Robinhood Markets (NASDAQ:HOOD) Trading Up 4.7% on Analyst Upgrade

Key Points

• Robinhood Markets' share price rose by 4.7% after Needham & Company upgraded their price target from $120.00 to $145.00, maintaining a buy rating on the stock.
• Analysts have given the stock a consensus rating of "Moderate Buy" with an average price target of $105.63, with notable upgrades from several firms in recent reports.
• Insider selling activity included the sale of over 4.9 million shares in the past three months, with directors significantly reducing their ownership stakes in the company.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s share price traded up 4.7% on Tuesday after Needham & Company LLC raised their price target on the stock from $120.00 to $145.00. Needham & Company LLC currently has a buy rating on the stock. Robinhood Markets traded as high as $143.62 and last traded at $143.18. 50,414,155 shares changed hands during mid-day trading, an increase of 19% from the average session volume of 42,290,871 shares. The stock had previously closed at $136.72.

A number of other analysts also recently weighed in on HOOD. Cantor Fitzgerald upped their price target on shares of Robinhood Markets from $100.00 to $118.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Redburn Atlantic restated a "sell" rating and issued a $48.00 price objective (up from $40.00) on shares of Robinhood Markets in a research report on Monday, June 9th. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Robinhood Markets from $70.00 to $85.00 and gave the company a "buy" rating in a report on Monday, June 9th. Compass Point upped their price target on shares of Robinhood Markets from $64.00 to $96.00 and gave the company a "buy" rating in a research report on Friday, June 27th. Finally, Mizuho raised their target price on shares of Robinhood Markets from $120.00 to $145.00 and gave the company an "outperform" rating in a report on Wednesday, September 10th. Eleven equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $105.63.

Insiders Place Their Bets

In related news, 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 completion of the transaction, the director directly owned 3,976,234 shares in the company, valued at approximately $413,011,425.58. This represents a 21.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Baiju Bhatt sold 418,338 shares of the stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $119.42, for a total value of $49,957,923.96. The disclosure for this sale can be found here. Over the last three months, insiders sold 4,931,462 shares of company stock valued at $511,774,417. Insiders own 19.95% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Universal Beteiligungs und Servicegesellschaft mbH bought a new stake in Robinhood Markets during the 4th quarter valued at approximately $4,886,000. Wellington Management Group LLP bought a new position in Robinhood Markets during the fourth quarter worth about $588,000. MassMutual Private Wealth & Trust FSB lifted its holdings in shares of Robinhood Markets by 139.9% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 854 shares of the company's stock valued at $36,000 after purchasing an additional 498 shares in the last quarter. AdvisorNet Financial Inc boosted its position in Robinhood Markets by 103.0% during the first quarter. AdvisorNet Financial Inc now owns 6,846 shares of the company's stock valued at $285,000 after purchasing an additional 3,474 shares during the last quarter. Finally, GAMMA Investing LLC increased its position in Robinhood Markets by 5,733.0% during the first quarter. GAMMA Investing LLC now owns 341,700 shares of the company's stock worth $14,222,000 after buying an additional 335,842 shares during the last quarter. Hedge funds and other institutional investors own 93.27% of the company's stock.

Robinhood Markets Price Performance

The business has a 50-day simple moving average of $111.13 and a two-hundred day simple moving average of $80.02. The stock has a market cap of $127.24 billion, a price-to-earnings ratio of 72.68, a P/E/G ratio of 4.34 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 EPS for the quarter, beating the consensus estimate of $0.30 by $0.12. The company had revenue of $989.00 million for the quarter, compared to the consensus estimate of $893.93 million. Robinhood Markets had a return on equity of 17.48% and a net margin of 50.13%.The firm's revenue for the quarter was up 45.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.21 earnings per share. As a group, equities analysts anticipate that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

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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