Robinhood Markets (NASDAQ:HOOD) Stock Price Up 16.6% Following Analyst Upgrade

Robinhood Markets, Inc. (NASDAQ:HOOD) shares rose 16.6% on Thursday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The company traded as high as $124.88 and last traded at $124.72. Approximately 51,221,593 shares traded hands during mid-day trading, an increase of 83% from the average session volume of 27,915,982 shares. The stock had previously closed at $106.99.

Several other equities analysts also recently commented on the company. Barclays dropped their price objective on Robinhood Markets from $122.00 to $105.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. Piper Sandler reissued an “overweight” rating and issued a $145.00 target price (up from $135.00) on shares of Robinhood Markets in a research report on Wednesday. Argus raised their target price on Robinhood Markets from $90.00 to $110.00 and gave the stock a “buy” rating in a research report on Wednesday, June 17th. Sanford C. Bernstein boosted their target price on Robinhood Markets from $130.00 to $160.00 and gave the company an “outperform” rating in a research note on Monday, July 20th. Finally, The Goldman Sachs Group dropped their price target 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. One research analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $122.67.

Insider Activity

In other Robinhood Markets news, CFO Shiv Verma sold 3,982 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $95.07, for a total transaction of $378,568.74. Following the sale, the chief financial officer owned 51,963 shares in the company, valued at $4,940,122.41. This represents a 7.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven Quirk sold 24,416 shares of Robinhood Markets stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $120.33, for a total value of $2,937,977.28. Following the completion of the transaction, the insider owned 77,839 shares of the company’s stock, valued at approximately $9,366,366.87. This trade represents a 23.88% decrease in their ownership of the stock. 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 have sold 626,283 shares of company stock valued at $69,070,083. 13.48% of the stock is currently owned by corporate insiders.

Key Robinhood Markets News

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

Institutional Investors Weigh In On Robinhood Markets

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Parkside Financial Bank & Trust boosted its position in shares of Robinhood Markets by 11.9% in the second quarter. Parkside Financial Bank & Trust now owns 1,089 shares of the company’s stock valued at $109,000 after acquiring an additional 116 shares during the period. Tucker Asset Management LLC bought a new stake in Robinhood Markets during the 2nd quarter worth approximately $536,000. Groupe la Francaise bought a new stake in Robinhood Markets during the 2nd quarter worth approximately $5,544,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Robinhood Markets in the 2nd quarter worth approximately $6,918,000. Finally, California State Teachers Retirement System lifted its stake in Robinhood Markets by 9,976.4% in the 2nd 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. 93.27% of the stock is currently owned by institutional investors.

Robinhood Markets Stock Performance

The company’s fifty day simple moving average is $102.73 and its 200 day simple moving average is $88.26. 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 stock has a market capitalization of $109.79 billion, a P/E ratio of 53.79, a P/E/G ratio of 2.56 and a beta of 2.34.

Robinhood Markets (NASDAQ:HOOD) last released its quarterly 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. The firm had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.29 billion. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. The business’s revenue for the quarter was up 32.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.42 EPS. As a group, sell-side analysts forecast that Robinhood Markets, Inc. will post 2.08 earnings per share for the current fiscal year.

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.