Robinhood Markets (NASDAQ:HOOD) Trading 1.6% Higher - Should You Buy?

Key Points

• Robinhood Markets' stock price increased by 1.6%, trading close to $107.03, with a significant drop in trading volume down 65% compared to its average.
• Several analysts have raised their price targets for Robinhood, with Citigroup increasing its target from $100 to $120 and Cantor Fitzgerald from $100 to $118, indicating positive sentiment among a majority of analysts.
• The company reported a quarterly earnings per share (EPS) of $0.42, exceeding expectations, and achieved a 45% year-over-year increase in revenue to $989 million.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s share price traded up 1.6% during mid-day trading on Thursday . The company traded as high as $107.55 and last traded at $107.03. 14,662,136 shares were traded during trading, a decline of 65% from the average session volume of 41,657,652 shares. The stock had previously closed at $105.34.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the company. Citigroup boosted their target price on Robinhood Markets from $100.00 to $120.00 and gave the stock a "neutral" rating in a research report on Thursday, July 31st. Cantor Fitzgerald boosted their target price on Robinhood Markets from $100.00 to $118.00 and gave the stock an "overweight" rating in a research report on Thursday, July 31st. Compass Point boosted their target price on Robinhood Markets from $64.00 to $96.00 and gave the stock a "buy" rating in a research report on Friday, June 27th. Keefe, Bruyette & Woods lifted their price target on Robinhood Markets from $89.00 to $106.00 and gave the company a "market perform" rating in a report on Thursday, July 31st. Finally, Mizuho upped their price target on Robinhood Markets from $99.00 to $120.00 and gave the company an "outperform" rating in a research report on Thursday, July 31st. Eleven research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $100.31.

Robinhood Markets Trading Up 0.9%

The firm has a 50-day simple moving average of $97.50 and a two-hundred day simple moving average of $67.34. The company has a market capitalization of $94.43 billion, a price-to-earnings ratio of 53.91, a price-to-earnings-growth ratio of 3.94 and a beta of 2.36.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released its quarterly earnings results 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. The company had revenue of $989.00 million during the quarter, compared to the consensus estimate of $893.93 million. Robinhood Markets had a return on equity of 17.48% and a net margin of 50.13%.The firm's revenue was up 45.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.21 EPS. On average, sell-side analysts forecast that Robinhood Markets, Inc. will post 1.35 earnings per share for the current year.

Insider Activity at Robinhood Markets

In other news, CTO Jeffrey Tsvi Pinner sold 5,864 shares of the company's stock in a transaction dated Friday, July 25th. The stock was sold at an average price of $104.73, for a total transaction of $614,136.72. Following the completion of the sale, the chief technology officer owned 3,044 shares in the company, valued at approximately $318,798.12. This represents a 65.83% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Daniel Martin Gallagher, Jr. sold 25,000 shares of the company's stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $104.23, for a total value of $2,605,750.00. Following the sale, the insider owned 566,887 shares of the company's stock, valued at approximately $59,086,632.01. This trade represents a 4.22% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 4,644,685 shares of company stock worth $448,881,884 in the last 90 days. Insiders own 14.47% of the company's stock.

Institutional Trading of Robinhood Markets

Several hedge funds have recently added to or reduced their stakes in the business. Whipplewood Advisors LLC raised its holdings in Robinhood Markets by 564.4% in the 1st quarter. Whipplewood Advisors LLC now owns 598 shares of the company's stock valued at $25,000 after acquiring an additional 508 shares in the last quarter. Hantz Financial Services Inc. increased its holdings in Robinhood Markets by 120.3% during the 2nd quarter. Hantz Financial Services Inc. now owns 271 shares of the company's stock valued at $25,000 after purchasing an additional 148 shares in the last quarter. Hemington Wealth Management increased its holdings in Robinhood Markets by 52.2% during the 1st quarter. Hemington Wealth Management now owns 636 shares of the company's stock valued at $26,000 after purchasing an additional 218 shares in the last quarter. Smithfield Trust Co acquired a new stake in shares of Robinhood Markets in the 2nd quarter valued at $29,000. Finally, Wayfinding Financial LLC acquired a new stake in shares of Robinhood Markets in the 1st quarter valued at $30,000. 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.

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