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

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price gapped up prior to trading on Thursday . The stock had previously closed at $106.99, but opened at $113.80. Robinhood Markets shares last traded at $119.3380, with a volume of 12,713,606 shares changing hands.

Key Headlines Impacting Robinhood Markets

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

• Positive Sentiment: Analyst sentiment remains supportive. Scotiabank initiated coverage with a bullish view, while Piper Sandler raised its price target to $145 and expects football-related event contracts to increase activity. Robinhood generated $156 million from event contracts in the second quarter. Robinhood Stock Jumps After Wave of Analysts Upgrade
• Positive Sentiment: Robinhood Chain and crypto activity are emerging growth drivers. The new blockchain reportedly generated about $3.8 million in fees on September 1, while the company now has 13 business lines with more than $100 million in annualized revenue. Deutsche Bank also sees potential upside from Robinhood’s latest crypto initiatives. Robinhood Now Runs 13 Revenue Lines Above $100 Million a Year
• Positive Sentiment: CEO Vlad Tenev said Robinhood’s newly launched Trust Accounts have attracted more than $150 million since August, suggesting early customer demand for the offering. Robinhood Trust Accounts Now Have Over $150 Million

Analysts Set New Price Targets

HOOD has been the topic of a number of recent analyst reports. The Goldman Sachs Group decreased their target price on Robinhood Markets from $137.00 to $118.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft increased their target price on Robinhood Markets from $105.00 to $113.00 and gave the company a “buy” rating in a report on Tuesday, June 30th. BTIG Research reaffirmed a “buy” rating and set a $125.00 target price on shares of Robinhood Markets in a research note on Thursday, July 30th. China Renaissance initiated coverage on shares of Robinhood Markets in a report on Tuesday, July 7th. They issued a “buy” rating for the company. Finally, Cantor Fitzgerald decreased their target price on shares of Robinhood Markets from $130.00 to $115.00 and set an “overweight” rating on the stock in a research note on Monday, August 3rd. Twenty-three investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Robinhood Markets has a consensus rating of “Moderate Buy” and a consensus price target of $122.67.

Robinhood Markets Stock Down 2.1%

The stock has a market capitalization of $109.79 billion, a price-to-earnings ratio of 53.79, a PEG ratio of 2.56 and a beta of 2.34. The business has a fifty day moving average of $102.73 and a 200 day moving average of $88.26. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.22 and a quick ratio of 1.22.

Robinhood Markets (NASDAQ:HOOD) last posted its earnings results on Wednesday, July 29th. The company reported $0.62 EPS for the quarter, beating analysts’ consensus estimates of $0.44 by $0.18. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%.The company had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter in the previous year, the business earned $0.42 earnings per share. The company’s revenue for the quarter was up 32.5% on a year-over-year basis. As a group, equities analysts predict that Robinhood Markets, Inc. will post 2.08 earnings per share for the current year.

Insider Buying and Selling

In other Robinhood Markets news, insider Steven M. Quirk sold 24,416 shares of the company’s 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 directly owned 77,839 shares in the company, valued at $9,366,366.87. This represents a 23.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of Robinhood Markets stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $90.42, for a total transaction of $904,200.00. Following the completion of the transaction, the insider owned 461,396 shares of the company’s stock, valued at $41,719,426.32. This trade represents a 2.12% 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. Insiders have sold a total of 626,283 shares of company stock valued at $69,070,083 over the last three months. Company insiders own 13.48% of the company’s stock.

Institutional Investors Weigh In On Robinhood Markets

Large investors have recently modified their holdings of the company. California State Teachers Retirement System grew its stake in shares of Robinhood Markets by 9,976.4% during the second quarter. California State Teachers Retirement System now owns 113,132,988 shares of the company’s stock worth $11,344,976,000 after purchasing an additional 112,010,233 shares in the last quarter. State Street Corp lifted its holdings in Robinhood Markets by 2.7% during the 4th quarter. State Street Corp now owns 33,121,452 shares of the company’s stock worth $3,746,036,000 after buying an additional 875,297 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Robinhood Markets by 1.7% during the 4th quarter. Geode Capital Management LLC now owns 21,171,925 shares of the company’s stock worth $2,386,944,000 after acquiring an additional 356,902 shares in the last quarter. Morgan Stanley increased its holdings in shares of Robinhood Markets by 23.9% in the 4th quarter. Morgan Stanley now owns 10,683,776 shares of the company’s stock valued at $1,208,335,000 after acquiring an additional 2,061,832 shares during the last quarter. Finally, Norges Bank acquired a new stake in shares of Robinhood Markets during the 4th quarter worth about $1,202,160,000. 93.27% of the stock is owned by hedge funds and other 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.