Robinhood Markets (NASDAQ:HOOD) Trading 1.2% Higher - Here's Why

Key Points

• Robinhood Markets (NASDAQ:HOOD) shares have seen a 1.2% increase, trading at $104.13, despite a significant drop in daily trading volume.
• Analysts have mixed views on the stock, with price targets ranging from $48.00 to $120.00, reflecting a general consensus rating of "Moderate Buy."
• The company reported strong earnings, with revenue up 45% year-over-year, exceeding analyst expectations, and a quarterly EPS of $0.42.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shares were up 1.2% on Thursday . The stock traded as high as $105.40 and last traded at $104.13. Approximately 10,118,076 shares changed hands during trading, a decline of 76% from the average daily volume of 41,385,242 shares. The stock had previously closed at $102.92.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on HOOD. Compass Point raised their price objective on shares of Robinhood Markets from $64.00 to $96.00 and gave the stock a "buy" rating in a report on Friday, June 27th. Redburn Atlantic reissued a "sell" rating and set a $48.00 target price (up from $40.00) on shares of Robinhood Markets in a research report on Monday, June 9th. Barclays raised their price target on shares of Robinhood Markets from $102.00 to $120.00 and gave the stock an "overweight" rating in a research note on Thursday, July 31st. Morgan Stanley upped their price objective on Robinhood Markets from $43.00 to $110.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 15th. Finally, Piper Sandler increased their price objective on Robinhood Markets from $110.00 to $120.00 and gave the company an "overweight" rating in a report on Thursday, July 31st. Eleven investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $100.31.

Robinhood Markets Price Performance

The stock has a market cap of $92.01 billion, a P/E ratio of 52.59, a PEG ratio of 3.99 and a beta of 2.36. The firm's fifty day moving average price is $100.68 and its two-hundred day moving average price is $69.18.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $0.42 earnings per share 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 company had revenue of $989.00 million for the quarter, compared to analysts' expectations of $893.93 million. During the same period in the prior year, the business earned $0.21 earnings per share. Robinhood Markets's revenue for the quarter was up 45.0% compared to the same quarter last year. On average, research analysts expect that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Insider Transactions at Robinhood Markets

In other Robinhood Markets news, CEO Vladimir Tenev sold 750,000 shares of the firm's stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $93.27, for a total transaction of $69,952,500.00. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Baiju Bhatt sold 1,568,421 shares of the business's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $99.98, for a total value of $156,810,731.58. The disclosure for this sale can be found here. Insiders sold 4,644,685 shares of company stock worth $448,881,884 in the last three months. Insiders own 14.47% of the company's stock.

Institutional Trading of Robinhood Markets

A number of institutional investors have recently modified their holdings of the company. WCM Investment Management LLC lifted its holdings in Robinhood Markets by 3,615.7% in the second quarter. WCM Investment Management LLC now owns 11,555,160 shares of the company's stock worth $1,081,910,000 after buying an additional 11,244,182 shares during the period. Norges Bank bought a new position in Robinhood Markets in the 2nd quarter worth about $973,122,000. Kingstone Capital Partners Texas LLC purchased a new stake in Robinhood Markets during the 2nd quarter valued at about $951,479,000. Vanguard Group Inc. increased its stake in Robinhood Markets by 8.6% during the 1st quarter. Vanguard Group Inc. now owns 74,241,080 shares of the company's stock valued at $3,089,914,000 after purchasing an additional 5,874,701 shares in the last quarter. Finally, AGF Management Ltd. raised its holdings in Robinhood Markets by 286.0% in the first quarter. AGF Management Ltd. now owns 5,743,715 shares of the company's stock worth $239,053,000 after buying 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.

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