Robinhood Markets (NASDAQ:HOOD) Shares Gap Up After Earnings Beat

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $17.85, but opened at $19.04. Robinhood Markets shares last traded at $18.18, with a volume of 10,195,175 shares trading hands.

The company reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.05 by $0.13. Robinhood Markets had a negative net margin of 29.01% and a negative return on equity of 7.87%. The business had revenue of $618.00 million during the quarter, compared to analysts' expectations of $552.74 million. During the same quarter in the prior year, the company posted ($0.57) EPS. The firm's revenue for the quarter was up 40.1% compared to the same quarter last year.

Analyst Upgrades and Downgrades

HOOD has been the subject of several research analyst reports. Piper Sandler increased their price objective on Robinhood Markets from $17.00 to $18.00 and gave the stock a "neutral" rating in a report on Thursday. Needham & Company LLC reissued a "hold" rating on shares of Robinhood Markets in a research report on Monday. JPMorgan Chase & Co. raised their target price on shares of Robinhood Markets from $10.00 to $12.00 and gave the stock an "underweight" rating in a research report on Wednesday, February 14th. TheStreet upgraded shares of Robinhood Markets from a "d+" rating to a "c-" rating in a research report on Wednesday, February 28th. Finally, Deutsche Bank Aktiengesellschaft lifted their price objective on Robinhood Markets from $12.00 to $16.00 and gave the company a "hold" rating in a research report on Tuesday, March 19th. Three research analysts have rated the stock with a sell rating, seven have issued a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, Robinhood Markets presently has an average rating of "Hold" and a consensus price target of $19.35.

Insider Buying and Selling

In other Robinhood Markets news, CFO Jason Warnick sold 5,000 shares of Robinhood Markets stock in a transaction dated Monday, February 12th. The shares were sold at an average price of $12.00, for a total value of $60,000.00. Following the completion of the transaction, the chief financial officer now directly owns 916,267 shares of the company's stock, valued at $10,995,204. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In other news, CFO Jason Warnick sold 5,000 shares of the company's stock in a transaction on Monday, February 12th. The stock was sold at an average price of $12.00, for a total transaction of $60,000.00. Following the transaction, the chief financial officer now directly owns 916,267 shares of the company's stock, valued at $10,995,204. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Vladimir Tenev sold 250,000 shares of the stock in a transaction on Monday, May 6th. The shares were sold at an average price of $17.93, for a total value of $4,482,500.00. The disclosure for this sale can be found here. Insiders have sold a total of 2,413,026 shares of company stock worth $38,927,267 in the last quarter. Corporate insiders own 20.81% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Picton Mahoney Asset Management bought a new position in Robinhood Markets in the first quarter valued at about $209,000. Scout Investments Inc. bought a new position in shares of Robinhood Markets in the 1st quarter worth approximately $18,563,000. SageView Advisory Group LLC purchased a new position in shares of Robinhood Markets in the first quarter worth approximately $84,000. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in Robinhood Markets by 33.9% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 244,627 shares of the company's stock valued at $4,924,000 after buying an additional 61,933 shares during the period. Finally, Angeles Wealth Management LLC increased its holdings in Robinhood Markets by 5.3% during the first quarter. Angeles Wealth Management LLC now owns 12,207 shares of the company's stock valued at $246,000 after buying an additional 610 shares during the last quarter. 93.27% of the stock is owned by hedge funds and other institutional investors.

Robinhood Markets Price Performance

The company's 50-day simple moving average is $17.82 and its two-hundred day simple moving average is $13.40. The firm has a market capitalization of $15.13 billion, a P/E ratio of -28.97 and a beta of 1.74.

About Robinhood Markets

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.