Robinhood Markets (NASDAQ:HOOD) Stock Price Up 4% - Time to Buy?

Key Points

• Robinhood Markets' stock price increased by 4% on Wednesday, closing at $150.87, following a significant trading volume of approximately 23.6 million shares.
• Several analysts have updated their ratings and price targets for Robinhood, with Mizuho and Piper Sandler reflecting positive sentiment by raising targets to $145.00 and $140.00, respectively.
• Insiders at Robinhood have sold a substantial number of shares recently, including CEO Vladimir Tenev, who sold 750,000 shares for over $104 million, indicating potential profit-taking amid fluctuating stock performance.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s stock price rose 4% on Wednesday . The stock traded as high as $151.35 and last traded at $150.87. Approximately 23,643,249 shares traded hands during trading, a decline of 44% from the average daily volume of 41,896,434 shares. The stock had previously closed at $145.00.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on HOOD. Mizuho increased their price target on Robinhood Markets from $120.00 to $145.00 and gave the company an "outperform" rating in a research note on Wednesday, September 10th. Piper Sandler reaffirmed an "overweight" rating and set a $140.00 price objective (up from $120.00) on shares of Robinhood Markets in a report on Tuesday, September 23rd. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Robinhood Markets in a report on Wednesday. Citigroup upped their price target on shares of Robinhood Markets from $120.00 to $135.00 and gave the company a "neutral" rating in a research note on Tuesday, September 23rd. Finally, Barclays increased their price target on Robinhood Markets from $102.00 to $120.00 and gave the company an "overweight" rating in a report on Thursday, July 31st. Twelve analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $113.59.

Robinhood Markets Stock Performance

The stock has a fifty day moving average price of $116.04 and a 200-day moving average price of $84.00. The firm has a market capitalization of $134.07 billion, a PE ratio of 76.58, a P/E/G ratio of 4.01 and a beta of 2.42.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate 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 net margin of 50.13% and a return on equity of 17.48%. The business's revenue for the quarter was up 45.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.21 earnings per share. Research analysts expect that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Steven M. Quirk sold 60,113 shares of the stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $100.91, for a total transaction of $6,066,002.83. Following the sale, the insider directly owned 94,454 shares of the company's stock, valued at approximately $9,531,353.14. This represents a 38.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Vladimir Tenev sold 750,000 shares of the stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $139.73, for a total transaction of $104,797,500.00. The disclosure for this sale can be found here. In the last quarter, insiders have sold 5,675,598 shares of company stock worth $617,385,075. Corporate insiders own 14.47% of the company's stock.

Institutional Trading of Robinhood Markets

Several institutional investors and hedge funds have recently bought and sold shares of HOOD. WCM Investment Management LLC grew its holdings in shares of Robinhood Markets by 3,615.7% during the second quarter. WCM Investment Management LLC now owns 11,555,160 shares of the company's stock worth $1,081,910,000 after purchasing an additional 11,244,182 shares during the last quarter. Norges Bank purchased a new position in Robinhood Markets during the 2nd quarter worth approximately $973,122,000. Kingstone Capital Partners Texas LLC purchased a new position in Robinhood Markets during the 2nd quarter worth approximately $951,479,000. Vanguard Group Inc. grew its position in shares of Robinhood Markets by 8.6% during the first quarter. Vanguard Group Inc. now owns 74,241,080 shares of the company's stock worth $3,089,914,000 after acquiring an additional 5,874,701 shares during the last quarter. Finally, AGF Management Ltd. grew its position in shares of Robinhood Markets by 286.0% during the first quarter. AGF Management Ltd. now owns 5,743,715 shares of the company's stock worth $239,053,000 after acquiring an additional 4,255,862 shares during the last quarter. 93.27% of the stock is currently owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.