HOOD Stock Records 24.2% Growth to Print an ATH Since Going Public

0
292


The ATH record of the HOOD stock might have been sparked by the positive sentiments on the growth potentials of the Menlo Park-based firm.

The shares of newly listed American financial services company, Robinhood Markets Inc (NASDAQ: HOOD) received a rejuvenation on Tuesday as the stock printed a new All-Time High (ATH). The ATH record of HOOD came after investors stacked up on the brokerage firm’s stock pushing it up by 24.2% to $46.80, a close above its Initial Public Offering (IPO) listing price of $38 per share.

Robinhood went public last Thursday but was met with a very cold reception at the hands of investors as the shares fell 8% on its debut day. The stock has largely traded below the $38 opening price since then, until Tuesday. With this latest resurgence, a better inclination toward the disposition of long-term investors has been revealed. The HOOD shares are very popular as a top traded stock on Fidelity.

Per a CNBC report, there were have been 8,988 buy orders and 7,931 sell orders of Robinhood on Fidelity on Tuesday alone. This figure shows that more of the stock is being retained for longer-term holds.

“Although we have come to expect 40% surges on the first day of trading, Robinhood talked to a wider swath of investors, including significant retail to push the boundaries on pricing,” Greg Martin of Rainmaker Securities said. “I believe now, the long-term investors who see the incredible long-term value of Robinhood are moving the stock, as the short-term investors have largely fled the stock.”

HOOD ATH Sparked by Positive Growth Sentiments

The ATH record of the HOOD stock might have been sparked by the positive sentiments on the growth potentials of the Menlo Park-based firm. Despite the harsh pangs of the coronavirus pandemic, Robinhood closed 2020 with a customer base of 7.2 million. The firm’s offering of equity, digital currency trading, and other asset management options are amongst the factors that have spiked its client growth to 18 million by the end of the first quarter.

Based on this growth curve, CNBC’s Jim Cramer recommended the HOOD stock for a buy.

“As Robinhood branches out into other forms of finance, including ‘buy now, pay later’ cards, I think [CEO Vlad Tenev’s] army of 22 million users will grow and become more powerful,” he said, adding “That’s why I’m telling you that Robinhood can be bought here.”

Cramer also submitted that the Robinhood growth push could be bolstered by the acquisition of a fintech firm to shore up its push into the payment industry. Besides Cramer, other analysts are also bullish on Robinhood with Atlantic Equities giving the firm a share price target of $65 within a year even before the IPO was floated.

“We believe this superior user growth will continue given the success of the referral program and the product appeal among its target demographic,” said Atlantic Equities analyst John Heagerty. “We also see an opportunity to build out the product portfolio to drive faster revenue growth.” 

Amongst the Wall Street investors with bullish backing of Robinhood include Ark Invest’s Cathie Wood who has purchased as much as $147.5 million worth of the HOOD shares.

Business News, Editor’s Choice, Investors News, IPO News, Market News

Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here