Waverly Advisors LLC Sells 15,283 Shares of Robinhood Markets, Inc. $HOOD

Key Points

• Waverly Advisors reduced its Robinhood stake by 46%, selling 15,283 shares and retaining 17,971 shares valued at approximately $1.8 million. Other institutions increased positions or initiated new stakes, and institutional investors collectively own 93.27% of the stock.
• Analyst sentiment remains positive: Robinhood has a consensus “Moderate Buy” rating and an average price target of $129.83, with recent upgrades from Morgan Stanley, Citizens JMP, Scotiabank and Zacks Research.
• Robinhood exceeded quarterly expectations, reporting $0.62 in earnings per share versus a $0.44 estimate and $1.31 billion in revenue, up 32.5% year over year. However, insiders have sold roughly $64.1 million of stock over the past three months, including sales by CEO Vladimir Tenev and Director Baiju Bhatt.

Waverly Advisors LLC cut its holdings in Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report) by 46.0% during the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 17,971 shares of the company's stock after selling 15,283 shares during the period. Waverly Advisors LLC's holdings in Robinhood Markets were worth $1,802,000 as of its most recent filing with the SEC.

Other hedge funds have also bought and sold shares of the company. Empowered Funds LLC boosted its holdings in Robinhood Markets by 46.7% in the 1st quarter. Empowered Funds LLC now owns 49,870 shares of the company's stock valued at $2,076,000 after purchasing an additional 15,885 shares during the period. Arrowstreet Capital Limited Partnership bought a new position in shares of Robinhood Markets during the second quarter worth approximately $5,105,000. Federated Hermes Inc. increased its holdings in shares of Robinhood Markets by 106.2% during the second quarter. Federated Hermes Inc. now owns 63,957 shares of the company's stock worth $5,988,000 after purchasing an additional 32,933 shares during the period. NewEdge Advisors LLC raised its position in shares of Robinhood Markets by 19.1% in the second quarter. NewEdge Advisors LLC now owns 89,676 shares of the company's stock valued at $8,396,000 after buying an additional 14,356 shares in the last quarter. Finally, Nebula Research & Development LLC acquired a new stake in shares of Robinhood Markets in the second quarter valued at approximately $1,316,000. 93.27% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on HOOD shares. Citizens Jmp increased their price target on Robinhood Markets from $155.00 to $165.00 and gave the stock a "market outperform" rating in a research report on Friday. Morgan Stanley raised Robinhood Markets from an "equal weight" rating to an "overweight" rating and lifted their price objective for the company from $124.00 to $150.00 in a report on Tuesday, September 1st. Needham & Company LLC cut their target price on Robinhood Markets from $123.00 to $120.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Scotiabank started coverage on Robinhood Markets in a report on Wednesday, September 2nd. They set a "sector outperform" rating and a $136.00 target price on the stock. Finally, Zacks Research raised Robinhood Markets from a "hold" rating to a "strong-buy" rating in a report on Thursday, September 3rd. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $129.83.

Robinhood Markets Stock Performance

Shares of NASDAQ:HOOD opened at $112.57 on Friday. The company's 50 day simple moving average is $103.62 and its 200 day simple moving average is $89.67. The stock has a market capitalization of $101.21 billion, a price-to-earnings ratio of 49.59, a price-to-earnings-growth ratio of 2.30 and a beta of 2.34. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.22 and a quick ratio of 1.22. Robinhood Markets, Inc. has a 1 year low of $63.51 and a 1 year high of $153.86.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.44 by $0.18. The firm had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.29 billion. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%.The company's quarterly revenue was up 32.5% on a year-over-year basis. During the same period in the prior year, the company earned $0.42 earnings per share. As a group, research analysts predict that Robinhood Markets, Inc. will post 2.11 EPS for the current fiscal year.

More Robinhood Markets News

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

• Positive Sentiment: Strong August activity and event-contract growth: Robinhood reported 28.6 million customers and broadly positive August operating metrics. Separately, event-contract activity reportedly increased 15-fold year over year, supporting the company’s diversification beyond traditional brokerage revenue. Robinhood August operating data Robinhood event contracts growth
• Positive Sentiment: New revenue opportunities: Citizens JMP raised its price target to $165 from $155 and maintained a Market Outperform rating. Citizens also projected Robinhood Chain could generate $365 million in revenue by 2027. Robinhood’s underwriting role in the Oura IPO could provide investment-banking fee revenue and create opportunities to participate in larger IPOs. Citizens Robinhood Chain projection Robinhood investment banking ambitions
• Neutral Sentiment: Expansion through partnerships: Robinhood is expanding prediction-market access through arrangements involving Crypto.com and OG.com, although the ultimate financial contribution remains uncertain.
• Negative Sentiment: Regulatory and legal concerns: Robinhood plans to stop offering sports prediction markets in Michigan amid litigation. A broader legal update highlights rapidly changing rules across several states, creating uncertainty around the company’s prediction-market growth strategy. Robinhood Michigan prediction markets lawsuit Prediction markets legal update
• Negative Sentiment: Tokenization faces scrutiny: Objections from securities issuers and unresolved regulatory questions could raise compliance costs and slow Robinhood’s international rollout of tokenized stocks. Robinhood tokenized-stock scrutiny
• Negative Sentiment: Insider sale: Director Oluwadara Treseder sold 1,875 shares for approximately $234,375 under a pre-arranged Rule 10b5-1 plan. The sale was small relative to her remaining stake but may add modest caution.

Insider Activity at Robinhood Markets

In related news, CEO Vladimir Tenev sold 375,000 shares of the firm's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $116.17, for a total value of $43,563,750.00. Following the sale, the chief executive officer directly owned 375,000 shares of the company's stock, valued at $43,563,750. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Baiju Bhatt sold 50,317 shares of Robinhood Markets stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $96.80, for a total value of $4,870,685.60. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 570,260 shares of company stock worth $64,115,060 in the last three months. Insiders own 13.48% of the company's stock.

Robinhood Markets Profile

Robinhood Markets, Inc is a financial services company that operates a digital investing and trading platform. Through its mobile app and website, the company provides access to U.S. stocks, exchange-traded funds, options, cryptocurrencies and other investment products. Robinhood also offers individual retirement accounts, margin investing and cash-management services, subject to applicable eligibility requirements and regulations.

The company generates revenue from sources that include interest earned on customer cash and margin balances, transaction-based revenue related to options and cryptocurrency trading, subscription fees for Robinhood Gold and other service-related activities.

Want to see what other hedge funds are holding HOOD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Robinhood Markets, Inc. (NASDAQ:HOOD - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.