Robinhood Markets (NASDAQ:HOOD) Trading Up 3% - Here's Why

Key Points

• Robinhood Markets (NASDAQ:HOOD) saw a stock increase of 3% to around $104.98, with trading volume significantly down by 69% compared to its average.
• Recent analyst upgrades have raised price targets for Robinhood, with Piper Sandler increasing it to $110.00 and Morgan Stanley matching that target, reflecting a positive sentiment for the stock.
• In the last quarterly earnings report, Robinhood reported a 50% year-over-year revenue growth of $927 million but missed EPS estimates.
• Insiders, including CEO Vladimir Tenev, sold significant amounts of stock recently, estimating insider ownership is now at 14.47%.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) was up 3% during trading on Friday . The company traded as high as $105.68 and last traded at $104.98. Approximately 13,070,826 shares changed hands during trading, a decline of 69% from the average daily volume of 41,561,902 shares. The stock had previously closed at $101.93.

Analyst Ratings Changes

A number of equities research analysts recently commented on HOOD shares. Piper Sandler increased their price target on Robinhood Markets from $70.00 to $110.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 15th. JPMorgan Chase & Co. increased their price objective on Robinhood Markets from $44.00 to $47.00 and gave the company a "neutral" rating in a research report on Thursday, May 1st. 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 research report on Tuesday, July 15th. Cantor Fitzgerald increased their price objective on Robinhood Markets from $89.00 to $100.00 and gave the company an "overweight" rating in a research report on Tuesday, July 1st. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $71.00 price objective on shares of Robinhood Markets in a research report on Tuesday, May 27th. One 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's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $85.29.

Robinhood Markets Trading Up 3.5%

The company has a 50 day simple moving average of $82.09 and a 200-day simple moving average of $59.27. The stock has a market cap of $93.40 billion, a price-to-earnings ratio of 60.04, a P/E/G ratio of 5.21 and a beta of 2.36.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its quarterly earnings results on Wednesday, April 30th. The company reported $0.37 EPS for the quarter, missing analysts' consensus estimates of $0.41 by ($0.04). Robinhood Markets had a return on equity of 15.42% and a net margin of 48.77%. The business had revenue of $927.00 million for the quarter, compared to the consensus estimate of $917.12 million. During the same quarter in the previous year, the business posted $0.18 EPS. The company's revenue for the quarter was up 50.0% on a year-over-year basis. Equities analysts forecast that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Vladimir Tenev sold 750,000 shares of the business's 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Steven M. Quirk sold 104,887 shares of the business's stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of $70.14, for a total value of $7,356,774.18. Following the completion of the sale, the insider owned 228,621 shares of the company's stock, valued at approximately $16,035,476.94. This trade represents a 31.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 2,696,644 shares of company stock valued at $218,696,575. 14.47% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of HOOD. Vanguard Personalized Indexing Management LLC raised its position in Robinhood Markets by 29.9% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 58,609 shares of the company's stock worth $5,488,000 after purchasing an additional 13,477 shares during the last quarter. Asset Planning Inc acquired a new stake in Robinhood Markets during the 2nd quarter worth about $400,000. Apollon Wealth Management LLC acquired a new stake in shares of Robinhood Markets in the 2nd quarter valued at about $1,017,000. Hemington Wealth Management grew its stake in shares of Robinhood Markets by 22.5% in the 2nd quarter. Hemington Wealth Management now owns 779 shares of the company's stock valued at $72,000 after buying an additional 143 shares during the period. Finally, SLT Holdings LLC acquired a new stake in shares of Robinhood Markets in the 2nd quarter valued at about $538,000. 93.27% of the stock is currently owned by institutional investors.

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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