Key Points
- Robinhood insider sale: Director Daniel Martin Gallagher, Jr. sold 10,000 shares of Robinhood Markets at an average price of $83.68, totaling $836,800. The sale was made under a pre-arranged Rule 10b5-1 trading plan.
- Mixed operating results: Robinhood recently reported quarterly EPS of $0.38, slightly below estimates, while revenue of $1.07 billion also missed forecasts. Even so, revenue rose 15.1% year over year and profitability remained strong.
- Wall Street remains constructive: Analysts largely maintain a positive view, with 19 Buy ratings and a consensus Moderate Buy rating. The average price target stands at $106.54, above the stock’s recent trading level.
Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) insider Daniel Martin Gallagher, Jr. sold 10,000 shares of Robinhood Markets stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $83.68, for a total value of $836,800.00. Following the sale, the insider owned 481,396 shares of the company's stock, valued at approximately $40,283,217.28. This represents a 2.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Robinhood Markets Price Performance
Shares of Robinhood Markets stock opened at $82.47 on Friday. The firm has a market cap of $74.27 billion, a price-to-earnings ratio of 39.84, a P/E/G ratio of 2.64 and a beta of 2.35. Robinhood Markets, Inc. has a 52-week low of $63.51 and a 52-week high of $153.86. The stock has a 50-day simple moving average of $78.09 and a 200-day simple moving average of $93.03.
Robinhood Markets (NASDAQ:HOOD - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.01). The firm had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.14 billion. Robinhood Markets had a net margin of 41.12% and a return on equity of 21.39%. The firm's quarterly revenue was up 15.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.37 earnings per share. As a group, equities research analysts predict that Robinhood Markets, Inc. will post 1.85 earnings per share for the current year.
Wall Street Analyst Weigh In
Several equities research analysts recently weighed in on the company. Mizuho boosted their target price on Robinhood Markets from $110.00 to $115.00 and gave the stock an "outperform" rating in a report on Friday, May 29th. Barclays reduced their target price on Robinhood Markets from $89.00 to $82.00 and set an "overweight" rating for the company in a report on Wednesday, April 29th. Wolfe Research upgraded Robinhood Markets from a "peer perform" rating to an "outperform" rating and set a $125.00 target price for the company in a report on Monday, February 9th. Morgan Stanley reduced their target price on Robinhood Markets from $147.00 to $95.00 and set an "equal weight" rating for the company in a report on Friday, April 10th. Finally, KeyCorp restated an "overweight" rating and issued a $100.00 target price on shares of Robinhood Markets in a report on Monday, June 1st. Nineteen equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Robinhood Markets presently has a consensus rating of "Moderate Buy" and an average target price of $106.54.
Get Our Latest Analysis on HOOD
Robinhood Markets News Roundup
Here are the key news stories impacting Robinhood Markets this week:
- Positive Sentiment: Director Meyer Malka bought 181,000 shares for about $15.1 million, a notable insider purchase that signals confidence in Robinhood’s outlook and helped support sentiment around the stock.
- Positive Sentiment: Robinhood is getting a fresh growth narrative from its plan to open SpaceX IPO access to everyday investors, which could attract new users, deposits, and more engagement on the platform. Article Title
- Positive Sentiment: FINRA’s elimination of the pattern day trader rule removes a major barrier for small-account traders, which could broaden Robinhood’s addressable market and increase trading activity. Article Title
- Positive Sentiment: Goldman Sachs raised its price target on HOOD to $105 and kept a buy rating, reinforcing a constructive view on the stock despite recent volatility.
- Positive Sentiment: Robinhood continues expanding beyond basic brokerage with advisor-network, AI, and wealth-management initiatives, which investors may see as a path to higher-quality recurring revenue. Article Title
Institutional Inflows and Outflows
A number of large investors have recently modified their holdings of the business. Vanguard Group Inc. lifted its holdings in shares of Robinhood Markets by 1.4% during the fourth quarter. Vanguard Group Inc. now owns 95,771,497 shares of the company's stock worth $10,831,756,000 after buying an additional 1,334,443 shares during the last quarter. State Street Corp lifted its holdings in shares of Robinhood Markets by 2.7% during the fourth 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 lifted its holdings in shares of Robinhood Markets by 1.7% during the fourth quarter. Geode Capital Management LLC now owns 21,171,925 shares of the company's stock worth $2,386,944,000 after buying an additional 356,902 shares during the last quarter. Morgan Stanley lifted its holdings in shares of Robinhood Markets by 23.9% during the fourth quarter. Morgan Stanley now owns 10,683,776 shares of the company's stock worth $1,208,335,000 after buying an additional 2,061,832 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of Robinhood Markets during the fourth quarter valued at approximately $1,202,160,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.
Robinhood Markets Company Profile
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Get Free Report)
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.
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