Robinhood Shares Explode After Cathie Wood Reveals a Buy

Fund manager Cathie Wood’s Wood’s ARK Innovation ETF disclosed this week that it held around 4.9 million shares of Robinhood stock.

This represents a weighting of 0.82% in the fund.

Robinhood stock closed up 24.2% at 46.80 in the stock market today, putting the value of Wood’s holdings at $230 million.

CNBC’s Jim Kramer also said this week that Robinhood stock was still worth buying, given its appeal to younger investors.

Robinhood stock has a 29 Composite Rating and a 23 EPS Rating.

The company went public last Thursday on the Nasdaq under the ticker HOOD. The stock priced at $38 per share, the low end of its offering range. It opened at that price on Thursday but then fell 8% on its first day and had largely traded below that price. Until Tuesday that is.

Robinhood’s stock closed at $46.80 per share, up 24.2%.

Last week, Robinhood said 301,573 users participated in the IPO, representing about 1.3% of the company’s 22.5 million funded accounts as of June 30.

There had been 8,988 buy orders and 7,931 sell order of Robinhood on Fidelity on Tuesday. The ticker also appears as a top mentioned stock on Reddit’s WallStreetBets, according to Swaggy Stocks.

“Although we have come to expect 40% surges on the first day of trading, Robinhood talked to a wider swath of investors, including significant retail to push the boundaries on pricing,” said Greg Martin of Rainmaker Securities.

“I believe now, the long-term investors who see the incredible long-term value of Robinhood are moving the stock, as the short-term investors have largely fled the stock.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.