Robinhood Markets (HOOD:NSD) has agreed to pay a penalty of $10.2 million for operational deficiencies that led to platform disruptions in March 2020, depriving users of trading opportunities during pandemic-driven market volatility. State regulators from Alabama, Colorado, California, Delaware, New Jersey, South Dakota, and Texas concluded as part of a multi-state investigation that Robinhood failed to provide accurate margin and risk-related information, failed to conduct proper due diligence prior to approving some option accounts, and provided inadequate customer support.
The company paid a substantial $70 million fine to the Financial Industry Regulatory Authority in 2021, which claimed that Robinhood’s compliance had lapsed during the outage in March 2020 and that it had been misleading customers since 2016. Moreover, the SEC is presently conducting an investigation into the company’s cryptocurrency operations.
Robinhood Stock Forecast:
Despite the legal issues, the Stock Target Advisor’s consensus assessment of Robinhood stock forecast is Buy, based on three Buy ratings, five Hold ratings, and three Sell ratings.
The average price target of $12.26 indicates a potential upside of 22.5% compared to current levels. When making investment decisions, however, investors should consider the ongoing regulatory scrutiny and operational challenges faced by Robinhood.
Company Profile:
Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.
