Altshuler Shaham Ltd Invests $56.04 Million in Robinhood Markets, Inc. $HOOD

Key Points

• Altshuler Shaham Ltd disclosed a new fourth-quarter position in Robinhood Markets, buying 495,500 shares worth about $56.0 million. The stake represented roughly 0.06% of the company.
• Robinhood’s latest earnings came in slightly below expectations, with EPS of $0.38 versus the $0.39 estimate and revenue of $1.07 billion versus the $1.14 billion forecast. Even so, revenue still rose 15.1% year over year.
• The stock has also been buoyed by recent updates showing record June trading activity, a planned 10% workforce reduction aimed at improving efficiency, and a series of upbeat analyst moves, including price-target increases.

Altshuler Shaham Ltd purchased a new position in shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 495,500 shares of the company's stock, valued at approximately $56,041,000. Altshuler Shaham Ltd owned approximately 0.06% of Robinhood Markets at the end of the most recent quarter.

A number of other hedge funds have also made changes to their positions in the stock. 9823 Capital L.P. acquired a new stake in shares of Robinhood Markets during the fourth quarter worth approximately $226,000. Guggenheim Capital LLC grew its position in shares of Robinhood Markets by 74.6% during the fourth quarter. Guggenheim Capital LLC now owns 22,384 shares of the company's stock worth $2,532,000 after buying an additional 9,561 shares in the last quarter. Integrated Advisors Network LLC grew its position in shares of Robinhood Markets by 5.7% during the fourth quarter. Integrated Advisors Network LLC now owns 2,494 shares of the company's stock worth $282,000 after buying an additional 135 shares in the last quarter. DV Equities LLC bought a new position in Robinhood Markets during the fourth quarter worth $126,000. Finally, JAT Capital Mgmt LP boosted its holdings in Robinhood Markets by 820.4% in the fourth quarter. JAT Capital Mgmt LP now owns 110,443 shares of the company's stock worth $12,491,000 after purchasing an additional 98,443 shares during the period. Institutional investors and hedge funds own 93.27% of the company's stock.

Robinhood Markets Stock Performance

HOOD stock opened at $105.20 on Thursday. The stock has a market capitalization of $94.73 billion, a price-to-earnings ratio of 50.82, a PEG ratio of 2.42 and a beta of 2.35. Robinhood Markets, Inc. has a 1 year low of $63.51 and a 1 year high of $153.86. The stock's fifty day moving average is $81.94 and its two-hundred day moving average is $91.51.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its earnings results on Tuesday, April 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.39 by ($0.01). The company had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.14 billion. Robinhood Markets had a net margin of 41.12% and a return on equity of 21.39%. The business's quarterly revenue was up 15.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.37 earnings per share. As a group, analysts predict that Robinhood Markets, Inc. will post 1.83 EPS for the current fiscal year.

Robinhood Markets News Roundup

Here are the key news stories impacting Robinhood Markets this week:

• Positive Sentiment: Robinhood announced a planned 10% workforce reduction, which investors are interpreting as a cost-cutting move that could improve efficiency and margins. The company said the restructuring is aimed at flattening management and speeding product launches. WSJ: Robinhood Markets to Cut 10% of Workforce in Restructuring
• Positive Sentiment: Management also said trading activity is running at record levels in June, signaling strong platform engagement and potentially better near-term revenue trends. Motley Fool: Robinhood Jumps After Announcing 10% Workforce Reduction, Record June Volumes
• Positive Sentiment: Wall Street responded favorably, with Argus raising its price target on HOOD to $110 from $90 and reiterating a buy rating, reinforcing confidence in the company’s growth outlook. Yahoo Finance: Robinhood Stock Is Soaring A Day After Big Layoffs. This Is Why.
• Positive Sentiment: Multiple reports say analysts remain broadly bullish on Robinhood despite the layoffs, suggesting investors see the company’s growth story as intact. Invezz: Robinhood stock gains as analysts back growth despite layoffs
• Neutral Sentiment: There was also insider selling by CFO Shiv Verma and director Baiju Bhatt, but both sales were disclosed as pre-arranged 10b5-1 transactions, so the market may treat them as routine rather than a major warning sign. SEC filing: Shiv Verma sale SEC filing: Baiju Bhatt sale

Insider Buying and Selling at Robinhood Markets

In related news, Director Meyer Malka acquired 250,000 shares of the business's stock in a transaction that occurred on Friday, June 5th. The shares were acquired at an average cost of $80.74 per share, for a total transaction of $20,185,000.00. Following the completion of the purchase, the director directly owned 3,924,427 shares in the company, valued at $316,858,235.98. This trade represents a 6.80% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CFO Shiv Verma sold 3,984 shares of Robinhood Markets stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $98.84, for a total transaction of $393,778.56. Following the sale, the chief financial officer owned 59,927 shares in the company, valued at approximately $5,923,184.68. This represents a 6.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders purchased 680,000 shares of company stock valued at $55,306,560 and sold 633,484 shares valued at $47,542,923. Company insiders own 14.47% of the company's stock.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. Needham & Company LLC increased their target price on shares of Robinhood Markets from $85.00 to $97.00 and gave the stock a "buy" rating in a report on Thursday, June 11th. Loop Capital set a $110.00 price target on shares of Robinhood Markets in a report on Wednesday. New Street Research set a $122.00 price objective on shares of Robinhood Markets in a research report on Thursday, March 5th. Barclays dropped their price objective on shares of Robinhood Markets from $89.00 to $82.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 29th. Finally, Truist Financial dropped their price objective on shares of Robinhood Markets from $120.00 to $100.00 and set a "buy" rating on the stock in a research note on Monday, April 13th. Eighteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, Robinhood Markets currently has a consensus rating of "Moderate Buy" and a consensus target price of $112.36.

About Robinhood Markets

Robinhood Markets, Inc NASDAQ: HOOD is a U.S.-based financial services company best known for its mobile-first brokerage platform that aims to "democratize finance for all." Founded in 2013 by Vladimir Tenev and Baiju Bhatt and headquartered in Menlo Park, California, the company built early traction by offering commission-free trading and a simplified user experience that attracted a large base of retail investors.

Robinhood's core products and services include a mobile app and web platform for trading U.S.

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