Robinhood Markets (NASDAQ:HOOD) Shares Up 1.2% - Here's Why

Key Points

• Robinhood Markets Inc. (NASDAQ:HOOD) saw a stock increase of 1.2%, trading at $140.68, though the trading volume fell to 28 million shares, a 33% decrease from average sessions.
• Analysts are optimistic about Robinhood, with price targets raised by several brokerages; JMP Securities set a new target of $170.00 and a "market outperform" rating, while Weiss Ratings maintains a "hold" rating.
• In insider trading news, Director Baiju Bhatt sold 418,338 shares, totaling nearly $50 million, amid a trend where company insiders sold over 5.5 million shares valued at approximately $607 million.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shot up 1.2% on Monday . The stock traded as high as $146.56 and last traded at $140.68. 28,036,180 shares changed hands during trading, a decline of 33% from the average session volume of 41,726,238 shares. The stock had previously closed at $138.96.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on HOOD. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Robinhood Markets in a report on Wednesday, October 8th. JMP Securities increased their price objective on Robinhood Markets from $130.00 to $170.00 and gave the stock a "market outperform" rating in a research report on Thursday. Keefe, Bruyette & Woods increased their price objective on Robinhood Markets from $89.00 to $106.00 and gave the stock a "market perform" rating in a research report on Thursday, July 31st. KeyCorp increased their price objective on Robinhood Markets from $60.00 to $110.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 1st. Finally, Needham & Company LLC increased their price objective on Robinhood Markets from $120.00 to $145.00 and gave the stock a "buy" rating in a research report on Tuesday, September 30th. Twelve research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Robinhood Markets has a consensus rating of "Moderate Buy" and an average target price of $118.94.

Robinhood Markets Stock Up 1.2%

The firm has a market cap of $125.02 billion, a price-to-earnings ratio of 71.41, a price-to-earnings-growth ratio of 3.77 and a beta of 2.42. The business has a 50 day moving average of $118.70 and a 200 day moving average of $86.38.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $0.42 EPS for the quarter, beating analysts' consensus estimates of $0.30 by $0.12. The business had revenue of $989.00 million for the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same quarter last year, the company earned $0.21 earnings per share. Research analysts predict that Robinhood Markets, Inc. will post 1.35 earnings per share for the current year.

Insider Buying and Selling at Robinhood Markets

In related news, Director Baiju Bhatt sold 418,338 shares of the stock in a transaction on Wednesday, September 10th. The stock was sold at an average price of $119.42, for a total transaction of $49,957,923.96. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Daniel Martin Gallagher, Jr. sold 25,000 shares of the firm's stock in a transaction dated Friday, October 3rd. The stock was sold at an average price of $148.34, for a total value of $3,708,500.00. Following the completion of the sale, the insider directly owned 565,949 shares in the company, valued at approximately $83,952,874.66. The trade was a 4.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 5,566,947 shares of company stock valued at $606,609,792. 19.95% of the stock is owned by company insiders.

Institutional Trading of Robinhood Markets

Hedge funds have recently added to or reduced their stakes in the business. Hantz Financial Services Inc. boosted its stake in Robinhood Markets by 120.3% in the 2nd 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 boosted its stake in Robinhood Markets by 52.2% in the 1st 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 stake in Robinhood Markets in the 2nd quarter worth about $29,000. Wayfinding Financial LLC acquired a new stake in Robinhood Markets in the 1st quarter worth about $30,000. Finally, Pandora Wealth Inc. acquired a new stake in Robinhood Markets in the 1st quarter worth about $33,000. 93.27% of the stock is owned by institutional investors and hedge funds.

Robinhood Markets Company Profile

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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