TLDR
- Director Meyer Malka purchased ~$20.18M worth of HOOD stock on June 5, his third “informative buy” in recent months.
- Malka bought 250,000 shares at prices ranging from $80.07 to $81.00, boosting his holdings by 6.8%.
- CEO Vlad Tenev announced Robinhood Securities has been approved to act as an IPO underwriter.
- HOOD has 27.7 million funded customers and $377 billion in total platform assets as of May 31.
- Wall Street has a Strong Buy consensus on HOOD with an average price target of $99.38, implying ~18.6% upside.
Robinhood (HOOD) had a busy week — a major insider doubled down on the stock while the CEO dropped news that could reshape how the company makes money.
Director Meyer Malka bought approximately $20.18 million worth of HOOD stock on June 5. He picked up 250,000 shares in multiple tranches, with prices ranging from $80.07 to $81.00 per share.
This is Malka’s third “informative buy” in recent months. In total, insiders have made informative buy transactions worth $55.3 million in the last three months, giving HOOD a Positive Insider Confidence Signal on TipRanks.
The purchase increased Malka’s holdings by 6.8%. He now holds roughly 7.9 million shares directly and through trusts, worth around $662 million based on the June 9 closing price.
Year-to-date, HOOD stock is down 25.9%, so the buy comes during a rough stretch for the stock.
Robinhood Gets the Green Light on IPO Underwriting
Separately, CEO Vlad Tenev announced that Robinhood Securities — the company’s broker-dealer and clearing unit — has been approved to serve as an IPO underwriter.
This is a step up from its current role. Robinhood already lets customers buy into IPOs through its IPO Access feature, launched in 2021. Acting as an underwriter means it would now help guide private companies through the entire IPO process, not just distribute shares.
“Since IPO Access launched in 2021, we’ve watched retail go from an afterthought to a key part of how companies plan an IPO,” Tenev wrote on X. “Becoming an underwriter, and not just a selling group member, is the natural next step.”
He added: “We intend to be disruptive in this space.”
It’s a competitive market. IPO underwriting is one of Wall Street’s most lucrative businesses. This year is shaping up to be a big one for IPOs, with SpaceX set to go public. Robinhood is one of five brokers offering SpaceX IPO access to its customers.
What Analysts Think
Wall Street is broadly positive on the stock. HOOD holds a Strong Buy consensus on TipRanks, based on 15 Buy ratings and 3 Hold ratings.
The average price target sits at $99.38, which would represent roughly 18.6% upside from current levels.
As of May 31, Robinhood had 27.7 million funded customers and $377 billion in total platform assets.
HOOD stock was down 0.63% in after-hours trading following the underwriting announcement.
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