Renowned ARK Investment, under the leadership of Cathie Wood, has seized the opportunity to grab 562,818 shares of Robinhood (NASDAQ:HOOD) across three of its ETFs. This strategic purchase was made on Thursday, the same day Robinhood announced its $95 million acquisition of X1 Inc. The bulk of ARK’s new holdings, amounting to 436,565 shares, were placed in the ARK Innovation ETF (NYSEARCA:ARKK).
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Robinhood’s acquisition of X1 Inc. is a bold stride in its mission to democratize finance and investment. X1 Inc., known for its no-fee credit card with rewards, aligns perfectly with Robinhood’s customer-centric objectives. The CEO and co-founder of Robinhood, Vlad Tenev, expressed that this acquisition brings them closer to meeting their customers’ critical financial needs, enabling the company to extend its services to include credit access.
However, Wall Street doesn’t seem to be as enthusiastic about HOOD stock as Cathie Wood is. Indeed, analysts have a Hold consensus rating based on two Buys, five Holds, and three Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $11.60 per share implies 22.69% upside potential.
