Robinhood Director Baiju Bhatt Sells $5 Million In Options Ahead Of Q4 Earnings

Robinhood Markets Inc. HOOD Director Baiju Bhatt sold options worth $5.03 million on Feb. 7, according to a recent U.S. Securities and Exchange Commission filing, just days before the company’s anticipated fourth-quarter earnings announcement on Wednesday.

What Happened: The transaction, involving options priced at $55.34 each, comes as Robinhood prepares to report what analysts expect will be record quarterly revenue. The company’s stock has surged more than 344% over the past year, closing at $53.34 on Tuesday.

Wall Street anticipates Robinhood will report fourth-quarter revenue of $920.41 million, nearly double the $471.0 million from the same period last year. Analysts project earnings per share of 43 cents, up significantly from 3 cents in the previous year’s quarter.

The trading platform showed mixed results in the third quarter of 2024, missing revenue estimates but demonstrating strong user growth with one million new funded accounts and 1.5 million new investment accounts. The company’s premium subscription service, Robinhood Gold, reached 2.2 million subscribers after adding 860,000 new users in the third quarter.

Why It Matters: Recent analyst actions reflect optimism about Robinhood’s prospects. Mizuho raised its price target to $65 from $60 on Feb. 7, maintaining an Outperform rating. The consensus price target among 17 analysts stands at $44.63, with recent targets suggesting further upside potential.

The company has beaten earnings estimates in eight of the last 10 quarters and has maintained profitability in five of the past six quarters, marking a significant turnaround in its financial performance.