Robinhood Markets (NASDAQ:HOOD) Trading Up 1.4% - Here's Why

Key Points

• Robinhood Markets shares experienced a 1.4% increase in trading, reaching a last traded price of $112.31 after opening at $113.30.
• Multiple analysts have raised their price targets for Robinhood, with Morgan Stanley increasing it to $110.00 while Needham & Company raised it to $120.00, reflecting positive sentiment for the stock.
• The company reported earnings of $0.42 per share, exceeding expectations, with a significant year-over-year revenue increase of 45% during the quarter.

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) traded up 1.4% during trading on Friday . The company traded as high as $113.30 and last traded at $112.31. 14,428,835 shares traded hands during trading, a decline of 65% from the average session volume of 41,611,902 shares. The stock had previously closed at $110.71.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on HOOD shares. Morgan Stanley upped their price target on shares of Robinhood Markets from $43.00 to $110.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 15th. Piper Sandler increased their target price on Robinhood Markets from $110.00 to $120.00 and gave the company an "overweight" rating in a report on Thursday, July 31st. Needham & Company LLC raised their target price on Robinhood Markets from $71.00 to $120.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. JPMorgan Chase & Co. lifted their price target on Robinhood Markets from $44.00 to $47.00 and gave the company a "neutral" rating in a report on Thursday, May 1st. Finally, Barclays upped their price target on Robinhood Markets from $102.00 to $120.00 and gave the company an "overweight" rating in a research report on Thursday, July 31st. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and eleven have given a buy rating to the company. According to data from MarketBeat.com, Robinhood Markets presently has a consensus rating of "Moderate Buy" and a consensus price target of $100.31.

Robinhood Markets Stock Performance

The company has a 50 day moving average of $94.57 and a 200 day moving average of $65.70. The firm has a market cap of $99.81 billion, a P/E ratio of 57.04, a PEG ratio of 4.14 and a beta of 2.36.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported $0.42 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.30 by $0.12. Robinhood Markets had a net margin of 50.13% and a return on equity of 17.48%. The firm had revenue of $989.00 million during the quarter, compared to analysts' expectations of $893.93 million. During the same period in the previous year, the company earned $0.21 earnings per share. The company's revenue was up 45.0% compared to the same quarter last year. As a group, analysts expect that Robinhood Markets, Inc. will post 1.35 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Steven M. Quirk sold 40,131 shares of the stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $104.71, for a total transaction of $4,202,117.01. Following the transaction, the insider owned 120,408 shares of the company's stock, valued at approximately $12,607,921.68. This represents a 25.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Daniel Martin Gallagher, Jr. sold 25,000 shares of the business's stock in a transaction that occurred on 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 completion of 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 ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 4,644,685 shares of company stock worth $430,085,957 in the last 90 days. 14.47% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Robinhood Markets

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Moore Capital Management LP bought a new position in shares of Robinhood Markets in the second quarter worth about $2,622,000. Militia Capital Partners LP boosted its stake in Robinhood Markets by 13.0% during the 2nd quarter. Militia Capital Partners LP now owns 18,678 shares of the company's stock valued at $1,749,000 after purchasing an additional 2,150 shares during the period. Modern Wealth Management LLC acquired a new stake in Robinhood Markets in the 2nd quarter valued at approximately $226,000. Lazard Asset Management LLC increased its position in Robinhood Markets by 1,842.3% in the 2nd quarter. Lazard Asset Management LLC now owns 2,758 shares of the company's stock worth $257,000 after buying an additional 2,616 shares during the period. Finally, HRT Financial LP lifted its holdings in shares of Robinhood Markets by 316.8% during the second quarter. HRT Financial LP now owns 2,041,945 shares of the company's stock worth $191,187,000 after buying an additional 1,551,983 shares during the last quarter. Institutional investors and hedge funds 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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