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Robinhood Shares (NASDAQ: HOOD) See Accelerated Additions From Institutions

Analyst Team trader
Updated 28 May 2024

Dimensional Fund Advisors LP has significantly increased its holdings in Robinhood Markets stock (NASDAQ: HOOD). According to the most recent filing with the Securities and Exchange Commission (SEC), the firm expanded its stake in the online brokerage platform by 16.8% during the 4th quarter of the fiscal year.

Shares of HOOD trade up 0.54% in the premarket, having ended last week with a surge into the close, adding 6.60% in Friday's session before the long weekend.

As per the SEC filing, Dimensional Fund Advisors now possesses a total of 4,673,579 shares valued at approximately $59,559,000. This move underscores the growing institutional interest in Robinhood, which is known for democratising finance for all by providing intuitive tools for individuals to start investing with ease.

Joining Dimensional Fund Advisors, several other institutional investors have also bolstered their positions in Robinhood Markets. These include Treasurer of the State of North Carolina, Assenagon Asset Management S.A., Axxcess Wealth Management LLC, and Interchange Capital Partners LLC. As a testimony to this growing confidence, institutional investors, including hedge funds, are reported to collectively own about 71.49% of Robinhood's outstanding shares.

Analysts covering Robinhood have offered an array of opinions on the stock's outlook. Currently, the company holds three sell ratings, seven hold ratings, and five buy ratings.


Further insight into the movements within the company reveals that CEO Vladimir Tenev sold 47,570 shares on May 21st at an average price of $21.12 per share, accruing a sum of $1,004,678.40. Insider trading in the past three months involved the sale of 1,393,804 shares totalling approximately $24,444,644. Despite these sales, insiders retain a significant portion of the company, holding 19.95% of the stock.

Robinhood Markets, Inc. has developed a reputation for innovation within the U.S. financial services sector. The company's platform offers an array of investment services, including trading in stocks, exchange-traded funds (ETFs), options, gold, and even cryptocurrencies, making it a popular choice among a new generation of investors.

The company's financial performance has also been notable. Robinhood recently reported earnings of $0.18 per share for the quarter, significantly surpassing analysts' consensus estimate of $0.05 per share. Revenues stood robust at $618.00 million for the same period.

With a market cap of approximately $18.03 billion and a price-to-earnings ratio of 136.73, the company's share price remains volatile, swinging from 52 week lows of $7.91 to highs of $21.21. The consensus price target of $20.86 reflects the feeling that the stocks may be getting close to fair value according to the street.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.