Robinhood rises after strong May trading, underwriting nod

Robinhood shares climbed nearly 7% on Wednesday after the company reported higher platform activity for May and announced that Robinhood Securities received approval to operate as an underwriter. The stock also moved after two firms raised their price targets on the brokerage.

The May operating update showed a monthly high of 3.9 billion prediction-market contracts, a 22% increase from April. Equity trading volume rose 27% month over month and options activity increased 3%, with both hitting their second-highest monthly levels on record.

Robinhood Securities received authorization to act as an underwriter, which permits the broker to participate directly in securities offerings and related underwriting activities. The approval comes as several large companies are preparing public listings. Robinhood has previously given eligible customers access to certain private-share allocations, including SpaceX.

Goldman Sachs raised its price target on Robinhood to $108 from $105 while maintaining a Buy rating. Cantor Fitzgerald kept an Overweight rating and increased its target to $110 from $100, citing the company’s Rothera joint venture with Susquehanna International Group.

Rothera runs a prediction-market exchange that lets users trade contracts tied to real-world outcomes. Before the joint venture, Robinhood routed event contracts through third-party platforms. With a 45% stake in Rothera, Robinhood will retain a larger share of exchange-level revenues instead of sending them to external partners.

Cantor Fitzgerald projected that Rothera could lift reported revenue by about 3%, 6% and 7% for fiscal years 2026 through 2028. After adjusting for Susquehanna’s non-controlling interest, the firm estimated revenue increases of roughly 2%, 3% and 4% for those years and corresponding earnings per share gains near 2%, 3% and 3%.

Chief Executive Vlad Tenev has identified prediction markets as a priority, describing the segment on the company’s first-quarter earnings call as the fastest-growing business in Robinhood’s history and projecting it could support trillions of contracts annually.

The stock’s gain followed a year-to-date decline of more than 22% prior to Wednesday’s rise. The company’s May operating figures and the underwriting approval were cited in analyst notes that accompanied the price-target adjustments.