Investors Purchase Large Volume of Call Options on Robinhood Markets (NASDAQ:HOOD)

Robinhood Markets, Inc. (NASDAQ:HOOD) was the recipient of unusually large options trading activity on Wednesday. Stock traders bought 174,025 call options on the company. This is an increase of approximately 44% compared to the typical volume of 121,260 call options.

Robinhood Markets Stock Down 16.7 %

NASDAQ:HOOD opened at $23.49 on Friday. The business’s 50-day moving average price is $23.39 and its 200 day moving average price is $21.35. The firm has a market cap of $20.78 billion, a P/E ratio of 71.18 and a beta of 1.84. Robinhood Markets has a 52-week low of $7.91 and a 52-week high of $28.58.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings results on Wednesday, October 30th. The company reported $0.17 earnings per share for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.01). The company had revenue of $637.00 million during the quarter, compared to analysts’ expectations of $660.53 million. Robinhood Markets had a return on equity of 4.25% and a net margin of 12.96%. The company’s revenue for the quarter was up 36.4% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.09) EPS. Sell-side analysts expect that Robinhood Markets will post 0.74 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on HOOD. Needham & Company LLC reiterated a “hold” rating on shares of Robinhood Markets in a research note on Thursday. Bank of America lifted their price objective on shares of Robinhood Markets from $28.00 to $32.00 and gave the company a “buy” rating in a research note on Monday, August 12th. Keefe, Bruyette & Woods cut their price objective on shares of Robinhood Markets from $23.00 to $22.00 and set a “market perform” rating on the stock in a research note on Thursday, August 8th. The Goldman Sachs Group lifted their price objective on shares of Robinhood Markets from $22.50 to $25.00 and gave the company a “neutral” rating in a research note on Monday, October 14th. Finally, Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Robinhood Markets from $24.00 to $27.00 and gave the company a “buy” rating in a research note on Monday, September 30th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and eight have assigned a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $25.37.

Insiders Place Their Bets

In other Robinhood Markets news, insider Daniel Martin Gallagher, Jr. sold 12,500 shares of Robinhood Markets stock in a transaction on Tuesday, September 3rd. The shares were sold at an average price of $19.33, for a total value of $241,625.00. Following the completion of the transaction, the insider now owns 1,045,068 shares of the company’s stock, valued at $20,201,164.44. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. In other Robinhood Markets news, Director Baiju Bhatt sold 98,404 shares of the firm’s stock in a transaction on Thursday, October 17th. The stock was sold at an average price of $26.40, for a total value of $2,597,865.60. Following the sale, the director now directly owns 2,521 shares in the company, valued at approximately $66,554.40. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Daniel Martin Gallagher, Jr. sold 12,500 shares of the firm’s stock in a transaction on Tuesday, September 3rd. The shares were sold at an average price of $19.33, for a total value of $241,625.00. Following the completion of the sale, the insider now owns 1,045,068 shares in the company, valued at $20,201,164.44. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 4,639,654 shares of company stock valued at $110,241,632 over the last 90 days. 19.95% of the stock is owned by company insiders.

Hedge Funds Weigh In On Robinhood Markets

Institutional investors have recently bought and sold shares of the stock. HM Payson & Co. increased its stake in Robinhood Markets by 53.5% in the 3rd quarter. HM Payson & Co. now owns 1,176 shares of the company’s stock worth $28,000 after purchasing an additional 410 shares in the last quarter. PNC Financial Services Group Inc. grew its stake in Robinhood Markets by 46.5% during the 4th quarter. PNC Financial Services Group Inc. now owns 2,275 shares of the company’s stock valued at $29,000 after acquiring an additional 722 shares in the last quarter. Eastern Bank purchased a new position in Robinhood Markets during the 3rd quarter valued at about $30,000. ORG Partners LLC purchased a new position in Robinhood Markets during the 2nd quarter valued at about $33,000. Finally, ORG Wealth Partners LLC purchased a new position in Robinhood Markets during the 3rd quarter valued at about $33,000. Hedge funds and other institutional investors own 93.27% of the company’s stock.

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.