Robinhood Markets (NASDAQ:HOOD) Stock Price Up 5.6% – Time to Buy?

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) shot up 5.6% on Friday . The company traded as high as $99.44 and last traded at $98.69. Approximately 44,320,551 shares were traded during mid-day trading, an increase of 45% from the average session volume of 30,597,084 shares. The stock had previously closed at $93.47.

Key Headlines Impacting Robinhood Markets

Here are the key news stories impacting Robinhood Markets this week:

• Positive Sentiment: BTIG initiated coverage on Robinhood with a Buy rating and a $125 price target, arguing the company has a long runway for asset growth, product expansion, and deeper customer engagement as younger investors accumulate more wealth. Article Title
• Positive Sentiment: Robinhood closed its $2.2 billion offering of 0.00% convertible senior notes due 2029, saying the deal boosts strategic flexibility and includes capped calls and share repurchases intended to limit dilution for shareholders. Article Title
• Positive Sentiment: Robinhood is also getting attention for product and subscriber-growth initiatives, including promotions aimed at boosting its Gold user base, which supports the case for expanding recurring revenue. Article Title
• Neutral Sentiment: Market chatter showed Robinhood traders piling into the REX FANG & Innovation Equity Premium Income ETF (FEPI), reflecting strong retail interest on the platform but not directly changing Robinhood’s fundamentals. Article Title
• Negative Sentiment: Earlier weakness came after reports that Meta Platforms is developing a competing prediction-markets app, which raised competitive concerns for one of Robinhood’s newer growth areas. Article Title

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on HOOD shares. Argus lifted their price objective on Robinhood Markets from $90.00 to $110.00 and gave the stock a “buy” rating in a research note on Wednesday, June 17th. Keefe, Bruyette & Woods reduced their target price on Robinhood Markets from $75.00 to $65.00 and set a “market perform” rating on the stock in a report on Wednesday, April 29th. Citigroup restated a “market outperform” rating on shares of Robinhood Markets in a research report on Thursday, May 28th. Mizuho increased their price target on shares of Robinhood Markets from $110.00 to $115.00 and gave the company an “outperform” rating in a research report on Friday, May 29th. Finally, Jefferies Financial Group reduced their price objective on shares of Robinhood Markets from $88.00 to $84.00 and set a “buy” rating on the stock in a research note on Monday, April 6th. Nineteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $112.91.

Robinhood Markets Price Performance

The stock has a market capitalization of $88.87 billion, a price-to-earnings ratio of 47.68, a PEG ratio of 1.79 and a beta of 2.35. The business has a 50 day simple moving average of $85.63 and a 200-day simple moving average of $90.35.

Robinhood Markets (NASDAQ:HOOD) last released its quarterly earnings data on Tuesday, April 28th. The company reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.01). Robinhood Markets had a net margin of 41.12% and a return on equity of 21.39%. The business had revenue of $1.07 billion for the quarter, compared to the consensus estimate of $1.14 billion. During the same quarter last year, the firm earned $0.37 EPS. The company’s revenue for the quarter was up 15.1% on a year-over-year basis. As a group, equities analysts predict that Robinhood Markets, Inc. will post 1.8 earnings per share for the current year.

Insider Transactions at Robinhood Markets

In related news, Director Meyer Malka purchased 250,000 shares of Robinhood Markets stock in a transaction dated Friday, June 5th. The stock was bought at an average price of $80.74 per share, for a total transaction of $20,185,000.00. Following the completion of the acquisition, the director directly owned 3,924,427 shares of the company’s stock, valued at $316,858,235.98. This represents a 6.80% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Vladimir Tenev sold 375,000 shares of the stock in a transaction on Monday, April 6th. The stock was sold at an average price of $69.83, for a total transaction of $26,186,250.00. Following the sale, the chief executive officer directly owned 375,000 shares of the company’s stock, valued at $26,186,250. This represents a 50.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have purchased 680,000 shares of company stock valued at $55,306,560 and have sold 633,484 shares valued at $47,542,923. Corporate insiders own 14.47% of the company’s stock.

Institutional Trading of Robinhood Markets

A number of institutional investors have recently modified their holdings of the company. Truist Financial Corp boosted its position in shares of Robinhood Markets by 88.9% during the 4th quarter. Truist Financial Corp now owns 145,489 shares of the company’s stock worth $16,455,000 after acquiring an additional 68,458 shares in the last quarter. PNC Financial Services Group Inc. lifted its stake in Robinhood Markets by 86.2% during the fourth quarter. PNC Financial Services Group Inc. now owns 100,849 shares of the company’s stock worth $11,406,000 after purchasing an additional 46,688 shares during the last quarter. Wealth Enhancement Advisory Services LLC increased its stake in shares of Robinhood Markets by 26.3% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 365,551 shares of the company’s stock valued at $44,477,000 after purchasing an additional 76,075 shares during the last quarter. Capital Wealth Planning LLC grew its position in Robinhood Markets by 238.5% in the third quarter. Capital Wealth Planning LLC now owns 48,438 shares of the company’s stock valued at $6,935,000 after acquiring an additional 34,129 shares during the last quarter. Finally, Virtus Wealth Solutions LLC acquired a new position in Robinhood Markets during the 3rd quarter worth approximately $11,074,000. 93.27% of the stock is currently owned by institutional investors.

Robinhood Markets Company Profile

Robinhood Markets, Inc (NASDAQ: HOOD) is a U.S.-based financial services company best known for its mobile-first brokerage platform that aims to “democratize finance for all.” Founded in 2013 by Vladimir Tenev and Baiju Bhatt and headquartered in Menlo Park, California, the company built early traction by offering commission-free trading and a simplified user experience that attracted a large base of retail investors.

Robinhood’s core products and services include a mobile app and web platform for trading U.S.