Robinhood Markets Inc (NASDAQ:HOOD) stock surrendered early gains Monday, trading lower despite announcing a significant expansion into the mortgage market. Here’s what investors need to know.
What To Know: The company has teamed up with Sage Home Loans in an exclusive partnership aimed at “democratizing access to homeownership.”
The new offer, available to all Robinhood Gold subscribers, provides access to discounted mortgage rates at least 0.75% below the national average. Subscribers also receive a $500 credit toward closing costs for new home purchases or refinances.
Robinhood says this collaboration leverages Sage’s tech-driven platform to streamline the lending process, marking a major new product vertical for the company as it seeks to expand its financial services ecosystem.
Investors could now be turning their attention to the company’s third-quarter earnings report, due after the bell on Wednesday. Analysts project earnings of 51 cents per share on $1.18 billion in revenue.
This follows a wave of recent optimism from Wall Street, including a new Outperform initiation from CICC (setting a $155 target) and recent price target hikes from Bank of America ($157) and Keybanc ($155).
Benzinga Edge Rankings: Reflecting this recent strength, Benzinga Edge rankings show HOOD stock with exceptionally high scores of 98.71 for Momentum and 94.42 for Growth.
HOOD Price Action: Robinhood Markets shares were down 1.56% at $144.49 at the time of publication on Monday. The stock is near its 52-week high of $153.85, according to Benzinga Pro data.
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How To Buy HOOD Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Robinhood Markets’ case, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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Robinhood Expands Into Mortgages Ahead Of Q3 Earnings: What Investors Need To Know
