Robinhood Markets, Inc. $HOOD Shares Acquired by Verde Capital Management

Key Points

• Verde Capital Management boosted its Robinhood stake by 697.6% in the first quarter, ending with 38,755 shares valued at about $2.69 million.
• Robinhood recently reported Q1 earnings of $0.38 per share, slightly below estimates, on $1.07 billion in revenue, which was up 15.1% year over year.
• The company announced a $2 billion convertible senior notes offering, planning to use about $300 million for share buybacks, but the market is worried about potential dilution.

Verde Capital Management increased its position in Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) by 697.6% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 38,755 shares of the company's stock after purchasing an additional 33,896 shares during the quarter. Verde Capital Management's holdings in Robinhood Markets were worth $2,686,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also added to or reduced their stakes in the company. State Street Corp lifted its holdings in Robinhood Markets by 103.2% in the 3rd quarter. State Street Corp now owns 32,246,155 shares of the company's stock worth $4,617,004,000 after buying an additional 16,375,734 shares in the last quarter. Norges Bank acquired a new stake in shares of Robinhood Markets during the fourth quarter valued at about $1,202,160,000. Corient Private Wealth LLC increased its position in shares of Robinhood Markets by 5,221.4% during the fourth quarter. Corient Private Wealth LLC now owns 2,559,848 shares of the company's stock worth $289,519,000 after acquiring an additional 2,511,743 shares during the last quarter. Jennison Associates LLC lifted its stake in shares of Robinhood Markets by 95.7% in the fourth quarter. Jennison Associates LLC now owns 4,412,036 shares of the company's stock worth $499,001,000 after acquiring an additional 2,157,372 shares in the last quarter. Finally, Morgan Stanley lifted its stake in shares of Robinhood Markets by 23.9% in the fourth quarter. Morgan Stanley now owns 10,683,776 shares of the company's stock worth $1,208,335,000 after acquiring an additional 2,061,832 shares in the last quarter. 93.27% of the stock is owned by institutional investors and hedge funds.

Robinhood Markets Price Performance

Shares of HOOD opened at $105.71 on Tuesday. The business's fifty day moving average price is $84.14 and its 200 day moving average price is $91.12. Robinhood Markets, Inc. has a 12-month low of $63.51 and a 12-month high of $153.86. The stock has a market capitalization of $95.19 billion, a PE ratio of 51.07, a price-to-earnings-growth ratio of 2.54 and a beta of 2.35.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released its earnings results on Tuesday, April 28th. The company reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.01). The business had revenue of $1.07 billion for 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 firm's revenue for the quarter was up 15.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.37 EPS. As a group, research analysts anticipate that Robinhood Markets, Inc. will post 1.81 earnings per share for the current fiscal year.

Key Robinhood Markets News

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

• Positive Sentiment: Robinhood said it plans to use about $300 million of the proceeds to buy back stock, and it also intends to use capped calls to help offset dilution from the convertible notes. Robinhood Announces Private Offering of $2.0 Billion of Convertible Senior Notes Due 2029
• Positive Sentiment: Management framed the financing as an opportunistic capital raise that gives Robinhood more flexibility to invest in growth initiatives and strengthen its balance sheet. Robinhood to Offer 2 Billion of Convertible Senior Notes
• Neutral Sentiment: Robinhood’s broader push into tokenized assets and crypto-related products keeps the company in the middle of a fast-growing but still developing market, which could support long-term growth but does not appear to be the main driver of today’s move. Wall Street Wants To Tokenize Everything—But It First Needs The CLARITY Act
• Negative Sentiment: Shares are falling as investors worry the new convertible debt could dilute existing holders and signal that Robinhood is choosing financing over a cleaner equity-friendly capital plan. Robinhood Markets proposes 2B convertible debt offering
• Negative Sentiment: Multiple reports say the stock moved lower after the announcement, suggesting the market is focusing on the dilution risk and the size of the financing rather than the buyback offset. Robinhood's multibillion-dollar move sends stock lower

Analyst Ratings Changes

A number of brokerages have weighed in on HOOD. Argus raised their price objective on Robinhood Markets from $90.00 to $110.00 and gave the company a "buy" rating in a research note on Wednesday, June 17th. The Goldman Sachs Group upped their target price on Robinhood Markets from $95.00 to $105.00 and gave the company a "buy" rating in a research report on Thursday, June 4th. Barclays decreased their price target on shares of Robinhood Markets from $89.00 to $82.00 and set an "overweight" rating for the company in a research report on Wednesday, April 29th. Citigroup restated a "market outperform" rating on shares of Robinhood Markets in a research note on Thursday, May 28th. Finally, Jefferies Financial Group cut their price target on shares of Robinhood Markets from $88.00 to $84.00 and set a "buy" rating on the stock in a report on Monday, April 6th. Eighteen investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Robinhood Markets presently has a consensus rating of "Moderate Buy" and an average price target of $112.36.

Insiders Place Their Bets

In other news, CEO Vladimir Tenev sold 375,000 shares of Robinhood Markets stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $69.83, for a total value of $26,186,250.00. Following the completion of the transaction, the chief executive officer directly owned 375,000 shares of the company's stock, valued at approximately $26,186,250. The trade was a 50.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Baiju Bhatt sold 67,422 shares of the business's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $75.38, for a total transaction of $5,082,270.36. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders acquired 680,000 shares of company stock worth $55,306,560 and sold 633,484 shares worth $47,542,923. Corporate insiders own 19.95% of the company's stock.

Robinhood Markets Profile

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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