Robinhood Markets Sees Unusually High Options Volume (NASDAQ:HOOD)

Robinhood Markets, Inc. (NASDAQ:HOOD) was the target of some unusual options trading activity on Thursday. Stock traders purchased 192,408 call options on the company. This represents an increase of approximately 30% compared to the average volume of 148,066 call options.

Robinhood Markets Stock Up 7.1 %

Shares of Robinhood Markets stock opened at $41.67 on Friday. Robinhood Markets has a 12-month low of $10.38 and a 12-month high of $42.76. The company has a 50-day simple moving average of $29.73 and a 200 day simple moving average of $24.19. The stock has a market capitalization of $36.84 billion, a P/E ratio of 65.97, a price-to-earnings-growth ratio of 0.90 and a beta of 2.09.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings data on Wednesday, October 30th. The company reported $0.17 EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.01). The company 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%. The firm’s revenue was up 36.4% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.09) EPS. On average, equities analysts anticipate that Robinhood Markets will post 0.74 earnings per share for the current year.

Insider Activity

In other Robinhood Markets news, CEO Vladimir Tenev sold 250,000 shares of the business’s stock in a transaction that occurred on Friday, October 4th. The shares were sold at an average price of $22.88, for a total value of $5,720,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Steven M. Quirk sold 208,291 shares of the business’s stock in a transaction that occurred on Tuesday, October 8th. The stock was sold at an average price of $24.98, for a total transaction of $5,203,109.18. Following the completion of the sale, the insider now directly owns 346,020 shares of the company’s stock, valued at $8,643,579.60. This represents a 37.58 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 5,991,091 shares of company stock worth $172,716,066 over the last 90 days. 19.95% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. HM Payson & Co. boosted its stake in shares of Robinhood Markets by 53.5% in the 3rd quarter. HM Payson & Co. now owns 1,176 shares of the company’s stock valued at $28,000 after purchasing an additional 410 shares during the last quarter. True Wealth Design LLC bought a new position in shares of Robinhood Markets in the 3rd quarter valued at about $30,000. Eastern Bank acquired a new stake in shares of Robinhood Markets in the 3rd quarter valued at approximately $30,000. ORG Wealth Partners LLC acquired a new stake in shares of Robinhood Markets in the 3rd quarter valued at approximately $33,000. Finally, ORG Partners LLC acquired a new stake in shares of Robinhood Markets in the 2nd quarter valued at approximately $33,000. Institutional investors own 93.27% of the company’s stock.

Wall Street Analyst Weigh In

HOOD has been the subject of several research analyst reports. Morgan Stanley upgraded shares of Robinhood Markets from an “equal weight” rating to an “overweight” rating and upped their target price for the company from $24.00 to $55.00 in a research note on Monday, November 25th. Barclays upped their target price on shares of Robinhood Markets from $23.00 to $26.00 and gave the company an “equal weight” rating in a research note on Thursday, October 31st. The Goldman Sachs Group upgraded shares of Robinhood Markets from a “neutral” rating to a “buy” rating and increased their price objective for the company from $40.00 to $46.00 in a research note on Friday. KeyCorp increased their price objective on shares of Robinhood Markets from $30.00 to $47.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Citigroup increased their price objective on shares of Robinhood Markets from $19.00 to $23.00 and gave the company a “neutral” rating in a research note on Friday, September 27th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and eleven have assigned a buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $35.80.

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.