Robinhood Markets (NASDAQ:HOOD) Reaches New 12-Month High - Here's What Happened

Key Points

• Robinhood Markets, Inc. shares reached a new 52-week high of $153.86 on September 23, 2023, before closing at $147.29 with significant trading volume.
• Brokerage firms have raised their price targets for Robinhood, with Bank of America increasing its target to $157.00 and maintaining a "buy" rating.
• Robinhood reported a 45% year-over-year revenue growth of $989 million for the last quarter, beating expectations and demonstrating strong financial performance.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shares reached a new 52-week high on Monday . The company traded as high as $153.86 and last traded at $147.29, with a volume of 2202789 shares traded. The stock had previously closed at $148.67.

Analyst Ratings Changes

Several brokerages recently issued reports on HOOD. Citigroup lifted their price objective on Robinhood Markets from $120.00 to $135.00 and gave the stock a "neutral" rating in a report on Tuesday, September 23rd. Bank of America boosted their price objective on shares of Robinhood Markets from $139.00 to $157.00 and gave the stock a "buy" rating in a research report on Thursday. JMP Securities raised their target price on shares of Robinhood Markets from $125.00 to $130.00 and gave the company a "market outperform" rating in a report on Thursday, July 31st. KeyCorp lifted their target price on shares of Robinhood Markets from $60.00 to $110.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 1st. Finally, Piper Sandler reiterated an "overweight" rating and issued a $140.00 price target (up from $120.00) on shares of Robinhood Markets in a research report on Tuesday, September 23rd. Twelve investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $113.59.

Robinhood Markets Stock Performance

The firm has a market capitalization of $132.49 billion, a price-to-earnings ratio of 75.72, a price-to-earnings-growth ratio of 4.13 and a beta of 2.42. The stock's fifty day moving average is $114.45 and its two-hundred day moving average is $82.87.

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

Insider Activity at Robinhood Markets

In related news, insider Daniel Martin Gallagher, Jr. sold 25,000 shares of the company's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $100.92, for a total value of $2,523,000.00. Following the sale, the insider directly owned 610,949 shares of the company's stock, valued at $61,656,973.08. This represents a 3.93% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CTO Jeffrey Tsvi Pinner sold 5,864 shares of the firm's stock in a transaction on Monday, September 22nd. The stock was sold at an average price of $124.13, for a total transaction of $727,898.32. Following the transaction, the chief technology officer directly owned 17,816 shares of the company's stock, valued at approximately $2,211,500.08. This represents a 24.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 5,650,598 shares of company stock worth $613,676,575 over the last ninety days. Company insiders own 19.95% of the company's stock.

Hedge Funds Weigh In On Robinhood Markets

A number of hedge funds have recently bought and sold shares of HOOD. Vanguard Group Inc. lifted its holdings in Robinhood Markets by 1.8% during the 2nd quarter. Vanguard Group Inc. now owns 75,612,131 shares of the company's stock worth $7,079,564,000 after buying an additional 1,371,051 shares during the last quarter. State Street Corp boosted its holdings in Robinhood Markets by 9.2% in the second quarter. State Street Corp now owns 15,870,421 shares of the company's stock worth $1,485,948,000 after purchasing an additional 1,341,204 shares during the period. Geode Capital Management LLC increased its stake in Robinhood Markets by 4.0% during the second quarter. Geode Capital Management LLC now owns 13,176,539 shares of the company's stock valued at $1,233,840,000 after purchasing an additional 507,926 shares during the last quarter. WCM Investment Management LLC raised its holdings in shares of Robinhood Markets by 3,615.7% during the second quarter. WCM Investment Management LLC now owns 11,555,160 shares of the company's stock worth $1,081,910,000 after purchasing an additional 11,244,182 shares during the period. Finally, Norges Bank bought a new position in shares of Robinhood Markets in the 2nd quarter worth about $973,122,000. 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.

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