Robinhood Markets (NASDAQ:HOOD) pioneered low-cost and no-cost self-directed investing. However, sometimes financial traders don’t fully recognize Robinhood’s true value. So, whenever HOOD stock dips into what I call the “buy zone,” that’s the time to pounce so you don’t miss the opportunity.
As we’ll discover in a moment, some large-scale investors are dumping their Robinhood shares but others are loading up.
I’m in the bullish camp, but only below a particular share price. Now, let’s find out which famous tech titan reduced its stake in Robinhood, and which well-known fund loaded up the truck.
HOOD Stock: A Big-Time Seller and a Famous Buyer
Here’s the scoop. Citing a filing, Barron’s recently reported that Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) slashed its stake in Robinhood from around 4.93 million shares at the end of March, to just 612,214 shares at the end of June. This represents a reduction of nearly 90%.
In contrast, Cathie Wood’s ARK Innovation ETF (NYSEARCA:ARKK) reportedly purchased bought 365,748 HOOD stock shares.
Furthermore, two other Wood-run funds, the ARK Next Generation Internet ETF (NYSEARCA:ARKW) and the ARK Fintech Innovation ETF (NYSEARCA:ARKF), bought comparatively smaller quantities of Robinhood shares.
It’s fascinating to monitor the mega-scale buys and sales of these big-time investors. Unfortunately, there’s no way to know exactly why Alphabet and Wood’s funds placed the aforementioned trades.
At the end of the day, you can keep tabs on the big trades but should make your own investment decisions based on the facts pertaining to Robinhood.
Therefore, let’s look under the hood (pun fully intended) and see how Robinhood has been doing lately, financially and operationally speaking.
Robinhood Improves on Multiple Fronts
In more than one way, Robinhood is clearly showing growth and improvement. After mulling the relevant data points, surely you’ll agree that HOOD stock ought to be much higher than it is now.
First of all, during 2023’s second quarter, Robinhood’s revenue increased 10% quarter-over-quarter to $486 million. It’s also good news that Robinhood’s operating expenses declined $484 million quarter-over-quarter to $466 million.
Robinhood earned 3 cents per share in Q2 2023. This data point might not sound like a big deal, but it represents Robinhood’s first profitable quarter. For comparison, Robinhood posted a loss of 34 cents per share in the year-earlier quarter.
Also, Robinhood made operational strides in the month of July. At the end of that month, Robinhood counted 23.2 million net cumulative funded accounts (NCFA). That’s up approximately 50,000 NCFA compared to the previous month.
Plus, Robinhood recorded an impressive 11 million monthly active users (MAU) in July. That figure is around 200,000 MAU higher than what was reported in June.
HOOD Stock Is a Confident Buy Under $10
A deep dive into Robinhood uncovered some impressive financial and operational facts. Yet, the Robinhood share price is substantially below its 52-week peak of $13.23.
Thus, it looks like there’s a prime opportunity here. You don’t have to buy as many Robinhood shares as Wood’s funds did, though. Instead, if HOOD stock is in the “buy zone” – for me, that’s $10 or less – feel free to take a small but confident long-term position.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
