Cache Advisors LLC Sells 12,000 Shares of Robinhood Markets, Inc. $HOOD

Key Points

• Cache Advisors LLC reduced its Robinhood stake by 45.5% in the first quarter, selling 12,000 shares and leaving it with 14,397 shares valued at about $998,000.
• Robinhood is benefiting from bullish activity and strong trading volumes, with Truist saying June activity points to a possible record quarter and transaction revenue running ahead of estimates.
• The company’s recent $2 billion convertible debt offering is a key overhang because it raises dilution concerns, even though Robinhood plans to use some proceeds for share repurchases and capped calls to offset that risk.

Cache Advisors LLC trimmed its stake in Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) by 45.5% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 14,397 shares of the company's stock after selling 12,000 shares during the period. Cache Advisors LLC's holdings in Robinhood Markets were worth $998,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also added to or reduced their stakes in HOOD. Evolution Wealth Advisors LLC boosted its holdings in shares of Robinhood Markets by 5.2% in the fourth quarter. Evolution Wealth Advisors LLC now owns 1,916 shares of the company's stock valued at $217,000 after purchasing an additional 95 shares during the period. CogentBlue Wealth Advisors LLC increased its holdings in Robinhood Markets by 4.1% during the 4th quarter. CogentBlue Wealth Advisors LLC now owns 2,489 shares of the company's stock worth $282,000 after purchasing an additional 98 shares during the period. SOA Wealth Advisors LLC. increased its holdings in Robinhood Markets by 11.5% during the 4th quarter. SOA Wealth Advisors LLC. now owns 968 shares of the company's stock worth $109,000 after purchasing an additional 100 shares during the period. Mill Creek Capital Advisors LLC raised its position in Robinhood Markets by 1.8% during the 3rd quarter. Mill Creek Capital Advisors LLC now owns 6,107 shares of the company's stock valued at $874,000 after purchasing an additional 107 shares in the last quarter. Finally, Barnes Dennig Private Wealth Management LLC raised its position in Robinhood Markets by 10.2% during the 4th quarter. Barnes Dennig Private Wealth Management LLC now owns 1,210 shares of the company's stock valued at $137,000 after purchasing an additional 112 shares in the last quarter. 93.27% of the stock is currently owned by institutional investors.

Key Headlines Impacting Robinhood Markets

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

• Positive Sentiment: Truist remains bullish on Robinhood, saying June activity points to a record quarter and transaction revenue appears to be running ahead of estimates. Truist Stays Bullish on Robinhood as June Volumes Point to Record Quarter
• Positive Sentiment: Robinhood said it will use about $290 million of the convertible note proceeds to repurchase shares and will use capped calls to help limit dilution from the deal. Robinhood Announces Pricing of Private Offering of $2.0 Billion of Convertible Senior Notes Due 2029
• Positive Sentiment: Recent commentary highlights Robinhood’s push to diversify revenue beyond trading fees, which could improve long-term earnings potential if the strategy works. Forget Trading Fees: This Power Move Could Completely Redefine Robinhood's Revenue
• Neutral Sentiment: Robinhood is still drawing heavy investor attention, with analysts and traders focused on how its higher volumes, new products, and capital deployment will affect results. Here is What to Know Beyond Why Robinhood Markets, Inc. (HOOD) is a Trending Stock
• Neutral Sentiment: Industry chatter around Meta’s reported prediction-market app, Arena, created competitive noise for Robinhood’s prediction-market ambitions, but the impact is still unclear. Meta prediction markets app Arena sinks DraftKings, Robinhood stock
• Negative Sentiment: The $2 billion convertible debt raise is weighing on the stock because it raises the possibility of future dilution, even though Robinhood tried to offset that risk with buybacks and capped calls. Robinhood Prices $2.0 Billion Convertible Senior Notes Offering, Plans Concurrent Share Repurchases

Robinhood Markets Stock Performance

NASDAQ:HOOD opened at $103.25 on Wednesday. The company's 50-day simple moving average is $84.83 and its 200-day simple moving average is $90.90. Robinhood Markets, Inc. has a fifty-two week low of $63.51 and a fifty-two week high of $153.86. The stock has a market capitalization of $92.98 billion, a P/E ratio of 49.88, a P/E/G ratio of 2.50 and a beta of 2.35.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The company reported $0.38 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 for the quarter, compared to the consensus estimate of $1.14 billion. During the same quarter last year, the firm earned $0.37 EPS. The company's revenue was up 15.1% compared to the same quarter last year. On average, research analysts forecast that Robinhood Markets, Inc. will post 1.8 EPS for the current year.

Insiders Place Their Bets

In other news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the firm's stock in a transaction on Monday, May 4th. The stock was sold at an average price of $76.89, for a total value of $768,900.00. Following the completion of the sale, the insider owned 432,849 shares of the company's stock, valued at $33,281,759.61. This trade represents a 2.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Baiju Bhatt sold 67,422 shares of the business's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $75.38, for a total value of $5,082,270.36. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders bought 680,000 shares of company stock valued at $55,306,560 and sold 633,484 shares valued at $47,542,923. Company insiders own 19.95% of the company's stock.

Wall Street Analysts Forecast Growth

HOOD has been the topic of a number of recent research reports. Mizuho increased their price target on Robinhood Markets from $110.00 to $115.00 and gave the stock an "outperform" rating in a research report on Friday, May 29th. Citigroup restated a "market outperform" rating on shares of Robinhood Markets in a report on Thursday, May 28th. Keefe, Bruyette & Woods lowered their price objective on shares of Robinhood Markets from $75.00 to $65.00 and set a "market perform" rating for the company in a research note on Wednesday, April 29th. Argus raised their target price on shares of Robinhood Markets from $90.00 to $110.00 and gave the company a "buy" rating in a research report on Wednesday, June 17th. Finally, KeyCorp restated an "overweight" rating and issued a $100.00 price target on shares of Robinhood Markets in a report on Monday, June 1st. Eighteen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $112.36.

Robinhood Markets 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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