Robinhood Markets (NASDAQ:HOOD) Trading 5.8% Higher - What's Next?

Key Points

• Robinhood Markets shares experienced a 5.8% increase during mid-day trading, reaching a price of $111.77, despite a significant drop in trading volume compared to the average.
• Several analysts have raised their price targets for Robinhood, with Morgan Stanley and KeyCorp both setting their targets at $110.00, contributing to a consensus average target price of $96.29.
• In recent insider trading, two executives sold substantial amounts of shares, indicating a 27.54% decrease in ownership for insider Daniel Martin Gallagher, Jr. after selling 225,000 shares.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shares traded up 5.8% during mid-day trading on Thursday . The stock traded as high as $112.03 and last traded at $111.77. 20,650,674 shares were traded during trading, a decline of 50% from the average session volume of 41,685,375 shares. The stock had previously closed at $105.65.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on HOOD shares. Morgan Stanley increased their price objective on Robinhood Markets from $43.00 to $110.00 and gave the company an "equal weight" rating in a report on Tuesday, July 15th. Redburn Atlantic reiterated a "sell" rating and issued a $48.00 price target (up from $40.00) on shares of Robinhood Markets in a research note on Monday, June 9th. KeyCorp lifted their price objective on shares of Robinhood Markets from $60.00 to $110.00 and gave the company an "overweight" rating in a research note on Tuesday, July 1st. The Goldman Sachs Group upped their price objective 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. Finally, Deutsche Bank Aktiengesellschaft raised their price objective on Robinhood Markets from $70.00 to $85.00 and gave the stock a "buy" rating in a research report on Monday, June 9th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and twelve have given a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $96.29.

Robinhood Markets Stock Up 5.3%

The stock has a market cap of $98.49 billion, a P/E ratio of 56.46, a price-to-earnings-growth ratio of 4.02 and a beta of 2.36. The business's 50-day simple moving average is $89.38 and its two-hundred day simple moving average is $63.12.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last announced its 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 analyst estimates of $893.93 million. Robinhood Markets had a net margin of 50.13% and a return on equity of 17.48%. The firm's quarterly revenue was up 45.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.21 earnings per share. Analysts anticipate that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Daniel Martin Gallagher, Jr. sold 225,000 shares of Robinhood Markets stock in a transaction on Friday, August 1st. The shares were sold at an average price of $99.97, for a total value of $22,493,250.00. Following the transaction, the insider directly owned 591,887 shares of the company's stock, valued at $59,170,943.39. The trade was a 27.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Vladimir Tenev sold 750,000 shares of the stock in a transaction that occurred on Tuesday, July 1st. The stock was 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. Insiders have sold 4,830,629 shares of company stock valued at $438,930,436 in the last 90 days. 14.47% of the stock is owned by insiders.

Institutional Trading of Robinhood Markets

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Hantz Financial Services Inc. boosted its holdings in shares of 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 acquiring an additional 148 shares during the last quarter. V Square Quantitative Management LLC bought a new stake in shares of Robinhood Markets in the 2nd quarter worth about $36,000. LGT Financial Advisors LLC bought a new stake in shares of Robinhood Markets in the 2nd quarter valued at approximately $37,000. Atlantic Union Bankshares Corp bought a new position in Robinhood Markets during the second quarter valued at $37,000. Finally, REAP Financial Group LLC boosted its position in shares of Robinhood Markets by 44.1% during the second quarter. REAP Financial Group LLC now owns 523 shares of the company's stock valued at $49,000 after buying an additional 160 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.

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