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Why Robinhood Stock Was Rocketing Higher This Week
An investor who purchased Robinhood Markets (NASDAQ: HOOD) stock at the beginning of the week would have been notably richer toward the end of it.
Shares of the next-generation financial services company were popular following a settlement deal with a regulator, not to mention several glowing analyst notes on its business. According to data compiled by S&P Global Market Intelligence, Robinhood stock was up 15% week to date as of early Friday morning.
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One settlement and two analyst boosts
Of those pieces of news, it was surely the settlement that impacted sentiment on Robinhood the most. On Monday, media outlets reported that the company agreed to pay $45 million in the deal, under which it has settled Securities and Exchange Commission (SEC) allegations that it had committed a set of transgressions involving activities such as trade reporting, record keeping, and rules governing short selling.
In the settlement, Robinhood admitted to instances of wrongdoing. In reporting the news, Reuters said the company's general counsel, Lucas Moskowitz, indicated it was satisfied with the resolution.
Perhaps not coincidentally, the next day two researchers flagged Robinhood as being one of the more attractive stocks in this early part of the year. Bernstein SocGen's Gautam Chhugani tapped it as being the best idea in its global digital assets coverage universe. Michael Cyprys of Morgan Stanley added the stock to the investment bank's Financials' Finest list as being a very attractive pick in that sector.
Capturing the zeitgeist
A well-managed brokerage is always worthy of consideration as a buy. With their various activities, such companies make coin whether the market is up or down, and lately stocks and associated investments have been quite popular. Robinhood in particular seems to have its finger on the pulse of what younger investors hunger for, and it's been rather successful delivering for them.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
