Robinhood Markets (NASDAQ:HOOD) Shares Gap Up on Earnings Beat

Robinhood Markets, Inc. (NASDAQ:HOOD) shares gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $55.91, but opened at $62.09. Robinhood Markets shares last traded at $63.48, with a volume of 27,765,770 shares trading hands.

The company reported $0.54 EPS for the quarter, beating the consensus estimate of $0.41 by $0.13. Robinhood Markets had a net margin of 21.80% and a return on equity of 7.52%.

Analyst Ratings Changes

A number of research analysts have recently issued reports on HOOD shares. JPMorgan Chase & Co. lifted their price objective on shares of Robinhood Markets from $39.00 to $45.00 and gave the stock a “neutral” rating in a research report on Thursday. Morgan Stanley boosted their target price on shares of Robinhood Markets from $64.00 to $90.00 and gave the stock an “overweight” rating in a research report on Thursday. The Goldman Sachs Group raised shares of Robinhood Markets from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $40.00 to $46.00 in a research report on Friday, December 6th. JMP Securities upped their price objective on shares of Robinhood Markets from $60.00 to $77.00 and gave the company a “market outperform” rating in a report on Thursday. Finally, Raymond James initiated coverage on shares of Robinhood Markets in a report on Wednesday, February 5th. They issued a “market perform” rating on the stock. Four research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $58.07.

Insiders Place Their Bets

In other news, insider Daniel Martin Gallagher, Jr. sold 300,000 shares of the stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $37.51, for a total transaction of $11,253,000.00. Following the sale, the insider now owns 806,955 shares of the company’s stock, valued at approximately $30,268,882.05. This represents a 27.10 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Vladimir Tenev sold 750,000 shares of the firm’s stock in a transaction that occurred on Thursday, January 2nd. The shares were sold at an average price of $39.16, for a total transaction of $29,370,000.00. The disclosure for this sale can be found here. Insiders sold a total of 3,948,427 shares of company stock valued at $165,005,244 over the last 90 days. 19.95% of the stock is owned by company insiders.

Institutional Trading of Robinhood Markets

Several hedge funds have recently added to or reduced their stakes in HOOD. Toronto Dominion Bank increased its stake in Robinhood Markets by 31.1% in the third quarter. Toronto Dominion Bank now owns 68,408 shares of the company’s stock valued at $1,602,000 after purchasing an additional 16,219 shares during the last quarter. Everence Capital Management Inc. purchased a new position in shares of Robinhood Markets during the fourth quarter worth approximately $634,000. Atomi Financial Group Inc. grew its position in Robinhood Markets by 20.7% in the 4th quarter. Atomi Financial Group Inc. now owns 540,910 shares of the company’s stock valued at $20,154,000 after buying an additional 92,613 shares during the last quarter. Requisite Capital Management LLC purchased a new position in Robinhood Markets in the 4th quarter valued at $266,000. Finally, Baker Avenue Asset Management LP grew its position in Robinhood Markets by 77.9% in the 3rd quarter. Baker Avenue Asset Management LP now owns 464,306 shares of the company’s stock valued at $10,874,000 after buying an additional 203,354 shares during the last quarter. Institutional investors and hedge funds own 93.27% of the company’s stock.

Robinhood Markets Stock Performance

The business’s 50-day moving average is $44.98 and its two-hundred day moving average is $32.13. The stock has a market capitalization of $56.40 billion, a PE ratio of 108.14, a price-to-earnings-growth ratio of 0.73 and a beta of 2.13.

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.