Robinhood Markets (NASDAQ:HOOD) Trading Up 2.8% - Here's Why

Key Points

• Robinhood shares rose 2.8% to $93.29 in mid-day trading, despite volume running about 50% below the average session level.
• Analysts remain broadly positive, with 21 Buy ratings and five Holds producing a consensus “Moderate Buy” rating and a $120.52 target price, although several firms recently lowered their targets.
• Robinhood exceeded quarterly expectations, reporting $0.62 EPS versus $0.44 expected and $1.31 billion in revenue, up 32.5% year over year; insiders sold shares under pre-arranged trading plans while institutions own 93.27% of the stock.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) was up 2.8% during mid-day trading on Friday . The stock traded as high as $95.75 and last traded at $93.29. 14,494,927 shares changed hands during trading, a decline of 50% from the average session volume of 28,829,549 shares. The stock had previously closed at $90.71.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on HOOD. Truist Financial dropped their target price on Robinhood Markets from $120.00 to $100.00 and set a "buy" rating for the company in a report on Monday, April 13th. Barclays cut their target price on shares of Robinhood Markets from $122.00 to $105.00 and set an "overweight" rating on the stock in a report on Thursday, July 30th. Weiss Ratings reiterated a "hold (c)" rating on shares of Robinhood Markets in a report on Wednesday, June 24th. Cantor Fitzgerald cut their price target on shares of Robinhood Markets from $130.00 to $115.00 and set an "overweight" rating on the stock in a report on Monday. Finally, Citizens Jmp reaffirmed a "market outperform" rating and set a $155.00 price objective on shares of Robinhood Markets in a research note on Thursday, July 30th. Twenty-one research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $120.52.

Robinhood Markets Stock Up 2.8%

The firm has a market capitalization of $84.01 billion, a P/E ratio of 41.10, a P/E/G ratio of 1.82 and a beta of 2.35. The company has a fifty day simple moving average of $99.19 and a 200 day simple moving average of $86.77. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.23.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.18. The firm had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.29 billion. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%.Robinhood Markets's quarterly revenue was up 32.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.42 EPS. On average, equities analysts expect that Robinhood Markets, Inc. will post 2.02 EPS for the current fiscal year.

Insider Activity at Robinhood Markets

In related news, Director Oluwadara Johnson Treseder sold 3,750 shares of the business's stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $117.50, for a total value of $440,625.00. Following the completion of the transaction, the director directly owned 72,442 shares in the company, valued at $8,511,935. The trade was a 4.92% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven M. Quirk sold 19,377 shares of Robinhood Markets stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $119.96, for a total value of $2,324,464.92. Following the completion of the sale, the insider directly owned 62,612 shares of the company's stock, valued at approximately $7,510,935.52. The trade was a 23.63% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have purchased 680,000 shares of company stock valued at $55,306,560 and have sold 631,263 shares valued at $66,929,157. 13.48% of the stock is currently owned by insiders.

Institutional Trading of Robinhood Markets

A number of large investors have recently made changes to their positions in the stock. Sound Income Strategies LLC lifted its holdings in shares of Robinhood Markets by 152.6% during the 4th quarter. Sound Income Strategies LLC now owns 240 shares of the company's stock valued at $26,000 after buying an additional 145 shares during the period. CYBER HORNET ETFs LLC grew its stake in shares of Robinhood Markets by 527.8% during the 4th quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company's stock valued at $26,000 after purchasing an additional 190 shares during the period. Elyxium Wealth LLC purchased a new stake in shares of Robinhood Markets during the 4th quarter valued at about $27,000. MV Capital Management Inc. bought a new position in shares of Robinhood Markets in the 4th quarter worth approximately $27,000. Finally, Swiss RE Ltd. purchased a new position in shares of Robinhood Markets in the fourth quarter worth approximately $27,000. 93.27% of the stock is currently owned by institutional investors.

About Robinhood Markets

Robinhood Markets, Inc NASDAQ: HOOD is a U.S.-based financial services company best known for its mobile-first brokerage platform that aims to "democratize finance for all." Founded in 2013 by Vladimir Tenev and Baiju Bhatt and headquartered in Menlo Park, California, the company built early traction by offering commission-free trading and a simplified user experience that attracted a large base of retail investors.

Robinhood's core products and services include a mobile app and web platform for trading U.S.

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