Robinhood Markets (NASDAQ:HOOD) Trading 4% Higher - Should You Buy?

Key Points

• Robinhood Markets experienced a 4% increase in trading, reaching up to $103.87, although trading volume was down 60% compared to its average.
• Research analysts have set new price targets for Robinhood, with Citigroup increasing it to $120.00 and JMP Securities raising it to $130.00, while the stock currently holds a consensus rating of "Moderate Buy."
• Insider trading activity has been significant, with notable sales by directors and the CEO, including a sale of 750,000 shares by CEO Vladimir Tenev valued at approximately $69.95 million.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) traded up 4% during trading on Monday . The company traded as high as $103.32 and last traded at $103.87. 16,637,080 shares changed hands during mid-day trading, a decline of 60% from the average session volume of 41,740,406 shares. The stock had previously closed at $99.90.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. Citigroup upped their target price on Robinhood Markets from $100.00 to $120.00 and gave the company a "neutral" rating in a research note on Thursday. JMP Securities upped their price target on Robinhood Markets from $125.00 to $130.00 and gave the company a "market outperform" rating in a research report on Thursday. Deutsche Bank Aktiengesellschaft increased their target price on Robinhood Markets from $70.00 to $85.00 and gave the stock a "buy" rating in a report on Monday, June 9th. The Goldman Sachs Group increased their target price on Robinhood Markets from $91.00 to $104.00 and gave the stock a "buy" rating in a report on Monday, July 7th. Finally, Redburn Atlantic reiterated a "sell" rating and issued a $48.00 price target (up previously from $40.00) on shares of Robinhood Markets in a report on Monday, June 9th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and twelve have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $96.29.

Robinhood Markets Trading Up 6.2%

The firm has a market capitalization of $93.93 billion, a P/E ratio of 53.96, a P/E/G ratio of 4.59 and a beta of 2.36. The firm has a 50-day moving average of $86.92 and a two-hundred day moving average of $62.11.

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

Insider Buying and Selling at Robinhood Markets

In other Robinhood Markets news, Director Baiju Bhatt sold 418,338 shares of the stock in a transaction dated Wednesday, June 11th. The stock was sold at an average price of $74.29, for a total value of $31,078,330.02. Following the completion of the transaction, the director directly owned 7,863 shares in the company, valued at approximately $584,142.27. This trade represents a 98.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Vladimir Tenev sold 750,000 shares of the stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $93.27, for a total value of $69,952,500.00. The disclosure for this sale can be found here. Over the last three months, insiders sold 3,001,690 shares of company stock worth $255,967,852. 19.95% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Robinhood Markets

Several institutional investors and hedge funds have recently made changes to their positions in HOOD. Whipplewood Advisors LLC grew its stake in Robinhood Markets by 564.4% during the first quarter. Whipplewood Advisors LLC now owns 598 shares of the company's stock worth $25,000 after purchasing an additional 508 shares during the period. Hantz Financial Services Inc. grew its stake in Robinhood Markets by 120.3% in the second quarter. Hantz Financial Services Inc. now owns 271 shares of the company's stock valued at $25,000 after acquiring an additional 148 shares during the period. Hemington Wealth Management grew 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 acquiring an additional 218 shares during the period. Wayfinding Financial LLC acquired a new stake in Robinhood Markets in the first quarter valued at approximately $30,000. Finally, CoreCap Advisors LLC grew its stake in 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 acquiring an additional 550 shares during the period. Institutional investors and hedge funds 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.

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