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

Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. 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 traded.

The company reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.05 by $0.13. The business had revenue of $618.00 million during the quarter, compared to the consensus estimate of $552.74 million. Robinhood Markets had a negative net margin of 29.01% and a negative return on equity of 7.87%. The business’s quarterly revenue was up 40.1% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.57) earnings per share.

Wall Street Analysts Forecast Growth

HOOD has been the topic of several recent analyst reports. TheStreet raised Robinhood Markets from a “d+” rating to a “c-” rating in a report on Wednesday, February 28th. Citigroup downgraded Robinhood Markets from a “neutral” rating to a “sell” rating and upped their target price for the company from $13.00 to $16.00 in a report on Thursday, April 11th. KeyCorp lifted their price target on Robinhood Markets from $22.00 to $23.00 and gave the stock an “overweight” rating in a research note on Monday, April 22nd. Sanford C. Bernstein assumed coverage on shares of Robinhood Markets in a research note on Thursday, March 14th. They set an “outperform” rating and a $30.00 price objective for the company. Finally, Mizuho raised their target price on shares of Robinhood Markets from $20.00 to $21.00 and gave the stock a “buy” rating in a report on Monday. Three analysts have rated the stock with a sell rating, seven have given a hold rating and four have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $19.35.

Insider Activity at Robinhood Markets

In related news, CFO Jason Warnick sold 5,000 shares of Robinhood Markets stock in a transaction dated Monday, February 12th. The stock was sold at an average price of $12.00, for a total transaction of $60,000.00. Following the sale, the chief financial officer now directly owns 916,267 shares of the company’s stock, valued at $10,995,204. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. In other Robinhood Markets news, CFO Jason Warnick sold 5,000 shares of Robinhood Markets stock in a transaction on Monday, February 12th. The shares were sold at an average price of $12.00, for a total transaction of $60,000.00. Following the completion of the sale, the chief financial officer now owns 916,267 shares of the company’s stock, valued at approximately $10,995,204. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Vladimir Tenev sold 500,000 shares of the company’s stock in a transaction on Monday, February 26th. The shares were sold at an average price of $15.12, for a total transaction of $7,560,000.00. The disclosure for this sale can be found here. Insiders sold a total of 2,413,026 shares of company stock worth $38,927,267 in the last 90 days. 20.81% of the stock is owned by company insiders.

Institutional Investors Weigh In On Robinhood Markets

Institutional investors have recently made changes to their positions in the company. Spire Wealth Management acquired a new stake in shares of Robinhood Markets in the 4th quarter valued at approximately $26,000. Peoples Bank KS purchased a new position in Robinhood Markets during the 3rd quarter worth $29,000. PNC Financial Services Group Inc. boosted its stake in shares of Robinhood Markets by 46.5% in the 4th quarter. PNC Financial Services Group Inc. now owns 2,275 shares of the company’s stock worth $29,000 after buying an additional 722 shares during the last quarter. UniSuper Management Pty Ltd bought a new position in Robinhood Markets in the 3rd quarter valued at $30,000. Finally, Allspring Global Investments Holdings LLC purchased a new stake in Robinhood Markets during the first quarter worth about $34,000. Institutional investors own 93.27% of the company’s stock.

Robinhood Markets Trading Down 3.1 %

The business’s fifty day moving average is $17.83 and its 200 day moving average is $13.43. The company has a market cap of $15.13 billion, a P/E ratio of -28.83 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.