Stock Traders Purchase Large Volume of Robinhood Markets Call Options (NASDAQ:HOOD)

Robinhood Markets, Inc. (NASDAQ:HOOD) was the target of unusually large options trading activity on Monday. Stock investors bought 205,071 call options on the stock. This represents an increase of 47% compared to the typical volume of 139,242 call options.

Robinhood Markets Price Performance

Shares of HOOD stock traded up $2.68 during trading hours on Monday, reaching $35.00. The company had a trading volume of 35,016,953 shares, compared to its average volume of 16,074,260. The company has a 50 day moving average of $25.47 and a 200 day moving average of $22.37. The firm has a market cap of $30.94 billion, a price-to-earnings ratio of 58.20, a P/E/G ratio of 0.77 and a beta of 1.84. Robinhood Markets has a 1-year low of $7.96 and a 1-year high of $35.62.

Robinhood Markets (NASDAQ:HOOD) last released its quarterly earnings results on Wednesday, October 30th. The company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.01). Robinhood Markets had a net margin of 21.80% and a return on equity of 7.52%. The firm had revenue of $637.00 million during the quarter, compared to analyst estimates of $660.53 million. During the same period in the prior year, the business earned ($0.09) EPS. The business’s revenue for the quarter was up 36.4% compared to the same quarter last year. As a group, sell-side analysts forecast that Robinhood Markets will post 0.72 EPS for the current fiscal year.

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 that occurred on Tuesday, September 3rd. The shares were sold at an average price of $19.33, for a total transaction of $241,625.00. Following 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 1.18 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Vladimir Tenev sold 250,000 shares of the business’s stock in a transaction on Wednesday, September 4th. The stock was sold at an average price of $19.26, for a total transaction of $4,815,000.00. The disclosure for this sale can be found here. In the last ninety days, insiders sold 4,710,549 shares of company stock worth $115,477,194. 19.95% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in HOOD. Allspring Global Investments Holdings LLC grew its stake in shares of Robinhood Markets by 1,211,858.7% during the third quarter. Allspring Global Investments Holdings LLC now owns 3,817,670 shares of the company’s stock worth $89,410,000 after buying an additional 3,817,355 shares during the last quarter. Azora Capital LP acquired a new stake in shares of Robinhood Markets in the 3rd quarter worth about $79,780,000. FMR LLC raised its holdings in shares of Robinhood Markets by 31.3% in the 3rd quarter. FMR LLC now owns 14,129,544 shares of the company’s stock worth $330,914,000 after acquiring an additional 3,368,118 shares during the last quarter. Renaissance Technologies LLC raised its holdings in shares of Robinhood Markets by 37.7% in the 2nd quarter. Renaissance Technologies LLC now owns 7,651,700 shares of the company’s stock worth $173,770,000 after acquiring an additional 2,094,800 shares during the last quarter. Finally, Geode Capital Management LLC increased its stake in Robinhood Markets by 19.5% in the 3rd quarter. Geode Capital Management LLC now owns 11,620,673 shares of the company’s stock valued at $271,708,000 after buying an additional 1,895,427 shares during the last quarter. 93.27% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on HOOD. Needham & Company LLC upgraded shares of Robinhood Markets from a “hold” rating to a “buy” rating and set a $40.00 price target on the stock in a report on Monday. Morgan Stanley raised their price objective on shares of Robinhood Markets from $22.00 to $24.00 and gave the stock an “equal weight” rating in a research note on Monday, November 11th. KeyCorp raised their price objective on shares of Robinhood Markets from $25.00 to $30.00 and gave the stock an “overweight” rating in a research note on Monday, October 21st. JMP Securities increased their target price on Robinhood Markets from $33.00 to $40.00 and gave the company a “market outperform” rating in a research report on Tuesday, November 12th. Finally, Deutsche Bank Aktiengesellschaft increased their target price on Robinhood Markets from $27.00 to $32.00 and gave the company a “buy” rating in a research report on Monday, November 11th. One analyst has rated the stock with a sell rating, six have issued a hold rating and nine have given a buy rating to the company’s stock. According to MarketBeat.com, Robinhood Markets has an average rating of “Moderate Buy” and an average price target of $27.34.

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.