Robinhood Markets (NASDAQ:HOOD) Shares Gap Up on Analyst Upgrade

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price gapped up before the market opened on Tuesday after Barclays raised their price target on the stock from $49.00 to $54.00. The stock had previously closed at $39.59, but opened at $41.80. Barclays currently has an overweight rating on the stock. Robinhood Markets shares last traded at $42.33, with a volume of 4,721,941 shares.

A number of other research firms have also weighed in on HOOD. Citigroup raised their target price on shares of Robinhood Markets from $25.00 to $45.00 and gave the stock a “neutral” rating in a research note on Friday, January 10th. Deutsche Bank Aktiengesellschaft boosted their price objective on Robinhood Markets from $36.00 to $42.00 and gave the stock a “buy” rating in a research note on Thursday, December 5th. Needham & Company LLC reaffirmed a “buy” rating and issued a $52.00 target price (up from $40.00) on shares of Robinhood Markets in a research note on Monday, December 9th. Morgan Stanley raised shares of Robinhood Markets from an “equal weight” rating to an “overweight” rating and boosted their price target for the company from $24.00 to $55.00 in a research report on Monday, November 25th. Finally, Keefe, Bruyette & Woods lifted their target price on shares of Robinhood Markets from $24.00 to $38.00 and gave the stock a “market perform” rating in a research note on Friday, December 20th. Three investment analysts have rated the stock with a hold rating and twelve have given a buy rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $42.47.

Insider Activity at Robinhood Markets

In related news, Director Baiju Bhatt sold 98,404 shares of Robinhood Markets stock in a transaction on Thursday, October 17th. The stock was sold at an average price of $26.40, for a total value of $2,597,865.60. Following the completion of the transaction, the director now directly owns 2,521 shares in the company, valued at approximately $66,554.40. This trade represents a 97.50 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Meyer Malka sold 1,535,681 shares of the company’s stock in a transaction dated Wednesday, December 4th. The stock was sold at an average price of $40.11, for a total value of $61,596,164.91. Following the sale, the director now owns 4,974,238 shares in the company, valued at approximately $199,516,686.18. This trade represents a 23.59 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 3,708,196 shares of company stock worth $138,845,043. 19.95% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Robinhood Markets

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Allspring Global Investments Holdings LLC lifted its stake in Robinhood Markets by 1,211,858.7% in the third quarter. Allspring Global Investments Holdings LLC now owns 3,817,670 shares of the company’s stock worth $89,410,000 after acquiring an additional 3,817,355 shares during the last quarter. Azora Capital LP purchased a new stake in shares of Robinhood Markets during the 3rd quarter worth $79,780,000. FMR LLC grew its stake in shares of Robinhood Markets by 31.3% during the third quarter. FMR LLC now owns 14,129,544 shares of the company’s stock worth $330,914,000 after purchasing an additional 3,368,118 shares in the last quarter. Assenagon Asset Management S.A. increased its holdings in Robinhood Markets by 486.5% in the fourth quarter. Assenagon Asset Management S.A. now owns 2,788,666 shares of the company’s stock valued at $103,906,000 after buying an additional 2,313,213 shares during the last quarter. Finally, Geode Capital Management LLC raised its stake in Robinhood Markets by 19.5% in the third quarter. Geode Capital Management LLC now owns 11,620,673 shares of the company’s stock valued at $271,708,000 after buying an additional 1,895,427 shares in the last quarter. 93.27% of the stock is owned by institutional investors and hedge funds.

Robinhood Markets Price Performance

The stock has a 50 day simple moving average of $37.63 and a two-hundred day simple moving average of $27.75. The company has a market capitalization of $36.91 billion, a price-to-earnings ratio of 70.78, a PEG ratio of 0.81 and a beta of 2.07.

Robinhood Markets (NASDAQ:HOOD) last posted its earnings results on Wednesday, October 30th. The company reported $0.17 earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.01). The business had revenue of $637.00 million for the quarter, compared to analysts’ expectations of $660.53 million. Robinhood Markets had a return on equity of 7.52% and a net margin of 21.80%. Robinhood Markets’s revenue for the quarter was up 36.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.09) EPS. Equities research analysts predict that Robinhood Markets, Inc. will post 0.8 EPS for the current year.

About Robinhood Markets

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.