The stock of Robinhood (HOOD) saw a 5.7% increase in the morning as investment company Compass Point initiated coverage on the stock, giving it a Buy rating with a target price of $61, indicating a potential 45% upside. This prompted a rise in the shares price. Despite the initial surge, the shares later settled at $42.01, reflecting a 4.8% increase from the previous close.

The market response to this news suggests that while the development is significant, it is not likely to alter the overall perception of the company substantially. Robinhood's shares have shown high volatility in the past year, with frequent moves exceeding 5%.

Looking back, Robinhood's stock experienced a 7.1% drop the day before due to concerns about trade tensions and geopolitical uncertainties affecting the broader market. The stock's current value of $42.01 represents a 35.6% decrease from its 52-week high of $65.28 in February 2025. Despite a 6.5% increase since the start of the year, the stock still has room to regain its previous high.

Investors who purchased Robinhood shares at the IPO in July 2021 would currently see a return of $1,207 on a $1,000 investment. This demonstrates the potential gains from investing in Robinhood.