from increased interest in crypto among retail investors. The company was able to attract some gold investors to its platform as well.

For the period, Robinhoodโ€™s top line jumped 40% versus the same period a year earlier to $618 million. Analysts, on average, had predicted for sales to come in at $553 million, per MarketWatch. The company also generated EPS of 18 cents, well above analystsโ€™ mean outlook of 6 cents per share.

Mizuho responded to the results by raising its price target on HOOD stock to $23 from $21. Calling Robinhoodโ€™s performance โ€œvery strong,โ€ the firm cited crypto and monthly average users (MAUs) as two areas in which Robinhood had excelled.

Meanwhile, JMP Securities increased its price target on shares to $30 from $28. Piper Sandler also boosted its target to $18 from $17.

The SEC Has Warned Robinhood

Last week, the U.S. Securities and Exchange Commission (SEC) reported via a Wells Notice that it may take enforcement actions against Robinhood. In particular, the SEC believes the firmโ€™s crypto listings may violate regulations.

โ€œWe firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be,โ€ said Robinhood Chief Legal, Compliance and Corporate Affairs Officer Dan Gallagher.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article.ย The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comย Publishing Guidelines

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israelโ€™s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

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