Robinhood Markets (NASDAQ:HOOD) Stock Price Up 16.6% on Analyst Upgrade

Robinhood Markets, Inc. (NASDAQ:HOOD) shares were up 16.6% during mid-day trading on Thursday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The stock traded as high as $124.88 and last traded at $124.72. Approximately 51,221,593 shares were traded during mid-day trading, an increase of 83% from the average session volume of 27,915,982 shares. The stock had previously closed at $106.99.

Other analysts have also issued reports about the company. Needham & Company LLC lowered their target price on Robinhood Markets from $123.00 to $120.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. China Renaissance assumed coverage on shares of Robinhood Markets in a research report on Tuesday, July 7th. They set a “buy” rating on the stock. Cantor Fitzgerald decreased their price objective on shares of Robinhood Markets from $130.00 to $115.00 and set an “overweight” rating on the stock in a report on Monday, August 3rd. Mizuho raised their price objective on shares of Robinhood Markets from $115.00 to $130.00 and gave the company an “outperform” rating in a research report on Thursday, July 2nd. Finally, Loop Capital set a $105.00 target price on shares of Robinhood Markets in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $122.67.

Insider Activity at Robinhood Markets

In related news, insider Steven Quirk sold 24,416 shares of the firm’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $120.33, for a total value of $2,937,977.28. Following the transaction, the insider owned 77,839 shares in the company, valued at $9,366,366.87. This trade represents a 23.88% decrease in their ownership of the stock. The transaction 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 Daniel Gallagher, Jr. sold 10,000 shares of Robinhood Markets stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $122.43, for a total value of $1,224,300.00. Following the completion of the sale, the insider owned 509,943 shares of the company’s stock, valued at approximately $62,432,321.49. The trade was a 1.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 626,283 shares of company stock valued at $69,070,083 over the last quarter. 13.48% of the stock is currently owned by corporate insiders.

More Robinhood Markets News

Here are the key news stories impacting Robinhood Markets this week:

• Positive Sentiment: Analyst sentiment remains supportive. Scotiabank initiated coverage with a bullish view, while Piper Sandler raised its price target to $145 and expects football-related event contracts to increase activity. Robinhood generated $156 million from event contracts in the second quarter. Robinhood Stock Jumps After Wave of Analysts Upgrade
• Positive Sentiment: Robinhood Chain and crypto activity are emerging growth drivers. The new blockchain reportedly generated about $3.8 million in fees on September 1, while the company now has 13 business lines with more than $100 million in annualized revenue. Deutsche Bank also sees potential upside from Robinhood’s latest crypto initiatives. Robinhood Now Runs 13 Revenue Lines Above $100 Million a Year
• Positive Sentiment: CEO Vlad Tenev said Robinhood’s newly launched Trust Accounts have attracted more than $150 million since August, suggesting early customer demand for the offering. Robinhood Trust Accounts Now Have Over $150 Million

Hedge Funds Weigh In On Robinhood Markets

Large investors have recently bought and sold shares of the business. Empowered Funds LLC grew its holdings in Robinhood Markets by 46.7% during the 1st quarter. Empowered Funds LLC now owns 49,870 shares of the company’s stock worth $2,076,000 after acquiring an additional 15,885 shares during the period. Arrowstreet Capital Limited Partnership acquired a new position in shares of Robinhood Markets in the 2nd quarter valued at $5,105,000. Federated Hermes Inc. lifted its stake in shares of Robinhood Markets by 106.2% in the 2nd quarter. Federated Hermes Inc. now owns 63,957 shares of the company’s stock valued at $5,988,000 after purchasing an additional 32,933 shares during the period. NewEdge Advisors LLC boosted its position in shares of Robinhood Markets by 19.1% in the 2nd quarter. NewEdge Advisors LLC now owns 89,676 shares of the company’s stock worth $8,396,000 after purchasing an additional 14,356 shares during the last quarter. Finally, Nebula Research & Development LLC bought a new position in shares of Robinhood Markets in the 2nd quarter worth $1,316,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

Robinhood Markets Trading Down 2.1%

The company has a debt-to-equity ratio of 0.23, a current ratio of 1.22 and a quick ratio of 1.22. The business has a 50 day moving average of $102.73 and a 200 day moving average of $88.26. The firm has a market capitalization of $109.79 billion, a price-to-earnings ratio of 53.79, a PEG ratio of 2.56 and a beta of 2.34.

Robinhood Markets (NASDAQ:HOOD) last released its earnings results on Wednesday, July 29th. The company reported $0.62 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.18. The firm had revenue of $1.31 billion for 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%.The company’s quarterly revenue was up 32.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.42 earnings per share. As a group, research analysts predict that Robinhood Markets, Inc. will post 2.08 earnings per share for the current fiscal year.

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.