Robinhood (HOOD) is scheduled to report second-quarter earnings after the bell on Wednesday, and some traders are betting the results could propel shares to a record by the end of the week.
Based on recent options prices, traders anticipate Robinhood stock could move about 8.7% in either direction by Friday’s close. A move of that magnitude off of Monday’s close near $107 would put Robinhood shares around either a record high of $116 or a 3-week low of $97.54.
Robinhood’s stock has moved an average of 9.9% the day after its four most recent earnings reports. Shares slipped about 5% the day after Robinhood’s first-quarter report, when better-than-expected results were overshadowed by the online brokerage raising its full-year operating expenses forecast. In February, the stock soared more than 14% the day after Robinhood reported a fourth-quarter profit that was more than double Wall Street’s estimates.
Robinhood shares have risen more than 180% since the start of the year, making it the second-best performing stock in the Russell 1000.
Robinhood has leaned into cryptocurrencies this year as the White House and Congress have embraced the industry. Robinhood completed its acquisition of crypto exchange Bitstamp in early June, and later that month launched perpetual crypto futures in the E.U. and staking in the U.S. The company also began offering European customers stock tokens, offering a blockchain proxy for both public stock and equity in private companies like OpenAI and SpaceX.
The majority of analysts are bullish on Robinhood shares. Seven of the 10 analysts tracked by Visible Alpha with current ratings of Robinhood’s stock call it a “buy,” with targets ranging from $102 to $125. Two analysts assign it a “hold” rating, and just one recommends selling the stock, with a Street-low target of $48. Their average at $100.50 is 6% below Monday’s closing price.