In less than a year of public trading, Robinhood Markets (NASDAQ:HOOD) shares have been on a wild ride. Here’s a look at where shares stand today and how far away the stock is from its all-time highs.
What Happened: The highly anticipated Robinhood IPO occurred in July 2021. Shares priced at $38, which was at the bottom end of the expected range.
Shares closed down on the first day of trading before rocketing higher over the next week, hitting an all-time high of $85 in early August.
Over the last 52-weeks, shares of Robinhood have traded between $6.81 to $85.
Shares recently got several lifts from reports of interest in the company by FTX and its co-founder Sam Bankman-Fried.
Bankman-Fried acquired a 7.6% stake in Robinhood in May, sending shares higher on the potential of him buying a larger stake down the road or a partnership with FTX.
On Monday, Robinhood shares spiked on a Bloomberg report of FTX being interested in acquiring Robinhood.
Bankman-Fried said Monday that FTX remains on the sidelines, but is open to a partnership with Robinhood.
“We are excited about Robinhood’s business prospects and potential ways we could partner with them, and I have always been impressed by the business that Vlad and his team have built,” Bankman-Fried said in a statement to TechCrunch. “That being said there are no active M&A conversations with Robinhood.”
With Robinhood trading below its IPO price and M&A activity in the brokerage space increasing, the company could find itself being a target of rumors and discussions. A buyout would likely send Robinhood shares higher, but could fall short of all-time high prices.
Related Link: Robinhood Q1 Earnings Highlights: EPS And Revenue Miss, Monthly Active Users Fall
Investing $100 in Robinhood: A $100 investment in Robinhood today could buy 10.95 shares of HOOD.
If Robinhood returns to its all-time highs of $85, the $100 investment would be worth $930.75. This would represent a return of 831%.
While the 52-week high might be out of reach, a return to the IPO price of $38 would make the same $100 investment worth $416.10.
Photo courtesy of Robinhood.
