Robinhood (NASDAQ:HOOD) stock jumped over 11% in Thursday’s pre-market session. Investors’ enthusiasm stems from the company’s improved total trading volumes on its platform in February 2024. Additionally, Bernstein analyst Mahika Sapra initiated coverage of Robinhood stock with a Buy rating on March 13, further boosting sentiment. Sapra’s price target of $30 price target represents 74.83% upside potential.
The analyst sees the momentum in cryptocurrencies, primarily Bitcoin (BTC-USD), as positive.
Robinhood provides a financial services platform for trading equities, option contracts, ETFs (Exchange-Traded Funds), and cryptocurrencies.
February Operating Data
The company said that the number of Funded Customers on its platform stood at 23.6 million at the end of February, up about 130 thousand from January 2024. Funded Customers are individuals who have at least one account with the Robinhood entity. Moreover, these individuals either maintained a non-zero account balance or completed a transaction using any such account in the last 45 days.
HOOD’s Assets Under Custody (AUC) at the end of February were $118.7 billion, up 16% from January 2024. Moreover, trading volumes in February surpassed those in January across all asset classes. Equity Notional Trading Volumes soared to $80.9 billion, reflecting a remarkable 36% rise. The number of Options Contracts Traded also experienced an uptick, reaching 119.1 million, an increase of 12%. At the same time, Crypto Notional Trading Volumes climbed to $6.5 billion, showing a 10% increase.
Is HOOD a Good Stock to Buy?
HOOD stock has gained about 35% year-to-date and is up over 88% in one year. The company’s focus on driving active customers to its platform, improving net deposit growth, expanding market share, and introducing new products supports its financials and share price.
However, the notable rally in Robinhood stock keeps analysts sidelined. HOOD stock has four Buy, six Hold, and three Sell recommendations for a Hold consensus rating. Analysts’ average price target on HOOD stock is $15.58, implying a downside potential of 9.21%.
