The Securities and Exchange Commission (SEC) said Monday (Jan. 13) that two Robinhood broker-dealers have agreed to pay $45 million in combined civil penalties to settle charges that they failed to observe a “broad array” of regulatory requirements.Robinhood Securities agreed to pay a $33.5 million penalty, while Robinhood Financial agreed to pay a $11.5 million penalty, the SEC said in a Monday press release.In addition, both companies admitted certain findings in the order, agreed to be censured and agree ...

In Brief Robinhood has agreed to fork out $45 million to settle an investigation by the Securities and Exchange Commission over several alleged violations, reported the Wall Street Journal on Monday.The settlement is being made via two of Robinhood’s brokerage units. One of the violations relates to Robinhood’s November 2021 confirmation that it was hacked “with more than five million customer email addresses and two million customer names taken, as well as a much smaller set of more specific customer data. ...

Two Robinhood broker-dealers agreed to pay $45 million in combined penalties to settle administrative charges by the Securities and Exchange Commission that they violated more than 10 separate securities law provisions related to their brokerage operations.The violations by Robinhood Securities LLC and Robinhood Financial LLC related to failures to report suspicious trading in a timely manner, failing to implement adequate identity theft protections, and failing to adequately address unauthorized access to ...

Two Robinhood Broker-Dealers to Pay $45 Million in Combined Penalties for Violating More Than 10 Separate Securities Law ProvisionsJanuary 13, 2025 4:30 PM EST | Source: Newsfile SEC Press DigestWashington, D.C.--(Newsfile Corp. - January 13, 2025) - The Securities and Exchange Commission today announced that broker-dealers Robinhood Securities LLC and Robinhood Financial LLC (collectively, Robinhood) have agreed to pay $45 million in combined civil penalties to settle a range of SEC charges a ...

Here's a look at where Robinhood stock stands today and whether it is a potential buy.Robinhood Markets (HOOD -1.79%) has staged an impressive comeback, with its stock soaring approximately 230% to $40 per share over the past year. Founded just 11 years ago, this online brokerage reshaped the financial landscape by introducing commission-free trading for stocks, ETFs, and options, forcing traditional players to adapt.However, its journey in the public markets has been anything but smooth. After debuting in ...

Another great year for the stock market is in the books. The S&P 500 (^GSPC -1.54%), Nasdaq Composite (^IXIC -1.63%), and Dow Jones Industrial Average (^DJI -1.63%) finished the year up 23%, 29%, and 13%, respectively.Yet some stocks put those figures to shame. So, let's examine 10 of the stock market's top performers from last year, and I'll reveal the five stocks I'm eager to buy right now. 10 stocks that more than doubled in 2024In order from the highest returns to lowest, here are 10 stocks that more th ...

Company Overview - Robinhood Markets is a new-age stock brokerage and financial services company that began trading at $38 per share in the summer of 2021, peaking at $70 before falling below $7 a year later [1] - The company has experienced significant stock price volatility, surging 240% over the past year but still barely reclaiming its IPO price [2] - Robinhood has disrupted the brokerage industry by offering commission-free trades, which most brokerages have since adopted [3] Business Model and Growth - Robinhood is evolving into a comprehensive financial platform, offering individual retirement accounts (IRAs), a credit card, and a subscription service with numerous perks [4] - The company's customer base grew by 1 million year-over-year in Q3, with a 76% jump in assets under custody (AUC) as people funded their retirement accounts [4] - Robinhood has achieved GAAP profitability, with $525 million in net income over the past four quarters on $2.4 billion in revenue [5] Revenue Streams and Financials - Margin loan interest and options fees account for 39.5% of Robinhood's total revenue through nine months of 2024 [5] - Retirement accounts, while necessary for growth, are not as lucrative as margin loans and options contracts [5] - Speculation-driven revenue, such as margin loans and options, tends to dry up during market downturns, as seen when monthly active users dropped from 21.3 million in Q2 2021 to 10.8 million in Q2 2023 [6] Market Sensitivity and Valuation - Robinhood's business is cyclical and fluctuates with the broader market, making earnings less dependable during downturns [7] - The company is attempting to generate more stable revenue from its credit card and subscription service to reduce dependence on trading activity [8] - Robinhood currently trades at a forward P/E ratio of 29, with analysts expecting earnings to grow by an average of 7% annually over the next three to five years [8] Investment Considerations - The stock's valuation is steep at nearly 30 times earnings, especially for single-digit growth, suggesting investors are betting on outperformance [10] - Given the stock's volatility and hefty valuation, it may be prudent to consider it a hold and wait for a pullback [11] - For long-term investors, a dollar-cost averaging strategy could be effective in managing the stock's volatility [11]

The most recent trading session ended with Robinhood Markets, Inc. (HOOD) standing at $40.81, reflecting a +0.62% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.06%.The company's stock has climbed by 7.85% in the past month, exceeding the Finance sector's loss of 4.27% and the S&P 500's loss of 2.7%.The upcoming earnings release of Robinhood Markets, Inc. will be of great interest t ...

MENLO PARK, Calif., Jan. 07, 2025 (GLOBE NEWSWIRE) -- Today, Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) announced that it will release its fourth quarter and full year 2024 financial results on Wednesday, February 12, 2025, after market close. An earnings conference call will be held at 2:00 PM PT / 5:00 PM ET on the same day. A live webcast of the call and supporting materials will be available at investors.robinhood.com. Following the call, a replay and transcript will also be available on the s ...

Valuation and Market Position - Robinhood Markets' shares are trading at a forward P/E of 40.00X, significantly higher than the industry average of 13.95X [4] - HOOD stock is more expensive compared to peers like Charles Schwab (19.19X) and Interactive Brokers (25.38X) [6] - The stock has surged 206.3% year-to-date, outperforming Schwab (8.6%) and Interactive Brokers (115.9%) [38] Revenue Diversification and Growth Initiatives - Robinhood has reduced its reliance on transaction-based revenues from 75% in 2021 to nearly 50% in Q1 2024 [7] - The company plans to expand into Asia and launch Futures in early 2025, targeting a nine-figure revenue opportunity [11] - Robinhood aims to enhance its cryptocurrency offerings through tokenization and expansion into EU markets, with a 94.2% CAGR in crypto revenues from 2019-2023 [12][13] - The company introduced four new cryptocurrencies in November 2023, bringing the total to 19 [15] Strategic Acquisitions and Expansion - Robinhood acquired TradePMR for $300 million to enter the advisory space, competing with established players like Schwab and Fidelity [22] - The planned acquisition of Bitstamp in June 2024 will enhance Robinhood's crypto offerings with over 85 tradable assets [23] - In July 2024, Robinhood acquired Pluto Capital Inc to revolutionize the investment experience and launched a credit card and desktop trading platform [41] Financial Health and Shareholder Rewards - Robinhood reported cash and cash equivalents of $4.6 billion as of September 30, 2024 [17] - The company approved a $1 billion share buyback program in May 2024, with $903 million remaining for repurchase as of September 30, 2024 [16][26] Analyst Sentiments and Earnings Estimates - The Zacks Consensus Estimate for 2024 and 2025 earnings has been revised upward, reflecting positive analyst sentiment [18] - HOOD's earnings are expected to grow 231.2% year-over-year in 2024 and 21.8% in 2025 [28] - The stock is trading above its 50-day and 200-day moving averages, indicating strong upward momentum [35][36] Future Prospects and Market Sentiment - Robinhood's initiatives to diversify revenue streams and expand globally align with its long-term growth strategy [33] - The company's focus on cryptocurrency and potential deregulation under the new administration could further boost its market position [25][39] - Robinhood's Zacks Rank 3 (Hold) suggests it is a stable long-term investment [37]