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

Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. 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. Robinhood Markets had a negative net margin of 29.01% and a negative return on equity of 7.87%. The business had revenue of $618.00 million during the quarter, compared to the consensus estimate of $552.74 million. During the same quarter last year, the firm earned ($0.57) earnings per share. The firm’s revenue for the quarter was up 40.1% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on HOOD. The Goldman Sachs Group boosted their price objective on shares of Robinhood Markets from $18.00 to $20.00 and gave the stock a “neutral” rating in a research note on Monday, April 15th. Needham & Company LLC reiterated a “hold” rating on shares of Robinhood Markets in a research note on Monday. Mizuho increased their price target on Robinhood Markets from $20.00 to $21.00 and gave the company a “buy” rating in a research note on Monday. Sanford C. Bernstein started coverage on shares of Robinhood Markets in a research report on Thursday, March 14th. They set an “outperform” rating and a $30.00 price objective for the company. Finally, Morgan Stanley increased their price objective on shares of Robinhood Markets from $11.00 to $18.00 and gave the company an “equal weight” rating in a research report on Tuesday, April 9th. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, Robinhood Markets presently has a consensus rating of “Hold” and an average price target of $19.04.

Insider Activity at Robinhood Markets

In other news, insider Baiju Bhatt sold 188,077 shares of the 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 sale, the insider now directly owns 36,045 shares of the company’s stock, valued at approximately $489,130.65. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In other news, insider Baiju Bhatt sold 188,077 shares of the company’s stock in a transaction that occurred on Wednesday, February 21st. The shares were sold at an average price of $13.57, for a total transaction of $2,552,204.89. Following the completion of the sale, the insider now owns 36,045 shares of the company’s stock, valued at approximately $489,130.65. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Daniel Martin Gallagher, Jr. sold 12,500 shares of Robinhood Markets stock in a transaction that occurred on Tuesday, March 5th. The shares were sold at an average price of $15.90, for a total transaction of $198,750.00. Following the completion of the transaction, the insider now directly owns 814,489 shares in the company, valued at $12,950,375.10. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 2,413,026 shares of company stock worth $38,927,267. Company insiders own 20.81% of the company’s stock.

Hedge Funds Weigh In On Robinhood Markets

A number of institutional investors have recently modified their holdings of HOOD. Angeles Wealth Management LLC boosted its stake in Robinhood Markets by 5.3% in the first quarter. Angeles Wealth Management LLC now owns 12,207 shares of the company’s stock valued at $246,000 after buying an additional 610 shares in the last quarter. 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 valued at $29,000 after purchasing an additional 722 shares in the last quarter. Commerce Bank grew its holdings in shares of Robinhood Markets by 7.9% during the 4th quarter. Commerce Bank now owns 12,459 shares of the company’s stock valued at $159,000 after purchasing an additional 917 shares during the last quarter. DekaBank Deutsche Girozentrale boosted its position in Robinhood Markets by 4.7% in the fourth quarter. DekaBank Deutsche Girozentrale now owns 23,642 shares of the company’s stock valued at $310,000 after buying an additional 1,060 shares in the last quarter. Finally, Whittier Trust Co. boosted its position in Robinhood Markets by 25.8% in the first quarter. Whittier Trust Co. now owns 5,828 shares of the company’s stock valued at $117,000 after buying an additional 1,194 shares in the last quarter. Institutional investors and hedge funds own 93.27% of the company’s stock.

Robinhood Markets Price Performance

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

About Robinhood Markets

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.