Robinhood Markets (NASDAQ:HOOD) Stock Price Up 4.1% - Still a Buy?

Key Points

• Robinhood Markets shares rose by 4.1% recently, trading at $139.79 after hitting a high of $142.20, with a total of approximately 24 million shares traded.
• Multiple brokerages have raised their target prices for Robinhood, with Bank of America increasing theirs from $139.00 to $157.00, while Piper Sandler set a target of $140.00, indicating overall positive sentiment.
• The company reported a 45.0% increase in revenue year-over-year, with quarterly earnings per share of $0.42, surpassing analysts' expectations of $0.30.

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) were up 4.1% on Friday . The company traded as high as $142.20 and last traded at $139.79. Approximately 24,172,249 shares were traded during mid-day trading, a decline of 41% from the average daily volume of 41,041,469 shares. The stock had previously closed at $134.33.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on HOOD. Piper Sandler reiterated an "overweight" rating and issued a $140.00 target price (up from $120.00) on shares of Robinhood Markets in a research report on Tuesday, September 23rd. Bank of America increased their target price on shares of Robinhood Markets from $139.00 to $157.00 and gave the company a "buy" rating in a research report on Thursday, October 2nd. KeyCorp increased their target price on shares of Robinhood Markets from $60.00 to $110.00 and gave the company an "overweight" rating in a research report on Tuesday, July 1st. Barclays increased their target price on shares of Robinhood Markets from $102.00 to $120.00 and gave the company an "overweight" rating in a research report on Thursday, July 31st. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Robinhood Markets in a research report on Wednesday, October 8th. Twelve equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Robinhood Markets presently has a consensus rating of "Moderate Buy" and a consensus price target of $118.94.

Robinhood Markets Stock Up 4.1%

The stock has a market capitalization of $124.23 billion, a price-to-earnings ratio of 70.96, a PEG ratio of 3.30 and a beta of 2.42. The company's 50-day moving average is $122.90 and its 200-day moving average is $91.56.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released its quarterly earnings data 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. Robinhood Markets had a net margin of 50.13% and a return on equity of 17.48%. The firm had revenue of $989.00 million during the quarter, compared to analysts' expectations of $893.93 million. During the same period last year, the business earned $0.21 earnings per share. Robinhood Markets's revenue was up 45.0% compared to the same quarter last year. Sell-side analysts anticipate that Robinhood Markets, Inc. will post 1.35 EPS for the current year.

Insider Activity

In related news, Director Baiju Bhatt sold 418,338 shares of the firm's stock in a transaction dated Tuesday, October 21st. The shares were sold at an average price of $133.11, for a total transaction of $55,684,971.18. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Daniel Martin Gallagher, Jr. sold 25,000 shares of Robinhood Markets stock in a transaction dated Friday, October 3rd. The shares were sold at an average price of $148.34, for a total transaction of $3,708,500.00. Following the sale, the insider owned 565,949 shares of the company's stock, valued at approximately $83,952,874.66. This represents a 4.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 5,175,598 shares of company stock valued at $579,779,430 in the last quarter. Insiders own 14.47% of the company's stock.

Institutional Investors Weigh In On Robinhood Markets

A number of institutional investors have recently made changes to their positions in HOOD. Hantz Financial Services Inc. increased its position in shares of Robinhood Markets by 120.3% during the second quarter. Hantz Financial Services Inc. now owns 271 shares of the company's stock valued at $25,000 after acquiring an additional 148 shares during the last quarter. Hemington Wealth Management increased its position in shares of Robinhood Markets by 52.2% during the first quarter. Hemington Wealth Management now owns 636 shares of the company's stock valued at $26,000 after acquiring an additional 218 shares during the last quarter. Valley National Advisers Inc. increased its position in shares of Robinhood Markets by 113.6% during the third quarter. Valley National Advisers Inc. now owns 188 shares of the company's stock valued at $26,000 after acquiring an additional 100 shares during the last quarter. Smithfield Trust Co acquired a new stake in shares of Robinhood Markets during the second quarter valued at about $29,000. Finally, Wayfinding Financial LLC acquired a new stake in shares of Robinhood Markets during the first quarter valued at about $30,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

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.