Robinhood Markets (NASDAQ:HOOD) Shares Up 4.7% on Analyst Upgrade

Key Points

• Robinhood Markets shares rose 4.7% after Bank of America increased its price target from $139 to $157, maintaining a buy rating on the stock.
• A variety of analysts have also raised their price targets for Robinhood, with Goldman Sachs adjusting theirs from $134 to $152.
• The company saw significant insider selling, with directors selling over 4.9 million shares in the last ninety days, raising concerns amid the stock's upward movement.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) was up 4.7% on Thursday after Bank of America raised their price target on the stock from $139.00 to $157.00. Bank of America currently has a buy rating on the stock. Robinhood Markets traded as high as $146.70 and last traded at $145.70. Approximately 34,413,369 shares changed hands during trading, a decline of 18% from the average daily volume of 42,211,305 shares. The stock had previously closed at $139.14.

A number of other equities analysts have also recently commented on HOOD. The Goldman Sachs Group raised their target price on Robinhood Markets from $134.00 to $152.00 and gave the company a "buy" rating in a report on Tuesday. Barclays increased their price target on Robinhood Markets from $102.00 to $120.00 and gave the company an "overweight" rating in a research report on Thursday, July 31st. Deutsche Bank Aktiengesellschaft increased their price target on Robinhood Markets from $70.00 to $85.00 and gave the company a "buy" rating in a research report on Monday, June 9th. Needham & Company LLC increased their price target on Robinhood Markets from $120.00 to $145.00 and gave the company a "buy" rating in a research report on Tuesday. Finally, Piper Sandler reaffirmed an "overweight" rating and issued a $140.00 price target (up previously from $120.00) on shares of Robinhood Markets in a research report on Tuesday, September 23rd. Twelve 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. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $113.59.

Insider Buying and Selling at Robinhood Markets

In other news, Director Baiju Bhatt sold 418,338 shares of the firm's stock in a transaction dated Wednesday, September 10th. The stock was sold at an average price of $119.42, for a total transaction of $49,957,923.96. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Meyer Malka sold 1,093,288 shares of the firm's stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $103.87, for a total value of $113,559,824.56. Following the sale, the director directly owned 3,976,234 shares in the company, valued at $413,011,425.58. This trade represents a 21.57% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 4,906,462 shares of company stock worth $509,427,417. 14.47% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. HighTower Advisors LLC increased its holdings in shares of Robinhood Markets by 6.4% in the first quarter. HighTower Advisors LLC now owns 50,264 shares of the company's stock valued at $2,092,000 after purchasing an additional 3,032 shares during the period. TD Private Client Wealth LLC increased its holdings in shares of Robinhood Markets by 184.4% in the first quarter. TD Private Client Wealth LLC now owns 1,829 shares of the company's stock valued at $76,000 after purchasing an additional 1,186 shares during the period. Wellington Management Group LLP increased its holdings in shares of Robinhood Markets by 3.1% in the first quarter. Wellington Management Group LLP now owns 16,261 shares of the company's stock valued at $677,000 after purchasing an additional 486 shares during the period. Caitong International Asset Management Co. Ltd increased its holdings in shares of Robinhood Markets by 125.9% in the first quarter. Caitong International Asset Management Co. Ltd now owns 19,201 shares of the company's stock valued at $799,000 after purchasing an additional 10,703 shares during the period. Finally, Wealthcare Advisory Partners LLC acquired a new position in shares of Robinhood Markets in the first quarter valued at approximately $277,000. Institutional investors and hedge funds own 93.27% of the company's stock.

Robinhood Markets Stock Up 4.7%

The firm has a market cap of $129.48 billion, a price-to-earnings ratio of 73.96, a price-to-earnings-growth ratio of 5.10 and a beta of 2.42. The stock has a fifty day moving average price of $112.70 and a 200-day moving average price of $80.86.

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

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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