Robinhood Markets (NASDAQ:HOOD) Shares Up 16.6% – Time to Buy?

Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock price traded up 16.6% on Thursday . The stock traded as high as $124.88 and last traded at $124.72. 51,221,593 shares traded hands during trading, an increase of 83% from the average session volume of 27,915,982 shares. The stock had previously closed at $106.99.

Robinhood Markets News Summary

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

• Positive Sentiment: Analyst upgrades and higher price targets: Morgan Stanley upgraded Robinhood to Overweight and raised its price target to $150 from $124, arguing that investors may be underestimating the company’s ability to increase revenue from existing customers and newer businesses. Scotiabank initiated coverage with a Sector Outperform rating and a $136 target. Morgan Stanley upgrade article
• Positive Sentiment: Football prediction markets could drive activity: Piper Sandler expects trading volume at Rothera, Robinhood’s joint venture with Susquehanna, to grow ahead of football season. Robinhood management also confirmed that Rothera received Commodity Futures Trading Commission approval to offer contracts covering football wins and point spreads. Piper Sandler football prediction markets article
• Positive Sentiment: Technical momentum and options demand: IBD reported that HOOD broke above a buy zone as analysts became more constructive on its growth outlook. Options activity also surged, with traders purchasing bullish calls as Robinhood’s prediction-markets business gains visibility. IBD Robinhood breakout article
• Positive Sentiment: Robinhood Chain adoption is accelerating: Reports cited rising tokenized-asset value, stock-token market share and trading volume shortly after the chain’s mainnet launch. These metrics support the long-term growth narrative around tokenized securities and blockchain-based trading. Robinhood Chain tokenized value article

Wall Street Analyst Weigh In

HOOD has been the topic of a number of research analyst reports. Needham & Company LLC cut their target price on Robinhood Markets from $123.00 to $120.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Piper Sandler restated an “overweight” rating and set a $145.00 price target (up from $135.00) on shares of Robinhood Markets in a research note on Wednesday. Deutsche Bank Aktiengesellschaft lifted their price target on Robinhood Markets from $105.00 to $113.00 and gave the stock a “buy” rating in a research report on Tuesday, June 30th. China Renaissance started coverage on Robinhood Markets in a research note on Tuesday, July 7th. They issued a “buy” rating for the company. Finally, Cantor Fitzgerald decreased their price objective on Robinhood Markets from $130.00 to $115.00 and set an “overweight” rating for the company in a report on Monday, August 3rd. Twenty-three analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $122.67.

Robinhood Markets Stock Performance

The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.23. The firm has a market capitalization of $112.13 billion, a PE ratio of 54.94, a PEG ratio of 2.13 and a beta of 2.34. The stock’s 50 day moving average price is $101.64 and its two-hundred day moving average price is $87.67.

Robinhood Markets (NASDAQ:HOOD) last announced its earnings results on Wednesday, July 29th. The company reported $0.62 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.18. The firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.29 billion. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. The firm’s revenue for the quarter was up 32.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.42 EPS. On average, equities analysts expect that Robinhood Markets, Inc. will post 2.07 earnings per share for the current year.

Insider Buying and Selling at Robinhood Markets

In other Robinhood Markets news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the firm’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $90.42, for a total value of $904,200.00. Following the transaction, the insider directly owned 461,396 shares of the company’s stock, valued at $41,719,426.32. This trade represents a 2.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Baiju Bhatt sold 50,317 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $96.80, for a total value of $4,870,685.60. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 591,867 shares of company stock worth $64,907,806. 13.48% of the stock is currently owned by company insiders.

Institutional Trading of Robinhood Markets

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. CYBER HORNET ETFs LLC grew its stake in Robinhood Markets by 527.8% in the fourth quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company’s stock worth $26,000 after purchasing an additional 190 shares in the last quarter. Elyxium Wealth LLC bought a new stake in Robinhood Markets in the fourth quarter valued at about $27,000. MV Capital Management Inc. acquired a new stake in Robinhood Markets during the fourth quarter valued at approximately $27,000. C M Bidwell & Associates Ltd. acquired a new stake in Robinhood Markets during the second quarter valued at approximately $27,000. Finally, Swiss RE Ltd. bought a new position in Robinhood Markets during the 4th quarter worth approximately $27,000. Institutional investors own 93.27% of the company’s stock.

About Robinhood Markets

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.