Business

Robin Hood soars 17% and runs above $ 38 IPO price

CEO and co-founder Robinhood Markets, Inc. Vlad Tenev will appear on the screen on July 29, 2021 during his company’s IPO at the Nasdaq MarketS site in Times Square, New York City, USA.

Brendan MacDermid | Reuters

Share Robin hood Soaring on Tuesday, the newly launched stock trading app far exceeded last week’s IPO price of $ 38 per share.

Robin Hood was unveiled under the ticker HOOD on the Nasdaq last Thursday, hitting the open market trying to democratize. The share price is $ 38 per share, which is the lower limit of the offer range. It opened at that price on Thursday, but fell 8% on the first day, well below that price until Tuesday.

Robin Hood’s share price rose 17% on Tuesday, last trading at $ 44.00 per share.

Based in Menlo Park, Calif., The company appears to be drawing attention from retail investors on Tuesday after transferring about 25% of its IPO stake to its clients. HOOD is Fidelity’s “top trading stock” and is generally a good substitute for individual investors on a particular day.

Robin Hood had 5,464 buy orders and 4,503 sell orders at Fidelity on Tuesday. According to Swaggie Stocks, which aggregates posts, the ticker also appears as the most mentioned stock on Reddit’s WallStreetBets.

“While a 40% surge is expected on the first day of trading, Robin Hood is with a wider range of investors, including key retailers to push price limits,” said Greg Martin of Rainmaker Securities. We talked about it. ” “I now believe that long-term investors looking at Robin Hood’s incredible long-term value are moving stocks, mainly because short-term investors have fled stocks.”

The Bulls love Robinhood for its massive growth, especially during the coronavirus pandemic and GameStop trading enthusiasts. Robin Hood, a provider of equity, cryptocurrency, options trading and cash management accounts, had 18 million clients as of March 2021, up 151% from 7.2 million in 2020. The company estimates that the number of funded accounts reached 22.5 million in the second quarter.

“I think Robin Hood is diverging into other forms of finance, such as” buy now, pay later “cards. [CEO Vlad Tenev’s] An army of 22 million users will grow and become more powerful. ” CNBC’s Jim Cramer said in “Mad Money” on Monday night.. “That’s why Robin Hood says you can buy it here,” Kramer added.

He also said Robin Hood could acquire another fintech company to further expand into the payments space, which could lead to further stakes.

Atlantic Equities prior to IPO Gave Robin Hood a rating of overweight A 12-month price target of $ 65 per share. Most of Wall Street is still considering stock ratings.

“Given the success of our referral program and the appeal of our products to our target audience, we believe this great user growth will continue,” said John Heagerty, an analyst at Atlantic Equity. “We also have the opportunity to build a product portfolio and accelerate revenue growth.”

Robin Hood has also received a credible vote from Ark Invest’s Cathie Wood since its debut.

wood Purchased Approximately 1.85 million shares of Robin Hood on Friday will be added to the 1.3 million shares purchased on Thursday. Based on Robin Hood’s current price, Wood’s total position is worth about $ 124.5 million.

“There is nothing better [Robinhood] Robin Hood’s early investor Jason Calacanis told CNBC last Thursday. Things for a long time. That is the source of great victory. “

Robin Hood is 5 times CNBC Disruptor 50 Break through the list of companies and this year. sign up A weekly original newsletter with details on 50 CNBC disruptors like Robin Hood.

Robin Hood soars 17% and runs above $ 38 IPO price

Source link Robin Hood soars 17% and runs above $ 38 IPO price

Back to top button