Altimeter Capital Management LP Buys New Position in Robinhood Markets, Inc. $HOOD

Key Points

• Altimeter Capital Management LP invested approximately $120.10 million in Robinhood Markets, acquiring about 2.89 million shares, making it the fund's 12th largest holding.
• Robinhood Markets saw significant increases in its stock rating from several analysts, with target prices raised by firms such as Barclays and Needham to as high as $120.00, reflecting strong market sentiment.
• In its latest earnings report, Robinhood reported earnings per share of $0.42, surpassing estimates, with revenues reaching $989 million, a 45% increase year-over-year.

Altimeter Capital Management LP bought a new stake in Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 2,885,714 shares of the company's stock, valued at approximately $120,103,000. Robinhood Markets comprises approximately 2.4% of Altimeter Capital Management LP's investment portfolio, making the stock its 12th largest holding. Altimeter Capital Management LP owned about 0.33% of Robinhood Markets at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of HOOD. MetLife Investment Management LLC grew its holdings in Robinhood Markets by 1.5% in the fourth quarter. MetLife Investment Management LLC now owns 11,806 shares of the company's stock valued at $440,000 after purchasing an additional 171 shares during the last quarter. The Manufacturers Life Insurance Company grew its holdings in Robinhood Markets by 11.5% in the fourth quarter. The Manufacturers Life Insurance Company now owns 44,296 shares of the company's stock valued at $1,650,000 after purchasing an additional 4,556 shares during the last quarter. Comerica Bank grew its holdings in Robinhood Markets by 167.3% in the fourth quarter. Comerica Bank now owns 11,894 shares of the company's stock valued at $443,000 after purchasing an additional 7,444 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its holdings in Robinhood Markets by 224.4% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 103,583 shares of the company's stock valued at $3,860,000 after purchasing an additional 71,652 shares during the last quarter. Finally, AXA S.A. grew its holdings in Robinhood Markets by 1,562.7% in the fourth quarter. AXA S.A. now owns 153,248 shares of the company's stock valued at $5,710,000 after purchasing an additional 144,031 shares during the last quarter. Institutional investors and hedge funds own 93.27% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms recently commented on HOOD. Piper Sandler increased their price objective on Robinhood Markets from $110.00 to $120.00 and gave the company an "overweight" rating in a research note on Thursday, July 31st. JMP Securities increased their price objective on Robinhood Markets from $125.00 to $130.00 and gave the company a "market outperform" rating in a research note on Thursday, July 31st. Compass Point increased their price objective on Robinhood Markets from $64.00 to $96.00 and gave the company a "buy" rating in a research note on Friday, June 27th. Barclays increased their price objective on Robinhood Markets from $102.00 to $120.00 and gave the company an "overweight" rating in a research note on Thursday, July 31st. Finally, Deutsche Bank Aktiengesellschaft increased their price objective on Robinhood Markets from $70.00 to $85.00 and gave the company a "buy" rating in a research note on Monday, June 9th. Eleven equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Robinhood Markets presently has an average rating of "Moderate Buy" and a consensus target price of $100.31.

Robinhood Markets Price Performance

NASDAQ:HOOD traded down $1.66 during mid-day trading on Friday, reaching $101.25. The company's stock had a trading volume of 60,005,141 shares, compared to its average volume of 34,243,404. The company's fifty day simple moving average is $103.72 and its two-hundred day simple moving average is $71.23. Robinhood Markets, Inc. has a twelve month low of $18.71 and a twelve month high of $117.70. The stock has a market cap of $89.98 billion, a P/E ratio of 51.40, a P/E/G ratio of 3.77 and a beta of 2.36.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $0.42 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.30 by $0.12. Robinhood Markets had a return on equity of 17.48% and a net margin of 50.13%.The firm had revenue of $989.00 million for the quarter, compared to analyst estimates of $893.93 million. During the same period last year, the company earned $0.21 EPS. The firm's quarterly revenue was up 45.0% on a year-over-year basis. Sell-side analysts expect that Robinhood Markets, Inc. will post 1.35 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Daniel Martin Gallagher, Jr. sold 225,000 shares of the firm's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $99.97, for a total value of $22,493,250.00. Following the transaction, the insider directly owned 591,887 shares in the company, valued at $59,170,943.39. This trade represents a 27.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Steven M. Quirk sold 92,257 shares of the firm's stock in a transaction dated Wednesday, June 25th. The stock was sold at an average price of $84.96, for a total value of $7,838,154.72. Following the completion of the transaction, the insider owned 136,364 shares in the company, valued at approximately $11,585,485.44. This trade represents a 40.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 5,767,854 shares of company stock worth $569,828,413. Corporate insiders own 14.47% of the company's stock.

Robinhood Markets Profile

Robinhood Markets, Inc operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The company offers fractional trading, recurring investments, fully-paid securities lending, access to investing on margin, cash sweep, instant withdrawals, retirement program, around-the-clock trading, and initial public offerings participation services.