Robinhood Markets (NASDAQ:HOOD) Shares Gap Up on Better-Than-Expected Earnings

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price gapped up prior to trading 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 changing hands.

The company reported $0.18 EPS for the quarter, beating the consensus estimate of $0.05 by $0.13. The company had revenue of $618.00 million for 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 firm’s revenue was up 40.1% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.57) EPS.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. TheStreet raised Robinhood Markets from a “d+” rating to a “c-” rating in a research note on Wednesday, February 28th. Keefe, Bruyette & Woods started coverage on shares of Robinhood Markets in a report on Wednesday, April 3rd. They issued a “market perform” rating and a $20.00 price target on the stock. Sanford C. Bernstein started coverage on shares of Robinhood Markets in a research note on Thursday, March 14th. They issued an “outperform” rating and a $30.00 price target on the stock. The Goldman Sachs Group boosted their price objective on shares of Robinhood Markets from $18.00 to $20.00 and gave the company a “neutral” rating in a research report on Monday, April 15th. Finally, Morgan Stanley raised their target price on shares of Robinhood Markets from $11.00 to $18.00 and gave the stock an “equal weight” rating in a research report on Tuesday, April 9th. Three research analysts have rated the stock with a sell rating, seven have given a hold rating and four have issued a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $19.35.

Insider Buying and Selling at Robinhood Markets

In other news, CFO Jason Warnick sold 5,000 shares of the business’s stock in a transaction on Monday, February 12th. The stock was sold at an average price of $12.00, for a total value of $60,000.00. Following the completion of the transaction, the chief financial officer now directly owns 916,267 shares of the company’s stock, valued at approximately $10,995,204. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. In other Robinhood Markets news, insider Baiju Bhatt sold 188,077 shares of the firm’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 value of $2,552,204.89. Following the completion of the sale, the insider now directly owns 36,045 shares in the company, valued at $489,130.65. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Jason Warnick sold 5,000 shares of Robinhood Markets stock in a transaction on Monday, February 12th. The stock was sold at an average price of $12.00, for a total transaction of $60,000.00. Following the completion of the transaction, the chief financial officer now directly owns 916,267 shares in the company, valued at $10,995,204. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 2,413,026 shares of company stock valued at $38,927,267. 20.81% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Robinhood Markets

Several institutional investors have recently added to or reduced their stakes in the business. Robeco Institutional Asset Management B.V. purchased a new position in Robinhood Markets during the 3rd quarter worth approximately $231,000. Raymond James & Associates raised its stake in shares of Robinhood Markets by 7.0% during the 3rd quarter. Raymond James & Associates now owns 31,847 shares of the company’s stock valued at $312,000 after buying an additional 2,070 shares during the last quarter. Raymond James Financial Services Advisors Inc. lifted its holdings in shares of Robinhood Markets by 33.3% in the 3rd quarter. Raymond James Financial Services Advisors Inc. now owns 16,647 shares of the company’s stock valued at $163,000 after buying an additional 4,163 shares during the period. Bank of New York Mellon Corp boosted its stake in shares of Robinhood Markets by 15.5% in the third quarter. Bank of New York Mellon Corp now owns 2,419,817 shares of the company’s stock worth $23,738,000 after buying an additional 325,506 shares during the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its holdings in Robinhood Markets by 6,764.6% during the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 63,635 shares of the company’s stock worth $624,000 after acquiring an additional 62,708 shares during the period. Institutional investors and hedge funds own 93.27% of the company’s stock.

Robinhood Markets Stock Down 3.1 %

The company has a market capitalization of $15.13 billion, a PE ratio of -28.83 and a beta of 1.74. The firm has a 50-day moving average of $17.83 and a two-hundred day moving average of $13.43.

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.