Robinhood Markets (NASDAQ:HOOD) Hits New 52-Week High - Still a Buy?

Key Points

• Robinhood Markets hit a new 52-week high, trading as high as $118.70, with significant volume of 50,792,093 shares.
• Analysts have expressed optimism, with a consensus rating of "Moderate Buy" and an average price target increase to $100.31.
• CEO Vladimir Tenev recently sold 750,000 shares, which has raised concerns about insider activity amid overall positive stock performance.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) reached a new 52-week high on Wednesday . The company traded as high as $118.70 and last traded at $118.50, with a volume of 50792093 shares trading hands. The stock had previously closed at $117.28.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Barclays upped their target price on shares of Robinhood Markets from $102.00 to $120.00 and gave the company an "overweight" rating in a research note on Thursday, July 31st. Compass Point upped their target price on shares of Robinhood Markets from $64.00 to $96.00 and gave the company a "buy" rating in a research note on Friday, June 27th. Piper Sandler upped their target price on shares of Robinhood Markets from $110.00 to $120.00 and gave the company an "overweight" rating in a research note on Thursday, July 31st. Needham & Company LLC lifted their price target on shares of Robinhood Markets from $71.00 to $120.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Finally, Redburn Atlantic reissued a "sell" rating and set a $48.00 price target (up from $40.00) on shares of Robinhood Markets in a report on Monday, June 9th. Eleven analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $100.31.

Robinhood Markets Price Performance

The company has a market capitalization of $105.31 billion, a P/E ratio of 60.15, a P/E/G ratio of 4.30 and a beta of 2.36. The stock's 50 day simple moving average is $104.71 and its two-hundred day simple moving average is $72.20.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released its earnings results on Wednesday, July 30th. The company reported $0.42 EPS for the quarter, beating the consensus estimate of $0.30 by $0.12. The company had revenue of $989.00 million during the quarter, compared to analysts' expectations of $893.93 million. Robinhood Markets had a return on equity of 17.48% and a net margin of 50.13%.The business's revenue for the quarter was up 45.0% on a year-over-year basis. During the same period last year, the firm earned $0.21 EPS. As a group, equities research analysts expect that Robinhood Markets, Inc. will post 1.35 earnings per share for the current year.

Insider Activity

In related news, CEO Vladimir Tenev sold 750,000 shares of the business's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $93.27, for a total transaction of $69,952,500.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Meyer Malka sold 1,093,288 shares of the business's stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $103.87, for a total transaction of $113,559,824.56. Following the completion of the transaction, the director directly owned 3,976,234 shares of the company's stock, valued at $413,011,425.58. This trade represents a 21.57% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 5,355,381 shares of company stock valued at $539,335,586. 19.95% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Robinhood Markets

A number of hedge funds and other institutional investors have recently made changes to their positions in HOOD. Whipplewood Advisors LLC boosted its holdings in Robinhood Markets by 564.4% during the first quarter. Whipplewood Advisors LLC now owns 598 shares of the company's stock worth $25,000 after purchasing an additional 508 shares during the last quarter. Hantz Financial Services Inc. increased its holdings in Robinhood Markets by 120.3% during the second quarter. Hantz Financial Services Inc. now owns 271 shares of the company's stock worth $25,000 after buying an additional 148 shares during the last quarter. Hemington Wealth Management increased its holdings in Robinhood Markets by 52.2% during the first quarter. Hemington Wealth Management now owns 636 shares of the company's stock worth $26,000 after buying an additional 218 shares during the last quarter. Smithfield Trust Co acquired a new position in Robinhood Markets during the second quarter worth $29,000. Finally, Wayfinding Financial LLC acquired a new position in Robinhood Markets during the first quarter worth $30,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.