Robinhood Markets (NASDAQ:HOOD) Shares Up 4.2% - Should You Buy?

Key Points

• Robinhood Markets' shares rose 4.2% to $110.73 on a day when trading volume markedly decreased by 56% from its average.
• Analysts have set new price targets for Robinhood, with expectations ranging from $48.00 to $120.00, reflecting a consensus rating of "Moderate Buy".
• The company reported its quarterly earnings with an EPS of $0.42, exceeding expectations and showing a revenue increase of 45.0% year-over-year.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s share price shot up 4.2% on Friday . The company traded as high as $110.63 and last traded at $110.73. 18,255,618 shares were traded during trading, a decline of 56% from the average session volume of 41,635,422 shares. The stock had previously closed at $106.30.

Analysts Set New Price Targets

HOOD has been the subject of several research reports. Needham & Company LLC increased their price objective on shares of Robinhood Markets from $71.00 to $120.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Redburn Atlantic reissued a "sell" rating and issued a $48.00 price objective (up previously from $40.00) on shares of Robinhood Markets in a research note on Monday, June 9th. Barclays increased their price objective 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. Citigroup increased their price objective on shares of Robinhood Markets from $100.00 to $120.00 and gave the company a "neutral" rating in a research note on Thursday, July 31st. Finally, Deutsche Bank Aktiengesellschaft upped their price target on shares of Robinhood Markets from $70.00 to $85.00 and gave the company a "buy" rating in a research report on Monday, June 9th. Eleven equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Robinhood Markets currently has an average rating of "Moderate Buy" and a consensus price target of $100.31.

Robinhood Markets Price Performance

The firm has a market capitalization of $97.15 billion, a price-to-earnings ratio of 55.49, a PEG ratio of 3.86 and a beta of 2.36. The business's fifty day simple moving average is $98.15 and its 200 day simple moving average is $67.71.

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

Insider Activity

In related news, CEO Vladimir Tenev sold 750,000 shares of the firm's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $93.27, for a total transaction of $69,952,500.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Steven M. Quirk sold 104,887 shares of the firm's stock in a transaction dated Tuesday, June 3rd. The stock was sold at an average price of $70.14, for a total transaction of $7,356,774.18. Following the sale, the insider owned 228,621 shares of the company's stock, valued at $16,035,476.94. This trade represents a 31.45% decrease in their position. The disclosure for this sale can be found here. Insiders sold 4,644,685 shares of company stock valued at $448,881,884 over the last ninety days. Company insiders own 14.47% of the company's stock.

Institutional Investors Weigh In On Robinhood Markets

A number of hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. lifted its holdings in shares of Robinhood Markets by 1.8% in the 2nd quarter. Vanguard Group Inc. now owns 75,612,131 shares of the company's stock worth $7,079,564,000 after acquiring an additional 1,371,051 shares during the last quarter. Newlands Management Operations LLC raised its holdings in Robinhood Markets by 1.1% during the 4th quarter. Newlands Management Operations LLC now owns 24,158,860 shares of the company's stock valued at $900,159,000 after buying an additional 273,860 shares during the last quarter. State Street Corp raised its holdings in Robinhood Markets by 9.2% during the 2nd quarter. State Street Corp now owns 15,870,421 shares of the company's stock valued at $1,485,948,000 after buying an additional 1,341,204 shares during the last quarter. Geode Capital Management LLC raised its holdings in Robinhood Markets by 4.0% during the 2nd quarter. Geode Capital Management LLC now owns 13,176,539 shares of the company's stock valued at $1,233,840,000 after buying an additional 507,926 shares during the last quarter. Finally, WCM Investment Management LLC raised its holdings in Robinhood Markets by 3,615.7% during the 2nd quarter. WCM Investment Management LLC now owns 11,555,160 shares of the company's stock valued at $1,081,910,000 after buying an additional 11,244,182 shares during the last quarter. 93.27% of the stock is currently owned by institutional investors.

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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