Robinhood Markets Inc (HOOD) shares experienced a surge on Thursday, driven by positive news on two fronts. Firstly, the company released its July operating data, showcasing strong performance across key metrics. Robinhood reported a total of 24.2 million funded customers by the end of July, marking a slight increase from June and a significant jump of over 1 million year-over-year. Furthermore, net deposits for July amounted to $4.2 billion, contributing to a substantial $35.8 billion in net deposits over the past twelve months.
Assets under custody reached $144.5 billion by the end of July, reflecting a 3% increase from June and a notable 53% year-over-year growth. The company also recorded impressive trading volumes. Equity notional trading volumes surged 51% year-over-year to $104.4 billion, while crypto notional trading volumes climbed 56% to $5.3 billion. Options contracts traded also saw a 51% year-over-year increase, reaching 160.5 million. Margin balances at the end of July were up 59% year-over-year, and total cash sweep balances experienced a 72% year-over-year increase.
Adding to the positive momentum, Deutsche Bank analyst Brian Bedell upgraded Robinhood stock from Hold to Buy and increased the price target from $21 to $24. Bedell’s optimistic outlook reflects the positive trends in Robinhood’s operating data.
Looking ahead, while predicting long-term stock price movements is challenging, analysts often utilize complex models and trend analysis to make forecasts. Using historical performance, a trend analysis suggests Robinhood’s annualized stock performance over the past five years has been -11.74%. If this trend continues, the stock could potentially trade at $9.99 in five years. However, external factors and managerial decisions can significantly impact future stock prices.
At the time of publication, Robinhood shares were trading 3.81% higher at $19.36.
