Robinhood Markets (NASDAQ:HOOD) Trading Up 2.4% Following Analyst Upgrade

Key Points

• Robinhood Markets' stock price increased by 2.4% following an analyst upgrade from Mizuho, who raised their price target from $120.00 to $145.00.
• Various analysts have given positive ratings to Robinhood, with Goldman Sachs upgrading their target price to $104.00 and eleven analysts assigning a "Buy" rating to the stock.
• Insiders sold a total of 5,355,381 shares of Robinhood stock in the last three months, representing a significant decrease in their ownership, with directors Baiju Bhatt and Meyer Malka completing substantial sales.

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shot up 2.4% on Wednesday after Mizuho raised their price target on the stock from $120.00 to $145.00. Mizuho currently has an outperform rating on the stock. Robinhood Markets traded as high as $123.44 and last traded at $121.34. 19,670,592 shares traded hands during trading, a decline of 53% from the average session volume of 41,600,988 shares. The stock had previously closed at $118.50.

A number of other analysts also recently weighed in on HOOD. Piper Sandler began coverage on shares of Robinhood Markets in a research report on Wednesday. They set an "overweight" rating and a $120.00 price target for the company. Citigroup raised their price target on shares of Robinhood Markets from $100.00 to $120.00 and gave the stock a "neutral" rating in a research report on Thursday, July 31st. Keefe, Bruyette & Woods raised their price target on shares of Robinhood Markets from $89.00 to $106.00 and gave the stock a "market perform" rating in a research report on Thursday, July 31st. The Goldman Sachs Group raised their price target on shares of Robinhood Markets from $91.00 to $104.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Finally, KeyCorp raised their price target on shares of Robinhood Markets from $60.00 to $110.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 1st. Eleven investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $101.88.

Insider Activity

In related news, insider Steven M. Quirk sold 92,257 shares of the firm's stock in a transaction on Wednesday, June 25th. The stock was sold at an average price of $84.96, for a total transaction of $7,838,154.72. Following the transaction, the insider directly owned 136,364 shares in the company, valued at $11,585,485.44. This trade represents a 40.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Vladimir Tenev sold 750,000 shares of the firm's stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $93.27, for a total value of $69,952,500.00. The disclosure for this sale can be found here. Insiders sold a total of 5,773,719 shares of company stock valued at $589,293,510 over the last three months. 14.47% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Robinhood Markets

Hedge funds have recently added to or reduced their stakes in the stock. Whipplewood Advisors LLC lifted its stake in Robinhood Markets by 564.4% in the first quarter. Whipplewood Advisors LLC now owns 598 shares of the company's stock valued at $25,000 after buying an additional 508 shares during the last quarter. Hantz Financial Services Inc. lifted its stake 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 last quarter. Hemington Wealth Management lifted its stake 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 last quarter. Smithfield Trust Co bought a new stake in Robinhood Markets in the second quarter valued at $29,000. Finally, Wayfinding Financial LLC bought a new stake in Robinhood Markets in the first quarter valued at $30,000. 93.27% of the stock is currently owned by institutional investors.

Robinhood Markets Stock Down 2.3%

The company has a market capitalization of $102.22 billion, a P/E ratio of 58.39, a PEG ratio of 4.32 and a beta of 2.36. The business has a 50 day simple moving average of $105.99 and a 200-day simple moving average of $73.46.

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

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.