Robinhood Markets (NASDAQ:HOOD) Shares Gap Up - Time to Buy?

Key Points

• Robinhood Markets' stock price surged from a previous close of $101.25 to an opening of $110.63, closing at $116.28 with significant trading volume of 47 million shares.
• Research analysts have recently raised their target prices for Robinhood, with Goldman Sachs setting a new target at $104 and Needham & Company at $120, reflecting strong buy ratings.
• The company reported a 45% year-over-year revenue increase, achieving $989 million in revenue for the recent quarter, and exceeding earnings expectations with $0.42 per share.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s stock price gapped up before the market opened on Monday . The stock had previously closed at $101.25, but opened at $110.63. Robinhood Markets shares last traded at $116.28, with a volume of 47,093,229 shares traded.

Analysts Set New Price Targets

Several research analysts have recently commented on the stock. The Goldman Sachs Group raised their target price on shares of Robinhood Markets from $91.00 to $104.00 and gave the stock a "buy" rating in a report on Monday, July 7th. Needham & Company LLC raised their target price on shares of Robinhood Markets from $71.00 to $120.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Piper Sandler raised their target price on shares of Robinhood Markets from $110.00 to $120.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Cantor Fitzgerald raised their target price on shares of Robinhood Markets from $100.00 to $118.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Finally, Deutsche Bank Aktiengesellschaft raised their target price on shares of Robinhood Markets from $70.00 to $85.00 and gave the stock a "buy" rating in a report on Monday, June 9th. Eleven research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $100.31.

Robinhood Markets Stock Up 13.9%

The business's 50 day simple moving average is $103.72 and its two-hundred day simple moving average is $71.42. The stock has a market cap of $102.45 billion, a P/E ratio of 58.59, a PEG ratio of 3.71 and a beta of 2.36.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported $0.42 earnings per share for the quarter, topping analysts' consensus estimates of $0.30 by $0.12. The firm had revenue of $989.00 million for 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 17.48%. The company's revenue was up 45.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.21 earnings per share. As a group, research analysts forecast that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Insider Buying and Selling at Robinhood Markets

In related news, Director Baiju Bhatt sold 418,338 shares of the business's stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $109.39, for a total value of $45,761,993.82. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Daniel Martin Gallagher, Jr. sold 25,000 shares of the business's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $100.92, for a total transaction of $2,523,000.00. Following the completion of the sale, the insider directly owned 610,949 shares in the company, valued at approximately $61,656,973.08. This represents a 3.93% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 5,767,854 shares of company stock worth $569,828,413. Company insiders own 14.47% of the company's stock.

Institutional Trading of Robinhood Markets

Institutional investors have recently modified their holdings of the business. Whipplewood Advisors LLC grew its stake in shares of Robinhood Markets by 564.4% in 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. lifted its holdings in Robinhood Markets by 120.3% in the second quarter. Hantz Financial Services Inc. now owns 271 shares of the company's stock valued at $25,000 after buying an additional 148 shares during the period. Hemington Wealth Management lifted its holdings in Robinhood Markets by 52.2% in the first quarter. Hemington Wealth Management now owns 636 shares of the company's stock valued at $26,000 after buying an additional 218 shares during the period. Smithfield Trust Co acquired a new position in Robinhood Markets in the second quarter valued at $29,000. Finally, Wayfinding Financial LLC acquired a new position in Robinhood Markets in the first quarter valued at $30,000. Institutional investors own 93.27% of the company's stock.

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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