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

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) gapped up prior to trading 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.

Analysts Set New Price Targets

HOOD has been the topic of several research reports. Citigroup lifted their price target on shares of Robinhood Markets from $19.00 to $23.00 and gave the company a “neutral” rating in a report on Friday, September 27th. JPMorgan Chase & Co. lifted their price target on Robinhood Markets from $17.00 to $21.00 and gave the company an “underweight” rating in a research note on Thursday, October 17th. Sanford C. Bernstein upped 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. Barclays upgraded shares of Robinhood Markets from an “equal weight” rating to an “overweight” rating and raised their price objective for the company from $26.00 to $49.00 in a report on Monday, December 9th. Finally, The Goldman Sachs Group upgraded shares of Robinhood Markets from a “neutral” rating to a “buy” rating and upped their price target for the company from $40.00 to $46.00 in a research report on Friday, December 6th. One analyst has rated the stock with a sell rating, two have given a hold rating and twelve have given a buy rating to the stock. According to MarketBeat, Robinhood Markets currently has a consensus rating of “Moderate Buy” and a consensus target price of $39.20.

Robinhood Markets Stock Performance

The business has a 50 day moving average price of $35.52 and a 200-day moving average price of $26.76. The company has a market capitalization of $36.55 billion, a price-to-earnings ratio of 70.09, a P/E/G ratio of 0.81 and a beta of 2.09.

Robinhood Markets (NASDAQ:HOOD) last posted its quarterly 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 for the quarter, compared to the consensus estimate of $660.53 million. Robinhood Markets had a return on equity of 7.52% and a net margin of 21.80%. Robinhood Markets’s quarterly revenue was up 36.4% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.09) earnings per share. As a group, equities analysts predict that Robinhood Markets, Inc. will post 0.8 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Vladimir Tenev sold 250,000 shares of the stock in a transaction that occurred on Monday, November 4th. The stock was sold at an average price of $24.21, for a total transaction of $6,052,500.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Steven M. Quirk sold 208,291 shares of Robinhood Markets stock in a transaction on Tuesday, October 8th. The stock was sold at an average price of $24.98, for a total value of $5,203,109.18. Following the sale, the insider now owns 346,020 shares in the company, valued at $8,643,579.60. The trade was a 37.58 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 6,807,772 shares of company stock valued at $211,393,158 over the last ninety days. 19.95% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in HOOD. HM Payson & Co. boosted its holdings in Robinhood Markets by 53.5% in the 3rd quarter. HM Payson & Co. now owns 1,176 shares of the company’s stock worth $28,000 after buying an additional 410 shares during the period. Eastern Bank bought a new position in Robinhood Markets in the 3rd quarter valued at $30,000. True Wealth Design LLC bought a new position in shares of Robinhood Markets in the third quarter worth $30,000. ORG Wealth Partners LLC purchased a new stake in shares of Robinhood Markets in the third quarter worth $33,000. Finally, International Assets Investment Management LLC bought a new stake in Robinhood Markets during the second quarter valued at $40,000. Institutional investors own 93.27% of the company’s stock.

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.