Shares of Robinhood Markets Inc (NASDAQ:HOOD) are taking a breather Monday morning as investors digest the stock’s recent rise to all-time highs. Here’s what investors need to know.
What To Know: The quiet session follows a period of intense upward momentum for the financial technology company, headlined by more than 25% gains over the past month and nearly 300% gains year-to-date. Last week, the stock surged following a series of bullish analyst notes and impressive growth metrics.
Bank of America raised its price target on Robinhood to $157 last week, citing strong client asset growth and expanding service offerings. The price target increase followed positive updates from Needham and Morgan Stanley. Robinhood currently has a consensus Buy rating from analysts with an average price target around $110.
A key driver of the optimism is the explosive growth of Robinhood’s new prediction markets. CEO Vlad Tenev recently highlighted that these event contracts have surpassed four billion trades since inception, with two billion occurring in the third quarter alone.
The business is now reportedly on an annualized revenue pace exceeding $200 million. This rapid adoption, coupled with a 112% year-over-year increase in total platform assets to $304 billion, has fueled recent investor confidence in the company’s growth trajectory.
Benzinga Edge Rankings: Underscoring the stock’s powerful recent run, Benzinga Edge rankings show Robinhood with a nearly perfect momentum score of 98.99.
HOOD Price Action: Robinhood Markets shares were down 0.98% at $147.21 at the time of publication Monday, according to Benzinga Pro. The stock opened at 52-week highs around $153.85 before pulling back and turning negative.
The stock is well above its 50-day moving average of $114.47, indicating strong bullish momentum, but the upper end of its 52-week range could act as potential resistance moving forward.
Read Also: Gold Will Reach $5,000 Next Year, $10,000 By 2030: Ed Yardeni
How To Buy HOOD Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Robinhood Markets’ case, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
Image: Shutterstock
