Altimeter Capital Management LP Decreases Stock Holdings in Robinhood Markets, Inc. $HOOD

Key Points

• Altimeter Capital Management cut its Robinhood stake by 50.2% in the fourth quarter, leaving it with 1.29 million shares worth about $146.3 million.
• Several other hedge funds also boosted their positions, and 93.27% of Robinhood’s stock is now held by hedge funds and other institutional investors.
• Wall Street remains broadly bullish on HOOD, with a Moderate Buy consensus and average price target of $112.36, while recent news highlighted a planned 10% workforce cut and record June trading volumes.

Altimeter Capital Management LP reduced its stake in shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) by 50.2% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,293,292 shares of the company's stock after selling 1,303,583 shares during the quarter. Robinhood Markets makes up 2.2% of Altimeter Capital Management LP's holdings, making the stock its 13th largest position. Altimeter Capital Management LP owned 0.14% of Robinhood Markets worth $146,271,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently made changes to their positions in the stock. Aberdeen Group plc raised its stake in Robinhood Markets by 565.1% in the third quarter. Aberdeen Group plc now owns 185,538 shares of the company's stock valued at $26,565,000 after buying an additional 157,643 shares during the last quarter. NEOS Investment Management LLC purchased a new stake in Robinhood Markets in the third quarter valued at about $11,994,000. Truist Financial Corp raised its stake in Robinhood Markets by 88.9% in the fourth quarter. Truist Financial Corp now owns 145,489 shares of the company's stock valued at $16,455,000 after buying an additional 68,458 shares during the last quarter. PNC Financial Services Group Inc. raised its stake in Robinhood Markets by 86.2% in the fourth quarter. PNC Financial Services Group Inc. now owns 100,849 shares of the company's stock valued at $11,406,000 after buying an additional 46,688 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC raised its stake in Robinhood Markets by 26.3% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 365,551 shares of the company's stock valued at $44,477,000 after buying an additional 76,075 shares during the last quarter. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

HOOD has been the subject of a number of research analyst reports. New Street Research set a $122.00 price target on Robinhood Markets in a research note on Thursday, March 5th. Citizens Jmp reiterated a "market outperform" rating and issued a $155.00 price target on shares of Robinhood Markets in a research note on Thursday, May 28th. Barclays decreased their price target on Robinhood Markets from $89.00 to $82.00 and set an "overweight" rating for the company in a research note on Wednesday, April 29th. Loop Capital set a $110.00 price objective on Robinhood Markets in a research note on Wednesday. Finally, Wall Street Zen upgraded Robinhood Markets from a "strong sell" rating to a "sell" rating in a research note on Saturday, June 13th. Eighteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Robinhood Markets presently has a consensus rating of "Moderate Buy" and an average price target of $112.36.

Insider Activity

In related news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $83.68, for a total transaction of $836,800.00. Following the sale, the insider directly owned 481,396 shares of the company's stock, valued at $40,283,217.28. This trade represents a 2.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven M. Quirk sold 10,837 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $85.91, for a total value of $931,006.67. Following the sale, the insider directly owned 81,989 shares in the company, valued at approximately $7,043,674.99. This trade represents a 11.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders acquired 680,000 shares of company stock valued at $55,306,560 and sold 633,484 shares valued at $47,542,923. 14.47% of the stock is currently owned by insiders.

Key Robinhood Markets News

Here are the key news stories impacting Robinhood Markets this week:

• Positive Sentiment: Robinhood announced a planned 10% workforce reduction, which investors are interpreting as a cost-cutting move that could improve efficiency and margins. The company said the restructuring is aimed at flattening management and speeding product launches. WSJ: Robinhood Markets to Cut 10% of Workforce in Restructuring
• Positive Sentiment: Management also said trading activity is running at record levels in June, signaling strong platform engagement and potentially better near-term revenue trends. Motley Fool: Robinhood Jumps After Announcing 10% Workforce Reduction, Record June Volumes
• Positive Sentiment: Wall Street responded favorably, with Argus raising its price target on HOOD to $110 from $90 and reiterating a buy rating, reinforcing confidence in the company’s growth outlook. Yahoo Finance: Robinhood Stock Is Soaring A Day After Big Layoffs. This Is Why.
• Positive Sentiment: Multiple reports say analysts remain broadly bullish on Robinhood despite the layoffs, suggesting investors see the company’s growth story as intact. Invezz: Robinhood stock gains as analysts back growth despite layoffs
• Neutral Sentiment: There was also insider selling by CFO Shiv Verma and director Baiju Bhatt, but both sales were disclosed as pre-arranged 10b5-1 transactions, so the market may treat them as routine rather than a major warning sign. SEC filing: Shiv Verma sale SEC filing: Baiju Bhatt sale

Robinhood Markets Stock Up 8.8%

Shares of NASDAQ:HOOD opened at $105.20 on Thursday. Robinhood Markets, Inc. has a 52-week low of $63.51 and a 52-week high of $153.86. The stock has a market cap of $94.73 billion, a price-to-earnings ratio of 50.82, a PEG ratio of 2.42 and a beta of 2.35. The business has a 50-day moving average price of $81.94 and a 200-day moving average price of $91.51.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.01). Robinhood Markets had a return on equity of 21.39% and a net margin of 41.12%.The firm had revenue of $1.07 billion during the quarter, compared to analysts' expectations of $1.14 billion. During the same quarter in the previous year, the business earned $0.37 earnings per share. The company's revenue for the quarter was up 15.1% compared to the same quarter last year. As a group, equities analysts anticipate that Robinhood Markets, Inc. will post 1.83 EPS for the current fiscal year.

Robinhood Markets Company Profile

Robinhood Markets, Inc NASDAQ: HOOD is a U.S.-based financial services company best known for its mobile-first brokerage platform that aims to "democratize finance for all." Founded in 2013 by Vladimir Tenev and Baiju Bhatt and headquartered in Menlo Park, California, the company built early traction by offering commission-free trading and a simplified user experience that attracted a large base of retail investors.

Robinhood's core products and services include a mobile app and web platform for trading U.S.

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