Robinhood Markets (NASDAQ:HOOD) Stock Price Up 4.5% - Should You Buy?

Key Points

• Robinhood Markets' stock price increased by 4.5%, reaching a high of $140.20 before closing at $135.80, despite a 34% decline in trading volume compared to the average session.
• Analysts have given Robinhood's stock a Moderate Buy rating, with a consensus target price of $118.94, and numerous brokerages raising their target prices significantly.
• The company reported strong quarterly earnings, with an EPS of $0.42 and revenue of $989 million, representing a 45% year-over-year increase.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s stock price shot up 4.5% on Monday . The stock traded as high as $140.20 and last traded at $135.80. 27,373,134 shares were traded during mid-day trading, a decline of 34% from the average session volume of 41,324,063 shares. The stock had previously closed at $129.91.

Analyst Ratings Changes

Several brokerages recently weighed in on HOOD. Compass Point lifted their price objective on shares of Robinhood Markets from $64.00 to $96.00 and gave the company a "buy" rating in a research report on Friday, June 27th. Mizuho boosted their target price on shares of Robinhood Markets from $120.00 to $145.00 and gave the stock an "outperform" rating in a report on Wednesday, September 10th. Keefe, Bruyette & Woods lifted their target price 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. Needham & Company LLC lifted their target price on shares of Robinhood Markets from $120.00 to $145.00 and gave the stock a "buy" rating in a research report on Tuesday, September 30th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Robinhood Markets in a research report on Wednesday, October 8th. Twelve analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $118.94.

Robinhood Markets Stock Performance

The stock has a market capitalization of $120.68 billion, a price-to-earnings ratio of 68.93, a PEG ratio of 3.43 and a beta of 2.42. The company's 50 day moving average is $121.26 and its 200 day moving average is $89.63.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.30 by $0.12. The firm 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 quarter in the previous year, the firm posted $0.21 EPS. On average, equities research analysts anticipate that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Insider Transactions at Robinhood Markets

In related news, Director Baiju Bhatt sold 418,338 shares of the stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $119.42, for a total transaction of $49,957,923.96. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Daniel Martin Gallagher, Jr. sold 25,000 shares of the stock in a transaction dated Friday, October 3rd. The stock was 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 $83,952,874.66. This trade represents a 4.23% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 5,181,462 shares of company stock worth $567,328,871. 14.47% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. XML Financial LLC bought a new position in Robinhood Markets during the 3rd quarter worth approximately $285,000. Delta Investment Management LLC acquired a new position in Robinhood Markets during the third quarter worth $274,000. Accurate Wealth Management LLC increased its holdings in Robinhood Markets by 75.5% during the third quarter. Accurate Wealth Management LLC now owns 3,653 shares of the company's stock worth $493,000 after buying an additional 1,572 shares during the last quarter. Heritage Oak Wealth Advisors LLC acquired a new position in Robinhood Markets during the third quarter worth $332,000. Finally, Stonebridge Financial Group LLC acquired a new position in Robinhood Markets during the third quarter worth $206,000. Institutional investors own 93.27% of the company's stock.

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.