Robinhood Markets (NASDAQ:HOOD) Trading 7.4% Higher - Still a Buy?

Key Points

• Robinhood Markets' share price increased by 7.4% to $130.80, with 9.3 million shares traded, significantly lower than its average trading volume.
• Several analysts have raised their target prices for Robinhood, predicting an average target of $104.06 and a consensus "Moderate Buy" rating.
• In recent insider trading activity, Director Meyer Malka sold over 1 million shares, representing a significant reduction in ownership by 21.57%.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s share price shot up 7.4% during trading on Monday . The stock traded as high as $129.70 and last traded at $130.80. 9,298,202 shares traded hands during trading, a decline of 78% from the average session volume of 41,928,891 shares. The stock had previously closed at $121.78.

Wall Street Analysts Forecast Growth

Several research firms have commented on HOOD. JMP Securities lifted their target price on shares of Robinhood Markets from $125.00 to $130.00 and gave the stock a "market outperform" rating in a research report on Thursday, July 31st. Keefe, Bruyette & Woods boosted their price target on shares of Robinhood Markets from $89.00 to $106.00 and gave the company a "market perform" rating in a research report on Thursday, July 31st. Needham & Company LLC upped their price target on shares of Robinhood Markets from $71.00 to $120.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Mizuho upped their price objective on shares of Robinhood Markets from $120.00 to $145.00 and gave the company an "outperform" rating in a research note on Wednesday, September 10th. Finally, Deutsche Bank Aktiengesellschaft raised their target price on shares of Robinhood Markets from $70.00 to $85.00 and gave the company a "buy" rating in a research note on Monday, June 9th. 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.com, Robinhood Markets presently has an average rating of "Moderate Buy" and an average target price of $104.06.

Robinhood Markets Stock Performance

The business's fifty day simple moving average is $110.49 and its 200-day simple moving average is $79.34. The company has a market capitalization of $120.67 billion, a P/E ratio of 68.77, a P/E/G ratio of 4.34 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 EPS for the quarter, topping analysts' consensus estimates of $0.30 by $0.12. The firm had revenue of $989.00 million during the quarter, compared to analysts' expectations of $893.93 million. Robinhood Markets had a net margin of 50.13% and a return on equity of 17.48%. The firm's revenue for the quarter was up 45.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.21 EPS. As a group, analysts forecast that Robinhood Markets, Inc. will post 1.35 EPS for the current year.

Insider Activity at Robinhood Markets

In other Robinhood Markets news, Director Meyer Malka sold 1,093,288 shares of the firm's stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $103.87, for a total value 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 trade represents a 21.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CTO Jeffrey Tsvi Pinner sold 5,864 shares of the firm's stock in a transaction on Monday, September 22nd. The stock was sold at an average price of $124.13, for a total transaction of $727,898.32. Following the completion of the transaction, the chief technology officer directly owned 17,816 shares of the company's stock, valued at approximately $2,211,500.08. This represents a 24.76% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 5,681,462 shares of company stock valued at $581,726,917 over the last three months. Company insiders own 14.47% of the company's stock.

Institutional Trading of Robinhood Markets

Several hedge funds and other institutional investors have recently added to or reduced their stakes in HOOD. Corient Private Wealth LLC boosted its position in Robinhood Markets by 41.2% during the second quarter. Corient Private Wealth LLC now owns 43,039 shares of the company's stock worth $4,030,000 after acquiring an additional 12,564 shares during the last quarter. CacheTech Inc. purchased a new stake in shares of Robinhood Markets in the 2nd quarter valued at approximately $240,000. Adams Wealth Management purchased a new stake in shares of Robinhood Markets in the 2nd quarter valued at approximately $240,000. Silicon Valley Capital Partners raised its stake in shares of Robinhood Markets by 33.3% in the 2nd quarter. Silicon Valley Capital Partners now owns 2,000 shares of the company's stock valued at $187,000 after acquiring an additional 500 shares during the period. Finally, Centaurus Financial Inc. raised its stake in shares of Robinhood Markets by 34.2% in the 2nd quarter. Centaurus Financial Inc. now owns 12,791 shares of the company's stock valued at $1,198,000 after acquiring an additional 3,259 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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