Robinhood Markets (NASDAQ:HOOD) Trading 12.3% Higher - Still a Buy?

Key Points

• Robinhood Markets' stock surged by 12.3% during trading, reaching up to $136.84 with a significant increase in trading volume.
• Wall Street analysts have issued mixed ratings, with Morgan Stanley raising the price target to $110.00 and Goldman Sachs to $104.00, contributing to a consensus rating of "Moderate Buy."
• Insiders have sold over 5.6 million shares worth approximately $581.7 million in the last quarter, indicating significant trading activity among company executives.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) rose 12.3% during trading on Monday . The stock traded as high as $136.84 and last traded at $136.72. Approximately 61,595,729 shares were traded during mid-day trading, an increase of 46% from the average daily volume of 42,242,535 shares. The stock had previously closed at $121.78.

Wall Street Analyst Weigh In

HOOD has been the subject of a number of analyst reports. Morgan Stanley lifted their price target on shares of Robinhood Markets from $43.00 to $110.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 15th. The Goldman Sachs Group boosted their target price on shares of Robinhood Markets from $91.00 to $104.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Citigroup increased their price target on shares of Robinhood Markets from $120.00 to $135.00 and gave the stock a "neutral" rating in a research report on Tuesday, September 23rd. Piper Sandler reissued an "overweight" rating and issued a $140.00 price objective (up from $120.00) on shares of Robinhood Markets in a report on Tuesday, September 23rd. Finally, Cantor Fitzgerald increased their target price on Robinhood Markets from $100.00 to $118.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Eleven research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $104.06.

Robinhood Markets Trading Up 12.3%

The company's 50-day moving average is $110.49 and its 200 day moving average is $79.34. The firm has a market cap of $121.50 billion, a PE ratio of 69.40, a P/E/G ratio of 4.34 and a beta of 2.36.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its earnings results 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. The company had revenue of $989.00 million for the quarter, compared to analyst estimates of $893.93 million. Robinhood Markets had a return on equity of 17.48% and a net margin of 50.13%.The business's revenue was up 45.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.21 EPS. On average, research analysts predict that Robinhood Markets, Inc. will post 1.35 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Meyer Malka sold 1,093,288 shares of the company's stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $103.87, for a total transaction of $113,559,824.56. Following the completion of the transaction, the director owned 3,976,234 shares of the company's stock, valued at approximately $413,011,425.58. This represents a 21.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Baiju Bhatt sold 1,568,421 shares of the stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $99.98, for a total transaction of $156,810,731.58. The disclosure for this sale can be found here. Insiders sold a total of 5,681,462 shares of company stock worth $581,726,917 over the last quarter. 14.47% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Robinhood Markets

Several large investors have recently modified their holdings of the stock. WCM Investment Management LLC lifted its position 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 in the last quarter. Norges Bank bought a new position in Robinhood Markets in the 2nd quarter worth approximately $973,122,000. Kingstone Capital Partners Texas LLC acquired a new position in Robinhood Markets during the 2nd quarter worth $951,479,000. Vanguard Group Inc. boosted its position in Robinhood Markets by 8.6% in the 1st quarter. Vanguard Group Inc. now owns 74,241,080 shares of the company's stock valued at $3,089,914,000 after buying an additional 5,874,701 shares during the last quarter. Finally, AGF Management Ltd. increased its stake in shares of Robinhood Markets by 286.0% in the 1st quarter. AGF Management Ltd. now owns 5,743,715 shares of the company's stock valued at $239,053,000 after buying an additional 4,255,862 shares during the period. 93.27% of the stock is currently owned by 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.