Traders Purchase Large Volume of Call Options on Robinhood Markets (NASDAQ:HOOD)

Robinhood Markets, Inc. (NASDAQ:HOOD) saw unusually large options trading on Friday. Stock investors bought 218,678 call options on the stock. This is an increase of approximately 37% compared to the typical volume of 160,027 call options.

Insider Buying and Selling

In related news, CEO Vladimir Tenev sold 250,000 shares of the firm’s stock in a transaction that occurred on Monday, November 4th. The shares were sold at an average price of $24.21, for a total value of $6,052,500.00. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CTO Jeffrey Tsvi Pinner sold 5,876 shares of the business’s stock in a transaction that occurred on Friday, December 20th. The shares were sold at an average price of $37.92, for a total transaction of $222,817.92. Following the sale, the chief technology officer now owns 11,752 shares of the company’s stock, valued at $445,635.84. This trade represents a 33.33 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 3,700,658 shares of company stock valued at $140,360,682 over the last 90 days. Company insiders own 19.95% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of HOOD. Victory Capital Management Inc. lifted its position in Robinhood Markets by 9.6% during the second quarter. Victory Capital Management Inc. now owns 63,337 shares of the company’s stock valued at $1,438,000 after purchasing an additional 5,534 shares during the last quarter. American Century Companies Inc. bought a new position in shares of Robinhood Markets in the 2nd quarter valued at about $486,000. DekaBank Deutsche Girozentrale grew its position in Robinhood Markets by 110.6% in the second quarter. DekaBank Deutsche Girozentrale now owns 49,260 shares of the company’s stock worth $1,117,000 after acquiring an additional 25,875 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in Robinhood Markets by 2.9% during the second quarter. Dimensional Fund Advisors LP now owns 4,075,468 shares of the company’s stock worth $92,549,000 after acquiring an additional 112,967 shares during the last quarter. Finally, Vanguard Personalized Indexing Management LLC raised its position in Robinhood Markets by 21.8% during the second quarter. Vanguard Personalized Indexing Management LLC now owns 27,071 shares of the company’s stock valued at $615,000 after purchasing an additional 4,843 shares during the period. 93.27% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Citigroup boosted their price objective on shares of Robinhood Markets from $25.00 to $45.00 and gave the company a “neutral” rating in a research report on Friday, January 10th. Keefe, Bruyette & Woods boosted their price target on Robinhood Markets from $24.00 to $38.00 and gave the company a “market perform” rating in a report on Friday, December 20th. Needham & Company LLC reaffirmed a “buy” rating and issued a $52.00 price objective (up previously from $40.00) on shares of Robinhood Markets in a research note on Monday, December 9th. JMP Securities lifted their price objective on Robinhood Markets from $33.00 to $40.00 and gave the company a “market outperform” rating in a research report on Tuesday, November 12th. Finally, Piper Sandler increased their target price on shares of Robinhood Markets from $36.00 to $42.00 and gave the stock an “overweight” rating in a report on Monday, December 2nd. Three research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company’s stock. According to data from MarketBeat, Robinhood Markets has an average rating of “Moderate Buy” and a consensus price target of $43.07.

Robinhood Markets Stock Up 4.5 %

HOOD opened at $48.15 on Friday. The company has a market capitalization of $42.56 billion, a PE ratio of 81.61, a price-to-earnings-growth ratio of 0.58 and a beta of 2.07. The firm has a 50-day simple moving average of $38.28 and a two-hundred day simple moving average of $28.00. Robinhood Markets has a 52 week low of $10.38 and a 52 week high of $49.27.

Robinhood Markets (NASDAQ:HOOD) last announced its quarterly earnings results on Wednesday, October 30th. The company reported $0.17 EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.01). Robinhood Markets had a net margin of 21.80% and a return on equity of 7.52%. The firm had revenue of $637.00 million for the quarter, compared to the consensus estimate of $660.53 million. During the same period in the previous year, the company posted ($0.09) earnings per share. Robinhood Markets’s quarterly revenue was up 36.4% on a year-over-year basis. As a group, sell-side analysts expect that Robinhood Markets will post 0.91 earnings per share for the current 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.