Robinhood Markets (NASDAQ:HOOD) Stock Jumps 3% – Here’s Why

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price traded up 3% during mid-day trading on Monday. The stock traded as high as $85.34 and last traded at $83.32. 15,025,427 shares were traded during mid-day trading, a decline of 43% from the average session volume of 26,391,055 shares. The stock had previously closed at $80.91.

Robinhood Markets News Roundup

Investors following HOOD have been watching these news items:

• Positive Sentiment: Recent operating metrics highlight growth in newer businesses: Robinhood Chain generated $26 million in revenue in its first quarter on mainnet, while event-contract revenue reached $173 million in Q3, more than six times the year-earlier level. Robinhood’s Latest Earnings Report Tells You All You Need to Know About the Future of Crypto
• Neutral Sentiment: A report says OKX and ICE plan to offer tokenized stock trading, including Robinhood shares. The development could expand access to tokenized equities, but its competitive and business impact for Robinhood is not yet clear. Robinhood Lets OKX-ICE Tokenize Its Shares While 90% of Targeted Companies Opt Out
• Negative Sentiment: Hotter-than-expected inflation data pressured Bitcoin and crypto-exposed trading platforms, raising concern that weaker crypto prices or activity could weigh on Robinhood’s transaction-related revenue. Inflation data drags Bitcoin and crypto-exposed trading platforms lower

Wall Street Analyst Weigh In

Several research firms have weighed in on HOOD. Wall Street Zen cut Robinhood Markets from a “hold” rating to a “strong sell” rating in a research note on Sunday, November 1st. Benchmark upgraded Robinhood Markets to a “strong-buy” rating in a report on Wednesday, September 9th. Mizuho increased their price target on shares of Robinhood Markets from $130.00 to $140.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 9th. Needham & Company LLC decreased their price target on shares of Robinhood Markets from $126.00 to $116.00 and set a “buy” rating for the company in a report on Wednesday, October 28th. Finally, CICC Research raised their price target on shares of Robinhood Markets from $100.00 to $110.00 and gave the stock an “outperform” rating in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $126.45.

Robinhood Markets Stock Up 4.0%

The company has a debt-to-equity ratio of 0.26, a current ratio of 1.24 and a quick ratio of 1.24. The business has a 50 day simple moving average of $105.08 and a 200 day simple moving average of $92.06. The stock has a market cap of $76.16 billion, a PE ratio of 38.98, a P/E/G ratio of 1.86 and a beta of 2.56.

Robinhood Markets (NASDAQ:HOOD) last posted its quarterly earnings results on Wednesday, October 28th. The company reported $0.60 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.04. The company had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $1.44 billion. Robinhood Markets had a return on equity of 21.49% and a net margin of 39.04%. The business’s quarterly revenue was up 11.5% on a year-over-year basis. During the same period last year, the business earned $0.61 EPS. On average, equities research analysts forecast that Robinhood Markets, Inc. will post 2.10 EPS for the current fiscal year.

Insider Activity

In other Robinhood Markets news, Director Baiju Bhatt sold 50,912 shares of the business’s stock in a transaction that occurred on Wednesday, October 21st. The shares were sold at an average price of $101.40, for a total value of $5,162,476.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven M. Quirk sold 24,416 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $120.33, for a total transaction of $2,937,977.28. Following the transaction, the insider owned 77,839 shares in the company, valued at approximately $9,366,366.87. This trade represents a 23.88% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,095,820 shares of company stock valued at $128,775,816. 13.48% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Robinhood Markets

Institutional investors and hedge funds have recently modified their holdings of the business. Crossmark Global Holdings Inc. increased its position in Robinhood Markets by 0.4% during the third quarter. Crossmark Global Holdings Inc. now owns 27,405 shares of the company’s stock worth $3,083,000 after buying an additional 102 shares during the last quarter. Lake Street Private Wealth LLC lifted its position in shares of Robinhood Markets by 0.3% in the third quarter. Lake Street Private Wealth LLC now owns 43,899 shares of the company’s stock worth $4,939,000 after buying an additional 114 shares during the last quarter. Parkside Financial Bank & Trust lifted its position in shares of Robinhood Markets by 11.9% in the second quarter. Parkside Financial Bank & Trust now owns 1,089 shares of the company’s stock worth $109,000 after buying an additional 116 shares during the last quarter. Root Financial Partners LLC boosted its stake in shares of Robinhood Markets by 5.4% during the 3rd quarter. Root Financial Partners LLC now owns 2,510 shares of the company’s stock worth $282,000 after acquiring an additional 129 shares in the last quarter. Finally, Brookstone Capital Management boosted its stake in shares of Robinhood Markets by 2.5% during the 3rd quarter. Brookstone Capital Management now owns 5,230 shares of the company’s stock worth $588,000 after acquiring an additional 129 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 a digital financial services platform that gives customers access to investing and financial products through its website and mobile app. Its offerings include trading in stocks, exchange-traded funds, options and cryptocurrencies, as well as retirement accounts and cash-management services. Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood built its business around making financial services more accessible through a mobile-first platform. The company is headquartered in Menlo Park, California, and serves customers in the United States and select international markets.