Latest news with #CraigSiegenthaler
CNBC
22-07-2025
- Business
- CNBC
Brokerages are likely to slash yields on cash. These firms are still offering solid rates
Yields brokerage firms are willing to pay on idle cash are expected to cool in the second half of this year, but a few companies are still offering attractive rates for now. The Federal Reserve hasn't made any movement on interest rate cuts since last December, maintaining its target interest rate range at 4.25% to 4.5%. Central bank policymakers are widely expected to stand pat at the conclusion of their July meeting next Wednesday, too. Nevertheless, brokerages have been busy as of late, pulling back their cash sweep rates – the yields they pay on dollars that haven't yet been deployed into investments. Earlier this year, Raymond James Financial trimmed its rates by five to 25 basis points, depending on the amount of cash a client has, according to an analysis by Bank of America. Those with a relationship cash value of less than $250,000 can get 0.15% APY on their idle funds, while the largest accounts – those with $10 million or above in cash balances – can pick up 2.28%. Bank of America expects those rates to continue sliding, particularly once the Fed resumes its cuts. "Currently, the market is pricing in 2-3 cuts this year and an additional 2-3 cuts next year," wrote Craig Siegenthaler, Bank of America, in a recent report. "This implies that we will see much more activity on cash sweep rates over the next 12 months." Falling cash sweep rates encourage investors to put their idle cash to work. Further, lower yields on sweeps dampen the effect Fed rate cuts have on brokers/ net interest margin and net interest income, Siegenthaler said. Higher rates in select places Despite the the shift, a few places are still offering solid yields. For now, eToro offers an annual percentage yield of 3.9% in its High Interest Cash Program . The brokerage earlier this year cut its rate from 4.15%, Bank of America's analysis found. Vanguard's Cash Plus Account is offering a yield of 3.65%, which reflects a 25 basis point cut the firm made earlier this year. The coveted 4% APY, which has become hard to find as brokerages reduce rates, is still out there, too. Robinhood Gold members can earn 4% yields on their uninvested cash , as can clients who have accounts managed by Robinhood Strategies, the firm's investment advisory service. Be aware that brokerage firms can cut their rates at any time, though. Further, these yields aren't enough to keep up with inflation over time. Investors who want to lock in attractive yields – and who don't mind reduced access to their cash – might be better off in a certificate of deposit . Popular Direct offers a 12-month CD with a yield of 4.3%, while Bread Financial has a similar CD with a rate of 4%.
Yahoo
14-07-2025
- Business
- Yahoo
Can Robinhood Stock Hit $112 in 2025?
Earlier this month, shares of financial technology company Robinhood Markets (HOOD) crossed the triple-digit mark for the first time, hitting a fresh all-time high and turning heads across Wall Street. The rally stemmed from a calculated leap into the world of tokenized assets. Robinhood introduced tokenized stocks for its European clientele, giving them access to more than 200 U.S. securities, including exchange-traded funds (ETFs) and even private firms like SpaceX. The move signaled a larger shift in Robinhood's strategy to tap into a high-potential, rapidly growing financial frontier. Shopify Stock is a Bargain - How to Make a 3.2% One-Month Yield with SHOP Tariffs, Inflation and Other Key Things to Watch this Week Stocks Set to Open Lower as Trump Ratchets Up Tariff Threats, U.S. Inflation Data and Big Bank Earnings Awaited Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! The company's shift toward next-gen digital products has created fresh momentum, supported by a wave of price target upgrades. Notably, Bank of America analyst Craig Siegenthaler raised his forecast for trading activity related to equity and options across Robinhood's platform. The upgrade followed a sharp rise in dip-buying by retail investors during the second quarter. In this environment, Robinhood has begun to look less like a disruptor and more like a serious contender. Robinhood stands as one of the most closely watched names in the fintech space. With a market capitalization of $87 billion, it has built a product suite that stretches well beyond commission-free trading. Its offerings now span across Robinhood Crypto, Custody, Wallet, Gold, and the newly launched Gold Card, creating a comprehensive ecosystem for modern investors. Over the past 52-weeks, HOOD has delivered a jaw-dropping 346% return, a performance that has turned it into one of the standout movers in the broader market. In just the last three months alone, the stock has surged 125%, handily outperforming the S&P 500 Index's ($SPX) 17% gain during the same period. HOOD stock currently trades at a forward adjusted earnings multiple of 79 times and a sales multiple of 29 times. These figures sit well above industry averages and reflect the market's strong belief in Robinhood's pricing power and growth trajectory. Robinhood revealed its Q1 2025 earnings on April 30, delivering results that topped Wall Street's expectations. The company's robust performance stemmed from rapid product rollouts and increased engagement from its active trader base. Total net revenue jumped 50% year-over-year (YOY) to $927 million, surpassing analyst estimates of $915.7 million. Breaking it down, transaction-based revenues climbed 77% to $583 million. This was fueled by stronger revenues from options, equities, and cryptocurrencies. Net interest revenue climbed 14% to $290 million. Meanwhile, other revenues surged 54% to $54 million, primarily due to a 90% growth in Robinhood Gold subscriptions, which reached 3.2 million during the quarter. Average revenue per user rose 39% to $145, showcasing growing monetization across the platform. Adjusted EBITDA rose 90% to $470 million, reflecting improved operational leverage. Net income also saw a healthy increase of 114% YOY to $336 million. Meanwhile, EPS grew 106% from the prior-year period to $0.37, beating analyst forecasts of $0.33. The strong results were supported by new features aimed at active traders and the rapid growth in Gold subscriptions, which boosted transaction revenues and wallet share. Looking ahead, Robinhood plans to expand its financial ecosystem with upcoming launches in banking, advisory services, and international markets. Analysts forecast Q2 2025 EPS growth of 38%, reaching $0.29. For the full fiscal year 2025, EPS is expected to grow 14% to $1.25. Projections for fiscal 2026 show continued momentum with the bottom line climbing 22% to $1.53. Analysts have responded to HOOD stock's momentum with a slate of optimistic price targets. Citigroup analyst Christopher Allen has placed the stock at $100, while Barclays analyst Benjamin Budish has a $102 target. Will Nance of Goldman Sachs takes it further at $104, and KeyBanc's Alex Markgraff leads the upper tier with a target of $110. Currently, the stock carries a 'Moderate Buy' rating. Of the 21 analysts covering HOOD, 12 have a 'Strong Buy' rating, two recommend a 'Moderate Buy,' six suggest to 'Hold," and one analyst remains bearish with a 'Strong Sell' rating. The stock is already trading above its average price target. However, the Street-high target comes from Bank of America's Craig Siegenthaler, who forecasts the stock climbing 14% from current levels to $112. With growth expectations anchored in both product innovation and rising user monetization, analysts appear confident that HOOD stock's momentum is far from exhausted. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
05-06-2025
- 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
05-06-2025
- 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
04-06-2025
- 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.
