Robinhood Markets (NASDAQ:HOOD) Stock Price Up 11.8% on Strong Earnings

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) were up 11.8% on Thursday following a stronger than expected earnings report. The stock traded as high as $66.91 and last traded at $62.53. Approximately 43,068,475 shares were traded during mid-day trading, an increase of 91% from the average daily volume of 22,551,186 shares. The stock had previously closed at $55.91.

The company reported $0.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.41 by $0.13. Robinhood Markets had a net margin of 21.80% and a return on equity of 7.52%.

Wall Street Analyst Weigh In

HOOD has been the topic of several recent analyst reports. JMP Securities lifted their target price on shares of Robinhood Markets from $60.00 to $77.00 and gave the stock a “market outperform” rating in a research report on Thursday. Needham & Company LLC lifted their price target on Robinhood Markets from $52.00 to $70.00 and gave the stock a “buy” rating in a report on Thursday. The Goldman Sachs Group upgraded Robinhood Markets from a “neutral” rating to a “buy” rating and upped their price objective for the company from $40.00 to $46.00 in a research note on Friday, December 6th. Raymond James initiated coverage on Robinhood Markets in a research report on Wednesday, February 5th. They set a “market perform” rating for the company. Finally, JPMorgan Chase & Co. boosted their price target on shares of Robinhood Markets from $39.00 to $45.00 and gave the stock a “neutral” rating in a report on Thursday. Four equities research analysts have rated the stock with a hold rating and twelve have given a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $57.07.

Insider Transactions at Robinhood Markets

In other news, Director Baiju Bhatt sold 186,514 shares of the firm’s stock in a transaction on Wednesday, December 11th. The shares were sold at an average price of $38.13, for a total transaction of $7,111,778.82. Following the sale, the director now owns 2,521 shares in the company, valued at approximately $96,125.73. This trade represents a 98.67 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Vladimir Tenev sold 750,000 shares of Robinhood Markets stock in a transaction that occurred on Thursday, January 2nd. The stock was sold at an average price of $39.16, for a total value of $29,370,000.00. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 3,948,427 shares of company stock valued at $165,005,244. 19.95% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Robinhood Markets

Several institutional investors have recently added to or reduced their stakes in the company. New Wave Wealth Advisors LLC purchased a new position in shares of Robinhood Markets in the fourth quarter valued at about $26,000. HM Payson & Co. grew its stake in shares of Robinhood Markets by 53.5% in the third quarter. HM Payson & Co. now owns 1,176 shares of the company’s stock worth $28,000 after purchasing an additional 410 shares during the last quarter. Eastern Bank purchased a new position in Robinhood Markets during the 3rd quarter valued at about $30,000. True Wealth Design LLC purchased a new position in Robinhood Markets during the 3rd quarter valued at about $30,000. Finally, Creative Financial Designs Inc. ADV raised its position in Robinhood Markets by 750.0% during the 4th quarter. Creative Financial Designs Inc. ADV now owns 850 shares of the company’s stock valued at $32,000 after purchasing an additional 750 shares during the last quarter. Hedge funds and other institutional investors own 93.27% of the company’s stock.

Robinhood Markets Price Performance

The company has a 50 day moving average price of $44.48 and a 200-day moving average price of $31.90. The stock has a market capitalization of $55.17 billion, a PE ratio of 105.87, a PEG 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.