Robinhood Markets (NASDAQ:HOOD) Shares Gap Up – Should You Buy?

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price gapped up before the market opened on Thursday . The stock had previously closed at $37.26, but opened at $38.54. Robinhood Markets shares last traded at $39.57, with a volume of 4,976,410 shares traded.

Analysts Set New Price Targets

A number of brokerages have recently commented on HOOD. Needham & Company LLC reiterated a “buy” rating and set a $52.00 price target (up from $40.00) on shares of Robinhood Markets in a report on Monday, December 9th. Citigroup upped their price target on shares of Robinhood Markets from $19.00 to $23.00 and gave the stock a “neutral” rating in a research report on Friday, September 27th. KeyCorp upped their price objective on Robinhood Markets from $30.00 to $47.00 and gave the stock an “overweight” rating in a report on Thursday, December 5th. JMP Securities lifted their target price on Robinhood Markets from $33.00 to $40.00 and gave the company a “market outperform” rating in a report on Tuesday, November 12th. Finally, Sanford C. Bernstein lifted their price objective on Robinhood Markets from $30.00 to $51.00 and gave the company an “outperform” rating in a research note on Wednesday, November 20th. One analyst has rated the stock with a sell rating, two have assigned a hold rating and twelve have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $39.20.

Robinhood Markets Price Performance

The firm has a market capitalization of $34.35 billion, a PE ratio of 65.87, a price-to-earnings-growth ratio of 0.81 and a beta of 2.09. The stock has a 50-day moving average price of $34.99 and a 200-day moving average price of $26.53.

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

Insider Activity at Robinhood Markets

In other news, Director Baiju Bhatt sold 98,404 shares of the business’s 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 sale, the director now owns 2,521 shares of the company’s stock, valued at approximately $66,554.40. The trade was a 97.50 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Vladimir Tenev sold 250,000 shares of the firm’s stock in a transaction dated Friday, October 4th. The shares were sold at an average price of $22.88, for a total value of $5,720,000.00. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 6,307,772 shares of company stock valued at $187,743,158. Corporate insiders own 19.95% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Toronto Dominion Bank grew its holdings in shares of Robinhood Markets by 31.1% in the 3rd quarter. Toronto Dominion Bank now owns 68,408 shares of the company’s stock worth $1,602,000 after acquiring an additional 16,219 shares during the last quarter. Baker Avenue Asset Management LP increased its stake 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 worth $10,874,000 after purchasing an additional 203,354 shares in the last quarter. Bridgewater Associates LP lifted its stake in Robinhood Markets by 100.4% during the third quarter. Bridgewater Associates LP now owns 330,956 shares of the company’s stock valued at $7,751,000 after buying an additional 165,791 shares in the last quarter. Sanctuary Advisors LLC lifted its position in shares of Robinhood Markets by 44.1% in the 3rd quarter. Sanctuary Advisors LLC now owns 63,216 shares of the company’s stock valued at $1,481,000 after acquiring an additional 19,345 shares in the last quarter. Finally, EULAV Asset Management grew its position in Robinhood Markets by 22.2% during the 3rd quarter. EULAV Asset Management now owns 550,000 shares of the company’s stock worth $12,881,000 after purchasing an additional 100,000 shares in the last quarter. Institutional investors and hedge funds own 93.27% of the company’s stock.

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.