Robinhood Markets, Inc. (NASDAQ:HOOD) shares traded lower on Monday, extending losses of more than 10% over the past month.
• HOOD stock is struggling to find support. Stay ahead of the curve here.
What To Know: On Nov. 5, the company reported earnings per share of 61 cents, beating the consensus estimate of 48 cents. In addition, it reported sales of $1.27 billion, beating the consensus estimate of $1.19 billion.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- Mizuho analyst Dan Dolev maintained an Outperform rating on Robinhood and raised the price target from $145 to $172.
- Keefe, Bruyette & Woods analyst Kyle Voigt maintained a Market Perform rating on Robinhood and raised the price target from $121 to $135.
- Cantor Fitzgerald analyst Brett Knoblauch maintained an Overweight rating on Robinhood and raised the price target from $130 to $155.
- Barclays analyst Benjamin Budish maintained an Overweight rating on Robinhood and raised the price target from $162 to $168.
The consensus price target for Robinhood is $123.35, with the highest price target at $180 and the lowest price target at $47.
HOOD Analysis: Robinhood stock is trading within its 52-week range of $29.66 to $153.85. The recent decline places the stock approximately 14.3% below its 50-day moving average of $132.80, indicating a short-term bearish trend. Despite this pullback, Robinhood has demonstrated impressive year-to-date performance, up 188.7%, reflecting strong investor sentiment over the past months.
The current RSI of 42.00 suggests that the stock is nearing oversold territory, which could indicate a potential rebound if buying interest returns. The calculated support level is positioned at $112.42, which aligns closely with the current price, providing a critical area for traders to watch. If the stock fails to hold this support, it may test the 200-day moving average at $85.93, which is significantly above the current price.
On the resistance side, the stock faces a hurdle at $123.44, just below the previous close of $122.50. This resistance level, along with the psychological barrier of $125, could serve as a significant challenge for any upward momentum in the near term. The proximity of the current price to both support and resistance levels indicates a tight trading range, which may lead to increased volatility as traders react to price movements.
In comparison to its peers, Robinhood’s market capitalization of $110.15 billion positions it as a mid-sized player among companies such as Coinbase and Charles Schwab, which have market caps of $76.58 billion and $167.73 billion, respectively. This relative positioning may influence investor sentiment and trading strategies as market dynamics evolve.
The current setup suggests that traders should be particularly attentive to the support level at $112.42. A decisive move below this level could trigger further selling pressure, while a bounce from this area could provide an opportunity for a short-term recovery toward the resistance at $123.44.
HOOD Price Action: Robinhood shares closed down 10.73% at $115.97, according to data from Benzinga Pro.
See Also:
• Why Is HIVE Digital Technologies Stock Soaring Monday?
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