Robinhood Markets Inc (NASDAQ:HOOD) shares are jumping during Thursday’s pre-market session as the SEC approved a major overhaul to day-trading restrictions that removes a long-standing barrier for smaller, active traders.
Robinhood is also getting a sentiment lift from the idea that prediction markets could become a major new product line, with bulls pointing to potential $1 trillion prediction market volumes over time.
- Robinhood Markets stock is gaining positive traction. Why is HOOD stock trading higher?
SEC Clears End Of $25,000 PDT Barrier
The SEC this week approved FINRA-proposed changes that eliminate the Pattern Day Trader rule, including removing the $25,000 minimum equity requirement and the pattern day trader definition.
The old framework also limited traders with under $25,000 in margin accounts to no more than four day trades within five business days, a cap that is now being removed under the new approach.
The new framework shifts margin standards toward real-time risk exposure and applies to all investors, not just smaller accounts. The SEC also said public feedback overwhelmingly supported the changes, reinforcing the odds the rule shift sticks.
Brokerages Stand To Benefit From Retail Trading Freedom
Robinhood’s Chief Brokerage Officer Steve Quirk called the update a “significant step forward in empowering retail investors,” and Webull’s group president Anthony Denier said the reforms are “long overdue.” The change could lift engagement and transaction activity at retail brokerages, which matters for trading-linked revenue streams like order flow and brokerage services.
Webull’s move provides a benchmark for Robinhood because both platforms monetize high-frequency retail behavior, and the rule change directly impacts sub-$25,000 accounts that previously had to ration day trades.
That sympathy angle has been part of the same trade as stocks climbed Tuesday into Wednesday on the dual narrative of deregulated day trading and higher-margin prediction-market expansion.
Short-Term Momentum Improves, But Trend Repair Is Incomplete
Robinhood is rebounding off its March swing low but still sits well below the highs set in October 2025, keeping the longer-term recovery uneven. At $89.75, the stock is trading 25.8% above its 20-day simple moving average (SMA) and 6.3% below its 100-day SMA, a mix that points to strong short-term momentum but a still-challenged intermediate trend.
The moving average convergence divergence (MACD), a trend/momentum measure, is above its signal line with a positive histogram, which leans toward improving upside momentum after the February drawdown. That setup often shows buyers are gaining control, even if the longer-term trend hasn’t fully reset.
The stock is up 114.76% over the past 12 months, which shows the bigger-picture tape has been powerful despite the pullback from the October 2025 peak. With the 50-day SMA still below the 200-day SMA after the death cross in February, traders typically look for follow-through strength before treating rallies as fully “trend repaired.”
- Key Resistance: $101.00 — a prior ceiling where rallies have recently stalled.
- Key Support: $89.50 — near the current area where buyers are trying to hold the bounce.
Robinhood Earnings Due April 28 As Growth Expectations Rise
The countdown is on: Robinhood is set to report earnings on April 28.
- EPS Estimate: 44 cents (Up from 37 cents YoY)
- Revenue Estimate: $1.19 Billion (Up from 93 cents Billion YoY)
- Valuation: P/E of 42.6x (Indicates premium valuation relative to peers)
Analysts Stay Bullish On Robinhood Despite Mixed Target Changes
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $118.06. Recent analyst moves include:
- Bernstein: Outperform (Maintains Target to $130.00) (April 14)
- Truist Securities: Buy (Lowers Target to $100.00) (April 13)
- Citizens: Market Outperform (Lowers Target to $155.00) (April 10)
HOOD Shares Rise Thursday Morning
HOOD Stock Price Activity: Robinhood Markets shares were up 3.33% at $90.23 during premarket trading on Thursday, according to Benzinga Pro data.
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