Robinhood Surges Past Analyst Price Targets: A Signal for Investors?
Recently, shares of Robinhood Markets Inc (Symbol: HOOD) hit $48.15, surpassing the average 12-month target price of $47.22 set by analysts. When this happens, analysts typically face two choices: adjust their target prices upward or downgrade due to valuation concerns. Their reactions often hinge on the company’s recent business developments. If the company’s outlook appears bright, raising the target price might be a fitting response.
According to the Zacks coverage universe, 18 different analyst targets contribute to the average for Robinhood Markets Inc. However, averages can be misleading. While one analyst has set a conservative target of $18.00, another is much more optimistic, projecting a price of $60.00. The standard deviation among these estimates stands at $11.913, indicating notable variations in analyst opinions.
The purpose of examining the average price target for HOOD is to leverage collective analyst insights. This “wisdom of crowds” approach allows investors to weigh various individual forecasts rather than relying on a single expert’s view. With HOOD now trading above the average target price of $47.22/share, investors must evaluate the situation: Is this merely a temporary milestone on the path to a higher target, or have valuations surged too far, prompting a reassessment of their investments? Below is a table displaying the current views of the analysts covering Robinhood Markets Inc:
| Recent HOOD Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 11 | 11 | 9 | 9 |
| Buy ratings: | 2 | 2 | 0 | 0 |
| Hold ratings: | 5 | 4 | 8 | 8 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 1 | 1 | 1 |
| Average rating: | 1.64 | 1.75 | 2.11 | 2.11 |
The average rating in the table above is based on a scale from 1 to 5, where 1 indicates a Strong Buy and 5 represents a Strong Sell. This article references data provided by Zacks Investment Research via Quandl.com. For the latest Zacks research report on HOOD, click here — FREE.
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• NYX Historical Stock Prices
• CXSE Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
