A History of Outperforming Analyst Forecasts and Beating the Odds: Robinhood Markets Inc. (HOOD)

With 5.06 million shares changed hands, the volume of the stock remained lighter than its average volume of 6.84 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $8.74 whereas the lowest price it dropped to was $8.58. The 52-week range on HOOD shows that it touched its highest point at $12.76 and its lowest point at $6.81 during that stretch. It currently has a 1-year price target of $11.61.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HOOD was down-trending over the past week, with a drop of -0.23%, but this was down by -2.49% over a month. Three-month performance dropped to -10.32% while six-month performance fell -5.39%. The stock lost -5.60% in the past year, while it has gained 5.65% so far this year. A look at the trailing 12-month EPS for HOOD yields -1.29 with Next year EPS estimates of -0.05. For the next quarter, that number is -0.01. This implies an EPS growth rate of 73.30% for this year and 92.10% for next year.

Float and Shares Shorts:

At present, 896.92 million HOOD shares are outstanding with a float of 697.57 million shares on hand for trading. On Apr 27, 2023, short shares totaled 34.1 million, which was 3.81% higher than short shares on Mar 30, 2023. In addition to Mr. Vladimir Tenev as the firm’s Co-Founder, Pres, CEO & Chairman, Mr. Steven M. Quirk serves as its Chief Brokerage Officer.

Institutional Ownership:

Other institutions hold 20.56% of HOOD, in contrast to 20.52% held by mutual funds. Shares owned by individuals account for 17.66%. As the largest shareholder in HOOD with 7.12% of the stake, The Vanguard Group, Inc. holds 54,686,506 shares worth 54,686,506. A second-largest stockholder of HOOD, ARK Investment Management LLC, holds 31,734,313 shares, controlling over 4.13% of the firm’s shares. Nikko Asset Management Co., Ltd. is the third largest shareholder in HOOD, holding 24,315,031 shares or 3.17% stake. With a 2.48% stake in HOOD, the ARK Innovation ETF is the largest stakeholder. A total of 19,073,999 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.48% of HOOD stock, is the second-largest Mutual Fund holder. It holds 19,032,973 shares valued at 168.44 million. Vanguard Small Cap Index Fund holds 2.08% of the stake in HOOD, owning 16,010,094 shares worth 141.69 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, HOOD reported revenue of $318.00M and operating income of -$292.00M. The EBITDA in the recently reported quarter was -$275.00M and diluted EPS was -$0.34.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HOOD since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With HOOD analysts setting a high price target of $25.00 and a low target of $8.00, the average target price over the next 12 months is $11.69. Based on these targets, HOOD could surge 190.7% to reach the target high and fall by -6.98% to reach the target low. Reaching the average price target will result in a growth of 35.93% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded HOOD stock several times over the past three months with 21 Buys and 17 Sells. In these transactions, 757,812 shares were bought while 686,106 shares were sold. The number of buy transactions has increased to 86 while that of sell transactions has risen to 75 over the past year. The total number of shares bought during that period was 3,217,720 while 11,812,452 shares were sold.

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