Robinhood Markets (NASDAQ:HOOD) Announces Earnings Results, Beats Expectations By $0.12 EPS

Key Points

• Robinhood Markets reported a quarterly earnings per share (EPS) of $0.42, surpassing estimates by $0.12, with revenues reaching $989 million, well above the expected $893.93 million.
• The company's stock has seen a 2.9% decline, yet it has a market capitalization of $91.25 billion and a consensus price target of $96.29, indicating a Moderate Buy rating among analysts.
• Insiders sold a total of 3,026,690 shares over the last quarter, representing a significant portion of their holdings, which includes a 2.97% decrease from one insider alone.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.30 by $0.12, Zacks reports. The business had revenue of $989.00 million during the quarter, compared to analysts' expectations of $893.93 million. Robinhood Markets had a net margin of 50.13% and a return on equity of 17.69%. The business's revenue was up 45.0% on a year-over-year basis. During the same period last year, the firm posted $0.21 earnings per share.

Robinhood Markets Stock Down 3.1%

NASDAQ HOOD traded down $3.15 during trading on Friday, hitting $99.90. The company's stock had a trading volume of 76,566,177 shares, compared to its average volume of 43,469,824. Robinhood Markets has a 52 week low of $13.98 and a 52 week high of $113.44. The firm has a market cap of $88.46 billion, a P/E ratio of 50.71, a price-to-earnings-growth ratio of 5.03 and a beta of 2.36. The firm has a 50 day moving average price of $86.92 and a 200 day moving average price of $62.00.

Insiders Place Their Bets

In other news, CEO Vladimir Tenev sold 385,485 shares of the business's stock in a transaction dated Wednesday, July 16th. The shares were sold at an average price of $101.90, for a total transaction of $39,280,921.50. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Baiju Bhatt sold 418,338 shares of the company's stock in a transaction dated Thursday, July 24th. The shares were sold at an average price of $101.88, for a total transaction of $42,620,275.44. Following the transaction, the director directly owned 10,518 shares of the company's stock, valued at $1,071,573.84. This represents a 97.55% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 3,026,690 shares of company stock valued at $257,160,102 in the last 90 days. 14.47% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Robinhood Markets

An institutional investor recently raised its position in Robinhood Markets stock. Empowered Funds LLC boosted its holdings in Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) by 46.7% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 49,870 shares of the company's stock after acquiring an additional 15,885 shares during the quarter. Empowered Funds LLC's holdings in Robinhood Markets were worth $2,076,000 at the end of the most recent quarter. Institutional investors and hedge funds own 93.27% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. JMP Securities raised their price objective on shares of Robinhood Markets from $125.00 to $130.00 and gave the company a "market outperform" rating in a research report on Thursday. Piper Sandler boosted their target price on Robinhood Markets from $110.00 to $120.00 and gave the stock an "overweight" rating in a research report on Thursday. Keefe, Bruyette & Woods lifted their price target on Robinhood Markets from $89.00 to $106.00 and gave the stock a "market perform" rating in a research note on Thursday. JPMorgan Chase & Co. raised their target price on shares of Robinhood Markets from $44.00 to $47.00 and gave the stock a "neutral" rating in a report on Thursday, May 1st. Finally, Cantor Fitzgerald lifted their price objective on shares of Robinhood Markets from $100.00 to $118.00 and gave the stock an "overweight" rating in a research report on Thursday. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and twelve have assigned a buy rating to the stock. According to data from MarketBeat.com, Robinhood Markets currently has an average rating of "Moderate Buy" and a consensus price target of $96.29.

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.