Cathie Wood’s ARK Investment Management made a notable move on Thursday, snapping up shares of Robinhood (HOOD) after the financial services firm released its Q1 earnings on April 30. Despite delivering better-than-expected results, the stock dropped over 5% following the report. Known for her bold and forward-looking bets, Wood’s latest buy signals renewed confidence in Robinhood amid broader market uncertainty.
Here’s a closer look at this latest move by Wood’s ETFs and and what analysts are saying after Robinhood’s earnings release.
ARK Loads Up on HOOD
Cathie Wood increased her stake in Robinhood through ARK Invest’s ETFs, purchasing 210,700 shares on May 1, valued at around $9.8 million. This latest purchase follows a string of buys in recent months. In early April, ARK acquired 36,250 shares worth approximately $1.39 million. Back in March, the firm bought 143,855 shares for around $5.6 million.
These continued investments reflect Wood’s long-term confidence in the online brokerage platform, despite near-term market swings.
HOOD’s Q1 Earnings Snapshot
Robinhood reported strong Q1 results on April 30. Earnings per share came in at $0.37, beating the consensus estimate of $0.32 and rising 106% year-over-year. Revenue also surpassed expectations, totaling $927 million versus the forecast of $922.53 million, marking a 50% increase from the year-ago quarter.
Still, shares fell over 5% post-earnings, as investors reacted to concerns about softening crypto trading volumes and lower margin balances.
Analysts’ Views Post HOOD’s Q1 Earnings
Post Q1 earnings results, several analysts revised their price targets for HOOD, noting strong organic growth but warning of a possible dip in trading activity amid current market conditions.
One such analyst is John Todaro of Needham, who lowered his price target to $58 from $62 but still recommends buying the stock. He pointed to a few positives, including stronger-than-expected trading activity in stocks and options during Q1 2025. He also highlighted growth in Robinhood’s Gold card user base, which doubled from 100,000 to 200,000.
However, Todaro noted that crypto trading volumes softened in the quarter and expects them to decline by about 48% in Q2, in line with broader industry trends. He also trimmed his interest income forecast due to expectations of lower interest rates, though increased trading activity could partly offset that.
Is HOOD a Good Stock to Buy Now?
According to TipRanks, HOOD stock has received a Moderate Buy consensus rating, with 14 Buys and six Holds assigned in the last three months. The average share price target for HOOD is $61.78, which implies a 32.52% upside potential over current trading levels.
