Robinhood Markets (HOOD) Stock: Director Makes $2 Million Purchase as Shares Trade Near Highs

TLDR

Table of Contents

Robinhood director Christopher Payne purchased $2 million worth of stock at $74.19 per share on Friday
HOOD stock has doubled in 2025 and gained 230% over the past 12 months
Company reported strong Q1 earnings with net income surging to $336 million and 50% revenue growth
Robinhood Gold subscribers jumped 90% year-over-year to 3.2 million users
Stock trades at 21 times sales, well above its five-year average of 7.5

Robinhood Markets stock caught attention this week as director Christopher Payne made his first insider purchase since joining the board. The $2 million buy comes as HOOD shares continue their impressive run higher.

Payne bought 26,500 shares at an average price of $74.19 each on Friday. The purchase was made through a trust, with Payne also holding 434 shares in a personal account.

The director wasn’t required to make such a large purchase so quickly. Robinhood’s guidelines require nonemployee directors to own stock worth five times their annual cash retainer within five years.

Robinhood Insider Trading Alert 🚨
$2 Million $HOOD insider buy by Director Christopher Payne! This is the first Robinhood insider buy in history 👀👀 pic.twitter.com/vcoNboGEgP
— Barchart (@Barchart) June 18, 2025

That requirement equals $250,000 based on the 2024 retainer of $50,000. Payne’s purchase far exceeds this minimum threshold.

The former DoorDash president and COO joined Robinhood’s board in December. His background includes experience scaling tech platforms during periods of rapid growth.

HOOD stock has delivered exceptional returns for investors this year. The shares have doubled in 2025 and gained roughly 230% over the past 12 months.

This performance far outpaces the broader market. The gains reflect strong fundamental performance and growing investor confidence in the platform.

Strong Financial Performance Drives Gains

Recent earnings results help explain the stock’s momentum. Robinhood reported net income of $336 million in the first quarter, more than doubling from the prior year.

Revenue grew 50% year-over-year during the same period. Net interest income now accounts for 30% of total revenue, providing a stable income stream.

Assets Under Custody reached $255 billion, nearly doubling from the previous year. This growth demonstrates increasing customer trust and engagement with the platform.

The company now serves 25.9 million funded users. Management is successfully converting these users into recurring revenue streams through premium offerings.

Robinhood Gold subscriptions hit 3.2 million, representing 90% year-over-year growth. This premium service generates higher margins and strengthens customer relationships.

CEO Vladimir Tenev told analysts the company set volume and net deposit records in Q1. CFO Jason Warnick described engagement as “incredibly strong” in the first four months of 2025.

Expansion and Innovation Drive Future Growth

The company is expanding beyond its core trading platform. Recent initiatives include the launch of Robinhood Cortex, an AI-powered market insight assistant.

Cortex delivers real-time analytics and personalized trade ideas to users. The tool is designed to boost engagement and drive conversions to Robinhood Gold subscriptions.

International expansion represents another growth avenue. Robinhood completed a $200 million acquisition of Bitstamp, securing EU crypto licenses and expanding its global footprint.

The Bitstamp deal brought over 500,000 funded accounts and 5,000 institutional clients. This marks a shift toward serving professional investors alongside retail customers.

Plans for a UK Stocks & Shares ISA launch target a market worth £70-80 billion in annual subscriptions. This expansion challenges established players like Hargreaves Lansdown and AJ Bell.

Despite the strong performance, some analysts urge caution. The stock trades at 21 times sales, well above its five-year average of 7.5.

Technical indicators suggest HOOD may be overbought in the near term. Shares trade well above both 50-day and 200-day moving averages.

Wall Street maintains a Moderate Buy rating with an average price target of $62. This suggests potential downside from current levels despite the positive long-term outlook.

The company’s board has authorized additional funds for share repurchases, demonstrating management confidence in the business.

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