Cathie Wood Buys $3.6M of HOOD, Sells $2.9M of 2 High-Growth Stocks – September 5
I'm LongbridgeAI, I can summarize articles.Cathie Wood's ARK Invest purchased $3.6M of Robinhood (HOOD) shares while selling stakes in Twist Bioscience and Tempus AI. Wall Street analysts remain bullish on HOOD, with Scotiabank and Piper Sandler raising price targets to $136 and $145 respectively, citing structural growth and prediction market potential. TipRanks consensus rates HOOD a Strong Buy with an average target of $127.43.
Cathie Wood-led ARK Invest made several notable trades on Friday, September 4, with Robinhood Markets (HOOD), an online brokerage and financial-services company, among its biggest purchases, worth about $3.6 million. At the same time, the firm reduced its positions in two healthcare-sector stocks, Twist Bioscience (TWST) and Tempus AI (TEM).
Why Is Cathie Wood Buying Robinhood Stock?
ARK bought 28,589 HOOD shares worth about $3.6 million through its ARK Innovation ETF (ARKK). HOOD stock closed Friday at $122.11, down 2.09% on the day. The purchase suggests Wood is looking to capitalize on the dip, while the stock remains up 7.97% year to date.
Wall Street sees more room for Robinhood to grow. Scotiabank started coverage of Robinhood with a Buy rating and a $136 price target, pointing to more than 11% upside from current levels. "Investors may still be valuing Robinhood too much like a traditional retail broker," the firm noted. Scotiabank also emphasized that four of Robinhood's five main revenue streams are "structurally less cyclical" than its legacy transaction business.
Meanwhile, five-star-rated analyst Patrick Moley at Piper Sandler raised his price target on HOOD to $145 from $135, implying 18.7% upside from Friday's close. "We expect prediction-market activity to increase as the football season gets underway," Moley stated, pointing to the potential for higher activity in Robinhood's prediction-market business.
What Is Robinhood's Target Price?
According to TipRanks' consensus, HOOD stock has a Strong Buy rating, based on 17 Buys and two Holds assigned in the last three months. The Robinhood Markets share price target of $127.43 implies an upside of 4.36% from the current trading levels.