Saudi Central Bank Raises Position in Robinhood Markets, Inc. $HOOD

Key Points

• Saudi Central Bank increased its Robinhood stake by 89.9% in the second quarter, bringing its holdings to 52,539 shares valued at approximately $5.27 million. Institutional investors collectively own 93.27% of HOOD.
• Robinhood reported strong quarterly results, with adjusted EPS of $0.62 versus the $0.44 consensus estimate and revenue of $1.31 billion, up 32.5% year over year.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $122.67, while event contracts, crypto initiatives, and Trust Accounts are highlighted as growth drivers.

Saudi Central Bank raised its position in shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) by 89.9% during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 52,539 shares of the company's stock after acquiring an additional 24,866 shares during the quarter. Saudi Central Bank's holdings in Robinhood Markets were worth $5,269,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the company. CYBER HORNET ETFs LLC boosted its position in shares of Robinhood Markets by 527.8% during the fourth quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company's stock valued at $26,000 after purchasing an additional 190 shares in the last quarter. Elyxium Wealth LLC bought a new position in Robinhood Markets in the fourth quarter worth $27,000. MV Capital Management Inc. bought a new position in Robinhood Markets in the fourth quarter worth $27,000. C M Bidwell & Associates Ltd. purchased a new position in Robinhood Markets during the second quarter valued at $27,000. Finally, Swiss RE Ltd. purchased a new position in Robinhood Markets during the fourth quarter valued at $27,000. Hedge funds and other institutional investors own 93.27% of the company's stock.

Robinhood Markets News Summary

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

• Positive Sentiment: Analyst sentiment remains supportive. Scotiabank initiated coverage with a bullish view, while Piper Sandler raised its price target to $145 and expects football-related event contracts to increase activity. Robinhood generated $156 million from event contracts in the second quarter. Robinhood Stock Jumps After Wave of Analysts Upgrade
• Positive Sentiment: Robinhood Chain and crypto activity are emerging growth drivers. The new blockchain reportedly generated about $3.8 million in fees on September 1, while the company now has 13 business lines with more than $100 million in annualized revenue. Deutsche Bank also sees potential upside from Robinhood’s latest crypto initiatives. Robinhood Now Runs 13 Revenue Lines Above $100 Million a Year
• Positive Sentiment: CEO Vlad Tenev said Robinhood’s newly launched Trust Accounts have attracted more than $150 million since August, suggesting early customer demand for the offering. Robinhood Trust Accounts Now Have Over $150 Million

Robinhood Markets Stock Performance

NASDAQ HOOD opened at $122.11 on Monday. Robinhood Markets, Inc. has a 12 month low of $63.51 and a 12 month high of $153.86. The stock has a market cap of $109.79 billion, a P/E ratio of 53.79, a P/E/G ratio of 2.50 and a beta of 2.34. The stock's fifty day moving average price is $102.73 and its 200-day moving average price is $88.34. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.23.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.18. The firm had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.29 billion. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%.Robinhood Markets's quarterly revenue was up 32.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.42 EPS. As a group, equities analysts forecast that Robinhood Markets, Inc. will post 2.09 EPS for the current fiscal year.

Insider Activity at Robinhood Markets

In other news, CFO Shiv Verma sold 3,982 shares of the stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $95.07, for a total transaction of $378,568.74. Following the sale, the chief financial officer owned 51,963 shares in the company, valued at $4,940,122.41. This represents a 7.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $122.43, for a total transaction of $1,224,300.00. Following the sale, the insider directly owned 509,943 shares of the company's stock, valued at $62,432,321.49. This trade represents a 1.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 626,283 shares of company stock worth $69,070,083 in the last ninety days. 13.48% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Loop Capital set a $105.00 target price on shares of Robinhood Markets in a research report on Thursday, July 30th. Wall Street Zen raised shares of Robinhood Markets from a "strong sell" rating to a "sell" rating in a research report on Sunday, July 12th. Piper Sandler reissued an "overweight" rating and set a $145.00 price objective (up from $135.00) on shares of Robinhood Markets in a research note on Wednesday. Citizens Jmp restated a "market outperform" rating and issued a $155.00 price objective on shares of Robinhood Markets in a report on Thursday, July 30th. Finally, Barclays decreased their target price on shares of Robinhood Markets from $122.00 to $105.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $122.67.

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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