10 Cheapest Stocks on Robinhood
In this article, we discuss the 10 cheapest stocks on Robinhood. If you want to skip our detailed analysis of these stocks, go directly to the 5 Cheapest Stocks on Robinhood.
On July 29, California-based financial services platform Robinhood Markets, Inc. (NASDAQ: HOOD) went public in one of the most anticipated initial offerings of the year. Although the IPO was a flop by the standards of the past year and a half — Robinhood Markets, Inc. (NASDAQ: HOOD) priced the shares at the bottom of an expected range but still lost close to 10% in value by the end of the first day of trading — it nonetheless represented a watershed moment for the fintech industry that has now gained more ground against traditional finance in the battle for market supremacy.
Robinhood Markets, Inc. (NASDAQ: HOOD) boasts a user base of more than 22 million, over 17 million of whom are active on the platform every month, and a quarterly revenue of over $500 million. In a regulatory filing, Robinhood Markets, Inc. (NASDAQ: HOOD) revealed earlier this year that the average revenue per user had increased from around $67 in 2019 to $137 at the end of the first quarter of 2021. The assets under custody increased from $14 billion to over $80 billion in the period. Equities represent the largest share of these assets — over $65 billion — and cryptocurrencies represent the second-largest - $11 billion.
Some of the popular stocks on Robinhood Markets, Inc. (NASDAQ: HOOD) these days include Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Ford Motor Company (NYSE: F), among others. However, retail investors — the average age of a Robinhood Markets, Inc. (NASDAQ: HOOD) user is around 30 — have been pouring money into cheaper equities, evidenced by the popularity of penny stocks on internet platforms like Reddit, and these options are some of the most popular ones on Robinhood as well. Some of these cheap stocks and their business fundamentals are discussed in detail below.
The advent of stock trading apps like Robinhood Markets, Inc. (NASDAQ: HOOD) have disrupted the finance world. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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With this context in mind, here is our list of the 10 cheapest stocks on Robinhood. These were ranked keeping in mind the price of the stock, analyst ratings, business fundamentals, and hedge fund sentiment around each.
Cheapest Stocks on Robinhood
10. Senseonics Holdings, Inc. (NYSE: SENS)
Number of Hedge Fund Holders: 12 Price as of August 1, 2021: $3.07
Senseonics Holdings, Inc. (NYSE: SENS) is placed tenth on our list of 10 cheapest stocks on Robinhood.The stock has returned 542% to investors over the past year. The firm is based in Maryland and offers medical technology services. The company is popular among retail investors who have driven the increases in share price over the past few months. On June 10, chatter around the firm on Reddit platforms like WallStreetBets drove a close to 18% increase in share price in a single day.
On March 5, investment advisory Stifel maintained a Buy rating on Senseonics Holdings, Inc. (NYSE: SENS) stock and raised the price target to $2.50 from $1, noting that the price target reflected the long-term view on the company.
Out of the hedge funds being tracked by Insider Monkey, Atlanta-based investment firm Masters Capital Management is a leading shareholder in Senseonics Holdings, Inc. (NYSE: SENS) with 9.3 million shares worth more than $24.7 million.
Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Ford Motor Company (NYSE: F) are some of the pricey stocks popular on Robinhood, just like cheaper options like Senseonics Holdings, Inc. (NYSE: SENS).
9. Broadway Financial Corporation (NASDAQ: BYFC)
Number of Hedge Fund Holders: 3 Price as of August 1, 2021: $2.96
Broadway Financial Corporation (NASDAQ: BYFC) is a California-based bank holding company. It is ranked ninth on our list of 10 cheapest stocks on Robinhood. The company’s shares have returned 74% to investors over the past twelve months. The firm has a market cap of over $114 million and posted $13 million in revenue last year. It was founded in 1946. Some of the banking services offered by the firm include deposit accounts, savings accounts, checking accounts, and loan services related to housing and business construction.
In earnings results for the first quarter, posted on May 4, Broadway Financial Corporation (NASDAQ: BYFC) reported earnings per share of -$0.13 and a revenue of close to $3 million, down close to 4% compared to the revenue over the same period last year.
At the end of the first quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $1.1 million in Broadway Financial Corporation (NASDAQ: BYFC), down from 4 in the previous quarter worth $3.3 million.
Unlike Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Ford Motor Company (NYSE: F), Broadway Financial Corporation (NASDAQ: BYFC) is one the cheaper stocks popular on Robinhood.
8. VistaGen Therapeutics, Inc. (NASDAQ: VTGN)
Number of Hedge Fund Holders: 15 Price as of August 1, 2021: $2.66
VistaGen Therapeutics, Inc. (NASDAQ: VTGN) stock has returned 186% to investors over the past year. It is placed eighth on our list of 10 cheapest stocks on Robinhood. The company operates as a biopharma entity focusing on the development of treatments related to anxiety, depression, and other brain-related disorders. In earnings results for the fiscal year, posted on June 29, the firm reported a revenue of over $1 million, beating market predictions by close to $0.2 million.
On May 19, investment advisory Baird assumed coverage of VistaGen Therapeutics, Inc. (NASDAQ: VTGN) stock with an Outperform rating and a price target of $9. Brian Skorney, an analyst at the firm, issued the ratings update.
At the end of the first quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $92 million in VistaGen Therapeutics, Inc. (NASDAQ: VTGN), down from 16 in the preceding quarter worth $67 million.
VistaGen Therapeutics, Inc. (NASDAQ: VTGN) is one the cheap stocks popular on Robinhood, unlike pricey ones popular on the platform like Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Ford Motor Company (NYSE: F).
7. Exela Technologies, Inc. (NASDAQ: XELA)
Number of Hedge Fund Holders: 8 Price as of August 1, 2021: $2.63
Exela Technologies, Inc. (NASDAQ: XELA) is ranked seventh on our list of 10 cheapest stocks on Robinhood. The company’s shares have returned 71% to investors over the course of the past year. The firm provides information technology solutions to businesses. It is based in Texas and has a market cap of over $155 million. Some of the services marketed by the company include transaction processing solutions, enterprise information management, document management, and digital business process services, among others.
On June 2, investment advisory Cantor Fitzgerald initiated coverage of Exela Technologies, Inc. (NASDAQ: XELA) stock with an Overweight rating and a price target of $4, noting that investors should focus on the improving fundamentals of the firm.
At the end of the first quarter of 2021, 8 hedge funds in the database of Insider Monkey held stakes worth $10 million in Exela Technologies, Inc. (NASDAQ: XELA), up from 4 in the previous quarter worth $7 million.
Exela Technologies, Inc. (NASDAQ: XELA) is one the cheap stocks popular on Robinhood, in contrast to expensive equities popular on the app that include Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Ford Motor Company (NYSE: F).
6. Verb Technology Company, Inc. (NASDAQ: VERB)
Number of Hedge Fund Holders: 3 Price as of August 1, 2021: $2.33
Verb Technology Company, Inc. (NASDAQ: VERB) stock has offered investors returns exceeding 128% over the course of the past twelve months. It is placed sixth on our list of 10 cheapest stocks on Robinhood. The company offers software solutions and is headquartered in Utah. The company is one of the favorite stocks of retail investors that frequent the popular Reddit forum named WallStreetBets. Mentions on the platform have resulted in a more than 100% increase in the share price over the past three months.
On July 23, investment advisory Alliance Global reiterated a Buy rating on Verb Technology Company, Inc. (NASDAQ: VERB) stock and raised the price target to $4 from $2.75, underlining that the firm was past a development stage and now entering the monetization stage.
At the end of the first quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $195,000 in Verb Technology Company, Inc. (NASDAQ: VERB), down from 5 in the previous quarter worth $1 million.
Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Ford Motor Company (NYSE: F) are popular on Robinhood, alongside cheap stocks like Verb Technology Company, Inc. (NASDAQ: VERB).
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Disclosure. None. 10 Cheapest Stocks on Robinhood is originally published on Insider Monkey.
