TLDR
- Robinhood launched Stock Tokens for EU customers, combining traditional stock investing with blockchain technology to track over 200 U.S. stocks and ETFs
- Stock Tokens trade 24/5 with minimal 0.10% FX fees, €1 minimum investment, and automatic dividend payments when eligible
- Mizuho upgraded Robinhood stock with price target raised from $80 to $99, leading to 4.6% stock price increase on Monday
- Multiple analysts issued buy ratings with consensus target price of $69, while insider Steven Quirk sold 92,257 shares for $7.8 million
- Robinhood stock has surged 137% year-to-date and 310% over the past year, reaching $86.86 in recent trading
Robinhood Markets has introduced Stock Tokens to European Union customers, creating a new way to trade U.S. stocks through blockchain technology. The tokens are derivatives that mirror prices of over 200 U.S. stocks and ETFs.
The offering includes major companies like Nvidia, Apple, and Microsoft. Users can access these tokens without owning the actual underlying stocks.
EU customers need to complete several steps before trading. They must provide tax identification numbers and pass knowledge checks. The tokens are accessible through Robinhood’s Explore tab.
Trading operates on a 24/5 schedule from Monday 2 a.m. CET to Saturday 2 a.m. CET. The minimum investment starts at just €1. Funds from token sales are available for immediate trading but require one business day for withdrawals.
The company charges a minimal 0.10% foreign exchange fee for EUR to USD conversions. Stock Tokens carry no hidden costs or commissions beyond this fee.
Blockchain Infrastructure and Security
Stock Tokens are issued through Arbitrum blockchain technology. Robinhood plans to migrate to its own Layer 2 blockchain solution. A U.S.-licensed institution holds the tokens under MiFID II regulations.
Corporate actions like stock splits and dividends affect the tokens automatically. Robinhood handles these adjustments without user intervention. Trading may pause during corporate events with user notifications.
The platform includes tokenized shares of private companies like OpenAI and SpaceX. Robinhood plans to expand to thousands of tokens by year-end.
Analyst Upgrades Drive Stock Performance
Mizuho raised its price target on Robinhood from $80 to $99 on Monday. The upgrade contributed to a 4.6% stock price increase to $86.86.
Multiple analysts have updated their ratings recently. Deutsche Bank increased its target from $70 to $85 with a buy rating. KeyCorp boosted its target from $60 to $110 with an overweight rating.
The consensus shows one sell rating, six hold ratings, and twelve buy ratings. The average target price stands at $69 across all analyst coverage.
Insider activity shows recent stock sales by company executives. Steven Quirk sold 92,257 shares at $84.96 per share for $7.8 million total. This reduced his ownership by 40.35% to 136,364 shares.
Chief Technology Officer Jeffrey Pinner sold 5,864 shares at $77.82 each. The sale totaled $456,336 and reduced his position by 28.42%.
Institutional investors control 93.27% of outstanding shares. Several funds have adjusted their positions in recent quarters.
Robinhood’s stock performance shows strong momentum across multiple timeframes. The shares have gained 137% year-to-date and 310% over the past year.
The company reported earnings of $0.37 per share in the most recent quarter. This missed analyst estimates of $0.41 per share. Revenue reached $927 million, beating the $917.12 million consensus estimate.
The stock trades at a PE ratio of 52.46 with a market cap of $81.75 billion. Analysts project full-year earnings of $1.35 per share for the current fiscal year.
Trading volume on Monday reached 20.9 million shares. This represented a 46% decline from the average daily volume of 39 million shares.
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