Robinhood Markets (NASDAQ:HOOD) Shares Gap Up on Earnings Beat

Robinhood Markets, Inc. (NASDAQ:HOOD) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $17.85, but opened at $19.04. Robinhood Markets shares last traded at $18.18, with a volume of 10,195,175 shares.

The company reported $0.18 earnings per share for the quarter, beating analysts’ consensus estimates of $0.05 by $0.13. The business had revenue of $618.00 million during the quarter, compared to analyst estimates of $552.74 million. Robinhood Markets had a negative return on equity of 7.87% and a negative net margin of 29.01%. Robinhood Markets’s revenue was up 40.1% on a year-over-year basis. During the same period in the previous year, the company posted ($0.57) EPS.

Analysts Set New Price Targets

HOOD has been the subject of a number of recent analyst reports. TheStreet raised Robinhood Markets from a “d+” rating to a “c-” rating in a research report on Wednesday, February 28th. Mizuho lifted their target price on shares of Robinhood Markets from $20.00 to $21.00 and gave the stock a “buy” rating in a research note on Monday. Deutsche Bank Aktiengesellschaft upped their price target on shares of Robinhood Markets from $12.00 to $16.00 and gave the company a “hold” rating in a research note on Tuesday, March 19th. Morgan Stanley lifted their price objective on shares of Robinhood Markets from $11.00 to $18.00 and gave the stock an “equal weight” rating in a research note on Tuesday, April 9th. Finally, Keefe, Bruyette & Woods began coverage on Robinhood Markets in a research report on Wednesday, April 3rd. They issued a “market perform” rating and a $20.00 target price on the stock. Three research analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $19.04.

Insider Activity

In other Robinhood Markets news, insider Baiju Bhatt sold 188,077 shares of the business’s stock in a transaction on Wednesday, February 21st. The shares were sold at an average price of $13.57, for a total value of $2,552,204.89. Following the completion of the transaction, the insider now owns 36,045 shares in the company, valued at $489,130.65. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In other news, CFO Jason Warnick sold 5,000 shares of the firm’s stock in a transaction on Monday, February 12th. The shares were sold at an average price of $12.00, for a total value of $60,000.00. Following the sale, the chief financial officer now directly owns 916,267 shares in the company, valued at approximately $10,995,204. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Baiju Bhatt sold 188,077 shares of the business’s stock in a transaction on Wednesday, February 21st. The stock was sold at an average price of $13.57, for a total transaction of $2,552,204.89. Following the transaction, the insider now owns 36,045 shares of the company’s stock, valued at approximately $489,130.65. The disclosure for this sale can be found here. Over the last quarter, insiders sold 2,413,026 shares of company stock valued at $38,927,267. 20.81% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in HOOD. Vanguard Group Inc. increased its stake in Robinhood Markets by 4.5% in the third quarter. Vanguard Group Inc. now owns 57,261,184 shares of the company’s stock valued at $561,732,000 after purchasing an additional 2,459,702 shares during the last quarter. ARK Investment Management LLC increased its holdings in shares of Robinhood Markets by 6.4% in the 4th quarter. ARK Investment Management LLC now owns 34,936,204 shares of the company’s stock valued at $445,087,000 after acquiring an additional 2,101,325 shares during the period. Sumitomo Mitsui Trust Holdings Inc. raised its position in Robinhood Markets by 9.4% in the 4th quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 29,205,693 shares of the company’s stock valued at $372,081,000 after purchasing an additional 2,517,012 shares during the last quarter. Nikko Asset Management Americas Inc. boosted its stake in Robinhood Markets by 9.6% during the 4th quarter. Nikko Asset Management Americas Inc. now owns 28,297,822 shares of the company’s stock worth $360,514,000 after purchasing an additional 2,486,986 shares during the period. Finally, Norges Bank purchased a new position in Robinhood Markets during the 4th quarter worth $84,165,000. 93.27% of the stock is owned by institutional investors and hedge funds.

Robinhood Markets Price Performance

The business’s 50 day simple moving average is $17.82 and its 200 day simple moving average is $13.40. The company has a market capitalization of $15.72 billion, a price-to-earnings ratio of -29.75 and a beta of 1.74.

Robinhood Markets Company Profile

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.