The SEC just tore up a rule that’s been on the books for 25 years — and Robinhood is loving it.
On Wednesday, the U.S. Securities and Exchange Commission scrapped the so-called Pattern Day Trading rule. That rule required traders making four or more intraday trades within five business days to keep at least $25,000 in a margin account. Under the new framework, traders simply need enough equity to cover their actual trade exposure.
HOOD stock responded immediately, jumping over 10% to around $87.38 by mid-afternoon on Wednesday. Volume came in well below average, suggesting the move was driven by sentiment rather than heavy institutional activity.
Goldman Sachs analyst James Yaro called the change a major industry “tailwind.” He singled out Robinhood as the “primary beneficiary,” pointing to its large base of retail investors who had previously been priced out of day trading by the $25,000 threshold.
The logic is straightforward. More traders who can now legally day trade means more transaction activity on the platform. More activity means more revenue from regulatory and transaction fees.
Goldman believes the change will drive strong results in Q2 and Q3.
Even before this ruling, Robinhood was putting up solid numbers. In its most recent quarter, the company grew sales by 52%, deposits by 35%, and Gold subscribers by 60%.
The platform now has 11 individual business lines each generating over $100 million in annual revenue. It is also expanding into international markets and growing its banking and prediction market operations.
The removal of the day trading barrier could add fuel to subscription growth as well. Retail traders looking to take full advantage of the new rules may be drawn to a Gold membership for the added tools and features.
Wall Street’s current consensus on HOOD is a Strong Buy. Of analysts covering the stock over the past three months, 14 issued Buy ratings, three said Hold, and none rated it a Sell.
The average price target sits at $104.56, implying roughly 19.7% upside from current levels.
Retail sentiment also improved sharply following the announcement. Some investors described the rule change as the biggest win for individual traders since the 2021 meme stock short-squeeze wave.
The stock’s 52-week range runs from $39.21 to $153.86, putting Wednesday’s close toward the lower half of that range.
The SEC’s decision marks one of the more consequential shifts in retail trading regulation in recent years, and Robinhood sits directly in the path of the upside.
The post Goldman Sachs Names Robinhood (HOOD) Top Beneficiary of SEC Rule Change appeared first on CoinCentral.
