Robinhood Markets (NASDAQ:HOOD) Shares Climb 3% - What's Next?

Key Points

• Robinhood shares rose 3% to $83.32, while trading volume was 43% below the average session volume.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $126.45; recent targets range from $100 to $160.
• Quarterly earnings of $0.60 per share beat estimates of $0.56, but revenue of $1.42 billion fell short of forecasts; revenue increased 11.5% year over year.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) rose 3% during trading on Monday. The company traded as high as $85.34 and last traded at $83.32. 15,025,427 shares traded hands during trading, a decline of 43% from the average session volume of 26,391,055 shares. The stock had previously closed at $80.91.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the company. JPMorgan Chase & Co. dropped their target price on Robinhood Markets from $115.00 to $114.00 and set a "neutral" rating on the stock in a report on Wednesday, October 28th. Piper Sandler restated an "overweight" rating and set a $145.00 price target (up from $135.00) on shares of Robinhood Markets in a report on Wednesday, September 2nd. Bank of America boosted their price objective on shares of Robinhood Markets from $140.00 to $156.00 and gave the company a "buy" rating in a research report on Monday, October 5th. Wells Fargo & Company dropped their price objective on shares of Robinhood Markets from $120.00 to $100.00 and set an "equal weight" rating on the stock in a research note on Wednesday, October 28th. Finally, Morgan Stanley increased their target price on shares of Robinhood Markets from $150.00 to $160.00 and gave the stock an "overweight" rating in a research report on Friday, October 9th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Robinhood Markets currently has an average rating of "Moderate Buy" and an average target price of $126.45.

Robinhood Markets Price Performance

The company has a debt-to-equity ratio of 0.26, a current ratio of 1.24 and a quick ratio of 1.24. The stock has a market capitalization of $74.91 billion, a price-to-earnings ratio of 38.40, a PEG ratio of 1.80 and a beta of 2.56. The stock's 50 day simple moving average is $105.97 and its 200-day simple moving average is $92.30.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The company reported $0.60 EPS for the quarter, topping the consensus estimate of $0.56 by $0.04. The company had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.44 billion. Robinhood Markets had a net margin of 39.04% and a return on equity of 21.49%. Robinhood Markets's quarterly revenue was up 11.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.61 EPS. On average, analysts expect that Robinhood Markets, Inc. will post 2.10 EPS for the current fiscal year.

Insider Transactions at Robinhood Markets

In other Robinhood Markets news, CFO Shiv Verma sold 11,472 shares of the stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $110.42, for a total transaction of $1,266,738.24. Following the transaction, the chief financial officer directly owned 56,858 shares of the company's stock, valued at $6,278,260.36. This represents a 16.79% 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 Gallagher, Jr. sold 10,000 shares of the stock in a transaction on Tuesday, November 3rd. The stock was sold at an average price of $85.05, for a total transaction of $850,500.00. Following the transaction, the insider directly owned 489,943 shares in the company, valued at $41,669,652.15. The trade was a 2.00% 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. Insiders sold a total of 1,095,820 shares of company stock valued at $128,775,816 in the last three months. 13.48% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in HOOD. EULAV Asset Management boosted its holdings in shares of Robinhood Markets by 47.9% in the 3rd quarter. EULAV Asset Management now owns 325,342 shares of the company's stock worth $36,601,000 after acquiring an additional 105,342 shares in the last quarter. Wellington Management Group LLP lifted its stake in shares of Robinhood Markets by 37.1% during the second quarter. Wellington Management Group LLP now owns 786,318 shares of the company's stock valued at $78,852,000 after acquiring an additional 212,855 shares during the period. Nykredit A S acquired a new position in shares of Robinhood Markets during the second quarter valued at $29,008,000. QRG Capital Management Inc. boosted its holdings in Robinhood Markets by 14.8% in the second quarter. QRG Capital Management Inc. now owns 180,595 shares of the company's stock valued at $18,110,000 after acquiring an additional 23,253 shares during the last quarter. Finally, NewEdge Advisors LLC boosted its holdings in Robinhood Markets by 18.3% in the second quarter. NewEdge Advisors LLC now owns 68,920 shares of the company's stock valued at $6,911,000 after acquiring an additional 10,685 shares during the last quarter. Institutional investors and hedge funds own 93.27% of the company's stock.

About Robinhood Markets

Robinhood Markets, Inc operates a digital financial services platform that gives customers access to investing and financial products through its website and mobile app. Its offerings include trading in stocks, exchange-traded funds, options and cryptocurrencies, as well as retirement accounts and cash-management services.

Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood built its business around making financial services more accessible through a mobile-first platform. The company is headquartered in Menlo Park, California, and serves customers in the United States and select international markets.

Robinhood also offers subscription-based services through Robinhood Gold, which provides eligible customers with additional account features.

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