Robinhood posted a net loss that were wider than expectations for the second quarter. But the financial services company expressed caution about the third quarter revenue on expected lower trading activity.
The company incurred a net loss of - $2.16 per share in the second quarter, compared to a profit of 9 cents in the year-ago quarter. The FactSet analyst consensus expected a loss of -15 cents a share.
The company’s revenue came in at $565 million, vs. analyst consensus of $521.8 million. It was also double that of last year’s $244 million.
“Our business is affected by many factors, including seasonality, general market conditions and retail trading behavior as well as significant, unanticipated market events,” Robinhood said in a statement
“For the three months ending September 30, 2021, we expect seasonal headwinds and lower trading activity across the industry to result in lower revenues and considerably fewer new funded accounts than in the prior quarter.”
Expect a price pull-back in the near future.
The 50-day moving average for HOOD moved below the 200-day moving average on October 31, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HOOD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
HOOD broke above its upper Bollinger Band on December 01, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for HOOD entered a downward trend on November 15, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where HOOD's RSI Oscillator exited the oversold zone, of 18 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on November 24, 2023. You may want to consider a long position or call options on HOOD as a result. In of 31 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for HOOD just turned positive on November 27, 2023. Looking at past instances where HOOD's MACD turned positive, the stock continued to rise in of 22 cases over the following month. The odds of a continued upward trend are .
HOOD moved above its 50-day moving average on December 01, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HOOD advanced for three days, in of 122 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. HOOD’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.136) is normal, around the industry mean (4.711). P/E Ratio (28.329) is within average values for comparable stocks, (32.620). HOOD's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.400). HOOD has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.037). P/S Ratio (4.367) is also within normal values, averaging (99.483).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HOOD’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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A.I.dvisor indicates that over the last year, HOOD has been closely correlated with COIN. These tickers have moved in lockstep 67% of the time. This A.I.-generated data suggests there is a high statistical probability that if HOOD jumps, then COIN could also see price increases.