Robinhood Markets (NASDAQ:HOOD) Trading Up 14% - Still a Buy?

Key Points

• Robinhood Markets' stock price surged by 14%, reaching a trading high of $116.59, with over 50 million shares changing hands—23% more than its average volume.
• Analyst ratings show a mixed outlook, with 11 analysts rating the stock as a "Buy," while one analyst maintains a "Sell" rating, reflecting an average target price of $100.31.
• In its latest quarterly earnings report, Robinhood posted earnings of $0.42 per share and revenue of $989 million, significantly surpassing analysts' expectations and achieving a revenue increase of 45% year-over-year.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shares shot up 14% on Monday . The stock traded as high as $116.59 and last traded at $115.42. 50,977,735 shares changed hands during mid-day trading, an increase of 23% from the average session volume of 41,341,621 shares. The stock had previously closed at $101.25.

Analyst Ratings Changes

A number of brokerages have recently issued reports on HOOD. Keefe, Bruyette & Woods upped 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. KeyCorp upped their price target on Robinhood Markets from $60.00 to $110.00 and gave the stock an "overweight" rating in a report on Tuesday, July 1st. Redburn Atlantic reissued a "sell" rating and issued a $48.00 price objective (up from $40.00) on shares of Robinhood Markets in a report on Monday, June 9th. Morgan Stanley lifted their target price on Robinhood Markets from $43.00 to $110.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 15th. Finally, Mizuho boosted their target price on shares of Robinhood Markets from $99.00 to $120.00 and gave the stock an "outperform" rating in a report on Thursday, July 31st. Eleven equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $100.31.

Robinhood Markets Price Performance

The firm has a market cap of $103.85 billion, a price-to-earnings ratio of 59.35, a P/E/G ratio of 3.71 and a beta of 2.36. The company's 50 day simple moving average is $103.72 and its 200 day simple moving average is $71.42.

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, 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 business had revenue of $989.00 million during the quarter, compared to the consensus estimate of $893.93 million. During the same quarter in the prior year, the firm earned $0.21 EPS. The company's revenue for the quarter was up 45.0% compared to the same quarter last year. As a group, analysts forecast that Robinhood Markets, Inc. will post 1.35 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Baiju Bhatt sold 418,338 shares of the firm's stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $109.39, for a total value of $45,761,993.82. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Meyer Malka sold 1,093,288 shares of the company's stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $103.87, for a total value of $113,559,824.56. Following the sale, the director owned 3,976,234 shares of the company's stock, valued at $413,011,425.58. This trade represents a 21.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 5,767,854 shares of company stock valued at $569,828,413. Corporate insiders own 14.47% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Whipplewood Advisors LLC lifted its stake in shares of 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 purchasing an additional 508 shares during the period. Hantz Financial Services Inc. raised its stake in Robinhood Markets by 120.3% in the 2nd quarter. Hantz Financial Services Inc. now owns 271 shares of the company's stock worth $25,000 after acquiring an additional 148 shares during the last quarter. Hemington Wealth Management boosted its holdings in shares of Robinhood Markets by 52.2% during the 1st quarter. Hemington Wealth Management now owns 636 shares of the company's stock worth $26,000 after purchasing an additional 218 shares during the last quarter. Smithfield Trust Co purchased a new position in Robinhood Markets in the second quarter valued at $29,000. Finally, Wayfinding Financial LLC acquired a new stake in shares of Robinhood Markets during the 1st quarter valued at approximately $30,000. 93.27% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.