Latest news with #CraigSiegenthaler
Yahoo
5 days ago
- Business
- Yahoo
Why Shares of Robinhood Are Surging This Week
Robinhood may join the S&P 500. The rebalancing is expected to occur after the market closes tomorrow. The company has executed strongly on its product road map. 10 stocks we like better than Robinhood Markets › Since last Friday, shares of the popular online brokerage Robinhood (NASDAQ: HOOD) had surged 13%, as of 12:36 p.m. ET Thursday. Investors believe the company will soon join the S&P 500 (SNPINDEX: ^GSPC). Bank of America analysts led by Craig Siegenthaler said in a report this week that Robinhood is a "prime candidate" to join the broader benchmark S&P 500 index, which includes 500 of the largest companies in the U.S. with an unadjusted market cap of at least $20.5 billion, as of January 2025. The rebalancing is expected to be announced after the market closes tomorrow. Inclusion into the S&P 500 tends to be bullish because funds that track the index will have to purchase Robinhood, likely leading to significant inflows. "The S&P 500 and Russell 1000 are the two major benchmarks for our large-cap long-only clients," the Bank of America analysts said in their note, according to Bloomberg. "When companies are added, we experience significantly higher interest from long-only portfolio managers, which are essentially now forced to cover them and make a call." Robinhood pioneered commission-free trading, which is now common practice among almost all major brokerages, and expanded access to investing for smaller, retail investors. The platform has become the go-to trading post for retail traders. At the end of April, Robinhood had close to 26 million funded customers and $232 billion in platform assets. In the first quarter of 2025, Robinhood grew earnings by 114%. I am also impressed by the company's ability to execute its product road map. Robinhood's Gold membership offers an impressive 3% cash back on its Gold card, the ability to earn competitive interest on deposit balances, and annual matches on individual retirement account contributions. Robinhood has really become a compelling one-stop shop for many banking needs, all bundled together in a sleek and easy-to-use digital platform. Currently trading at 51 times forward earnings, the stock is undoubtedly expensive, so I'd start by dollar-cost averaging or buy on future dips. Before you buy stock in Robinhood Markets, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Robinhood Markets wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Bank of America is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America. The Motley Fool has a disclosure policy. Why Shares of Robinhood Are Surging This Week was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Robinhood ‘a prime candidate' to join S&P 500, says BofA
After having hosted a quarterly update meeting with BofA's Emma Huang and the firm's Index Team in front of the S&P rebalance due on Friday, June 6 at 5:15 pm, BofA analyst Craig Siegenthaler views Robinhood (HOOD) as 'a prime candidate' for the S&P 500 with the next rebalancing. The analyst views Cheniere Energy (LNG), Flutter Entertainment (FLUT), Veeva (VEEV), Carvana (CVNA), Ares Management (ARES) and AppLovin (APP) as other top candidates for additions and views Interactive Brokers (IBKR) as 'a top migration candidate' from the S&P 400, BofA added. For Robinhood or Ares, which aren't a part of the S&P 400, the firm notes it would expect 'significant buying activity' from passive funds. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on HOOD: Disclaimer & DisclosureReport an Issue 'Don't Overlook This Deal,' Says Top Analyst as Robinhood Hits Record High Should Investors Buy Robinhood Stock (HOOD) After Its 52-Week High Surge? Mixed options sentiment in Robinhood with shares down 0.66% Robinhood Legend Enters UK Market to Capture 11M Active Traders Option traders moderately bearish in Robinhood with shares down 0.84% Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Robinhood Is a ‘Prime Candidate' for S&P 500 Addition, BofA Says
(Bloomberg) -- Robinhood Markets Inc. is a 'prime candidate' to enter the S&P 500 Index in the rebalancing set to be announced Friday, a milestone that would spur passive funds to snap up shares of the online brokerage, according to Bank of America Corp. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract The Global Struggle to Build Safer Cars At London's New Design Museum, Visitors Get Hands-On Access NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The Buffalo Architect Fighting for Women in Design The stock was in focus among investors at a meeting about potential index changes for financial stocks, analysts led by Craig Siegenthaler wrote in a note. Robinhood's stock has surged as both equity and cryptocurrency markets rally, and on Tuesday, it closed at its first record high in nearly four years. The shares were 0.3% higher on Wednesday afternoon after swinging between gains and losses. Companies that win addition to the US benchmark can see a big stock boost. Crypto-exchange operator Coinbase Global Inc. notched a 34% gain in the week its addition was announced in May, even as investors digested news of a hack and regulatory scrutiny. Passive mutual funds and exchange-traded funds that track the S&P 500 are required to reshuffle their holdings to match the gauge, and the Bank of America analysts expect 'significant buying activity from passive funds' if Robinhood joins the index. 'The S&P 500 and Russell 1000 are the two major benchmarks for our large cap long-only clients,' the analysts wrote. 'When companies are added, we experience significantly higher interest from long-only portfolio managers which are essentially now forced to cover them and make a call.' Ares Management Corp., Carvana Co. and AppLovin Corp. are among other companies that the analysts flagged as possible additions, while Interactive Brokers Group Inc. could migrate from the S&P 400. Brookfield Asset Management Ltd. is likely to be added to the S&P Total Market Index in June after it won entry to the Russell 1000, with addition to the S&P 500 coming later in the year, they wrote. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P.
Bloomberg
6 days ago
- Business
- Bloomberg
Robinhood Is a ‘Prime Candidate' for S&P 500 Addition, BofA Says
Robinhood Markets Inc. is a 'prime candidate' to enter the S&P 500 Index in the rebalancing set to be announced Friday, a milestone that would spur passive funds to snap up shares of the online brokerage, according to Bank of America Corp. The stock was in focus among investors at a meeting about potential index changes for financial stocks, analysts led by Craig Siegenthaler wrote in a note. Robinhood's stock has surged as both equity and cryptocurrency markets rally, and on Tuesday, it closed at its first record high in nearly four years.
CNBC
7 days ago
- Business
- CNBC
These stocks could join the S&P 500 this month, Bank of America says
Fund managers are gearing up for at least one more big reshuffling before their summer vacations, with the second-quarter changes to the S & P 500 expected to be unveiled at the end of this week. Craig Siegenthaler, research analyst at Bank of America, said in a Tuesday note to clients that there are several financial services stocks that could get a boost from the upcoming rebalance. "We view [ Robinhood ] as a prime candidate for the S & P 500 with the next rebalancing. … We view [ Interactive Brokers ] as a top migration candidate from the S & P 400 due to its size, as well as the S & P 500 being underweight financials and the S & P 400 being overweight financials," Siegenthaler said. HOOD YTD mountain Robinhood's stock has been a stronger performer in 2025 but is not yet part of the S & P 500. Other candidates for potential inclusion include Ares Management , Flutter Entertainment and Cheniere Energy , the note said, with Invesco a stock that could potentially get bumped down from the large-cap 500 to the mid-cap S & P 400. Even modest changes to indexes can spark billions of dollars of trading around the rebalance date, which typically comes on the third Friday of the last month in a quarter. Passive funds must swap out their old positions for new ones, and active managers often do so as well to keep their desired distance from the index in check. The S & P 500 rebalance is particularly impactful, as the SPDR S & P 500 Trust ETF (SPY) alone has $600 billion in assets. Companies being added to the index can generally expect funds like that to scoop up huge amounts of their shares in the coming weeks. "For HOOD or ARES, which aren't a part of the S & P 400, we would expect significant buying activity from passive funds (17% gross/12% net of their floats)," Siegenthaler said. The S & P 500 is not simply a ranking of the 500 largest stocks in the U.S. There are eligibility requirements around a stock's liquidity and the underlying company's profits, for example. Timing also matters, and tech firm Okta may be an example of that this cycle following its postearnings report sell-off last week. "What was a nearly $22bn company a week ago now weighs in at $18bn. At the moment, there are six S & P 400 members ahead of it and one — US Foods — that is nipping at its heels," analyst Don Bilson of Gordon Haskett said about Okta in a note to clients on Tuesday. — CNBC's Michael Bloom contributed reporting.
