Robinhood Markets (NASDAQ:HOOD) Trading 7.2% Higher - Here's Why

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shot up 7.2% on Thursday . The stock traded as high as $53.94 and last traded at $53.59. 21,073,134 shares were traded during mid-day trading, a decline of 19% from the average session volume of 25,997,452 shares. The stock had previously closed at $49.99.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on HOOD shares. Raymond James began coverage on Robinhood Markets in a research report on Wednesday, February 5th. They set a "market perform" rating for the company. Morgan Stanley downgraded Robinhood Markets from an "overweight" rating to an "equal weight" rating and set a $40.00 price objective for the company. in a report on Tuesday, April 8th. Wolfe Research cut shares of Robinhood Markets from an "outperform" rating to a "peer perform" rating in a research report on Tuesday, February 18th. Keefe, Bruyette & Woods reissued a "market perform" rating and issued a $60.00 target price on shares of Robinhood Markets in a research note on Thursday, March 27th. Finally, Needham & Company LLC dropped their price objective on Robinhood Markets from $62.00 to $58.00 and set a "buy" rating on the stock in a research note on Thursday, May 1st. Six equities research analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $53.24.

Robinhood Markets Stock Up 1.1 %

The company's 50 day moving average price is $43.38 and its 200-day moving average price is $42.50. The stock has a market cap of $48.39 billion, a P/E ratio of 34.81, a P/E/G ratio of 1.05 and a beta of 2.15.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its quarterly earnings data on Wednesday, April 30th. The company reported $0.37 earnings per share for the quarter, missing the consensus estimate of $0.41 by ($0.04). Robinhood Markets had a return on equity of 13.53% and a net margin of 47.81%. The business had revenue of $927.00 million during the quarter, compared to the consensus estimate of $917.12 million. During the same period last year, the business posted $0.18 earnings per share. The business's revenue was up 50.0% on a year-over-year basis. Equities research analysts anticipate that Robinhood Markets, Inc. will post 1.35 earnings per share for the current year.

Insider Activity

In other news, CEO Vladimir Tenev sold 750,000 shares of the company's stock in a transaction on Tuesday, April 1st. The shares were sold at an average price of $41.96, for a total value of $31,470,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO Jeffrey Tsvi Pinner sold 5,853 shares of the firm's stock in a transaction dated Wednesday, March 5th. The shares were sold at an average price of $46.81, for a total transaction of $273,978.93. Following the transaction, the chief technology officer now directly owns 17,559 shares in the company, valued at $821,936.79. The trade was a 25.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 2,243,727 shares of company stock worth $109,688,747 in the last quarter. 14.47% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Whipplewood Advisors LLC raised its position in Robinhood Markets by 564.4% in the first quarter. Whipplewood Advisors LLC now owns 598 shares of the company's stock worth $25,000 after acquiring an additional 508 shares during the period. New Wave Wealth Advisors LLC bought a new stake in shares of Robinhood Markets in the 4th quarter worth approximately $26,000. 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 purchasing an additional 218 shares during the last quarter. Wayfinding Financial LLC purchased a new stake in Robinhood Markets in the first quarter worth $30,000. Finally, CoreCap Advisors LLC raised its stake in shares of Robinhood Markets by 191.6% in the fourth quarter. CoreCap Advisors LLC now owns 837 shares of the company's stock valued at $31,000 after buying an additional 550 shares during the period. Hedge funds and other institutional investors own 93.27% of the company's stock.

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.