Analyst: Robinhood Stock Sports Strong Fundamentals

HOOD sports a nearly 74% year-to-date gain

Jake Scott

Deputy Editor

Jun 26, 2024 at 9:23 AM

HOOD

Robinhood Markets Inc (NASDAQ:HOOD) stock is 3.6% higher before the opening bell, after Wolfe Research upgraded the online trading platform to "outperform" from "peer perform" with a $29 price target. The analyst in coverage noted HOOD sports solid fundamentals, "significant" operating leverage, and strong free cash flow generation.

On the charts, Robinhood stock touched a more than three-year high of $24.28 on June 12, spurred on by meme stock association. Even with the shares' subsequent pullback, HOOD found support at their ascending 30-day moving average and still sports a nearly 74% year-to-date lead.

Despite this solid technical setup, 11 of 16 covering brokerages still rate HOOD a "hold" or "strong sell," leaving plenty of room for more upgrades. And among options traders, the equity's Schaeffer's put/call open interest ratio (SOIR) stands higher than 94% of readings from the past year, meaning an unwinding of this put bias could provide additional tailwinds.

Now might be the time to weigh in on the stock's next move with options. According to the equity's Schaeffer's Volatility Scorecard (SVS) of 88 out of 100, it tends to outperform volatility expectations -- a boon for premium traders.

Follow @Schaeffers

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