Insider Selling: Robinhood Markets (NASDAQ:HOOD) CEO Sells $30,183,725.22 in Stock

Key Points

• CEO Vladimir Tenev sold 240,834 HOOD shares for approximately $30.2 million under a pre-arranged Rule 10b5-1 plan, reducing his direct position by 50%. He also sold about $32.5 million in shares the prior day.
• Robinhood shares fell 1.5% to $120.82, while trading at a relatively elevated valuation with a price-to-earnings ratio of 53.22 and a market capitalization of $108.6 billion.
• The company recently exceeded quarterly earnings and revenue expectations, reporting $0.62 EPS and $1.31 billion in revenue, while analysts maintain a consensus “Moderate Buy” rating with an average price target of $130.70.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) CEO Vladimir Tenev sold 240,834 shares of the company's stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $125.33, for a total value of $30,183,725.22. Following the sale, the chief executive officer owned 240,834 shares of the company's stock, valued at $30,183,725.22. This trade represents a 50.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Vladimir Tenev also recently made the following trade(s):

• On Monday, September 21st, Vladimir Tenev sold 259,166 shares of Robinhood Markets stock. The stock was sold at an average price of $125.58, for a total transaction of $32,546,066.28.
• On Monday, July 6th, Vladimir Tenev sold 375,000 shares of Robinhood Markets stock. The shares were sold at an average price of $116.17, for a total transaction of $43,563,750.00.

Robinhood Markets Stock Down 1.5%

Shares of HOOD stock traded down $1.88 on Thursday, hitting $120.82. The stock had a trading volume of 14,732,608 shares, compared to its average volume of 27,551,682. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.22 and a quick ratio of 1.22. The business has a 50 day moving average of $104.01 and a 200 day moving average of $91.95. Robinhood Markets, Inc. has a 12-month low of $63.51 and a 12-month high of $153.86. The stock has a market cap of $108.63 billion, a price-to-earnings ratio of 53.22, a price-to-earnings-growth ratio of 2.48 and a beta of 2.34.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.44 by $0.18. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. The business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same period in the prior year, the firm posted $0.42 EPS. The firm's quarterly revenue was up 32.5% compared to the same quarter last year. As a group, analysts expect that Robinhood Markets, Inc. will post 2.15 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in HOOD. QRG Capital Management Inc. increased its holdings in Robinhood Markets by 14.8% in the 2nd quarter. QRG Capital Management Inc. now owns 180,595 shares of the company's stock worth $18,110,000 after acquiring an additional 23,253 shares during the last quarter. Envestnet Portfolio Solutions Inc. lifted its holdings in Robinhood Markets by 31.7% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 15,529 shares of the company's stock valued at $1,557,000 after purchasing an additional 3,738 shares during the last quarter. Capstone Financial Advisors Inc. boosted its position in Robinhood Markets by 17.5% during the second quarter. Capstone Financial Advisors Inc. now owns 3,569 shares of the company's stock worth $358,000 after purchasing an additional 532 shares during the period. Whetstone Capital Advisors LLC boosted its position in Robinhood Markets by 8.8% during the second quarter. Whetstone Capital Advisors LLC now owns 54,755 shares of the company's stock worth $5,491,000 after purchasing an additional 4,419 shares during the period. Finally, National Pension Service increased its stake in shares of Robinhood Markets by 5.1% in the second quarter. National Pension Service now owns 2,298,238 shares of the company's stock worth $230,467,000 after purchasing an additional 112,365 shares in the last quarter. Institutional investors own 93.27% of the company's stock.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: Expansion of prediction markets: Robinhood is moving beyond sports-related contracts, with crypto-linked prediction products gaining traction. CEO Vlad Tenev has said crypto could eventually dominate prediction markets, potentially creating a new source of transaction revenue despite increased regulatory scrutiny. Robinhood's Prediction Markets Move Beyond Sports
• Positive Sentiment: Robinhood Chain progress: Robinhood Chain integrated with Zerion as reported decentralized-exchange volume reached $1.88 billion. The development could increase access to decentralized finance and strengthen Robinhood’s blockchain ecosystem. Robinhood Chain integrates with Zerion
• Neutral Sentiment: Analyst sentiment remains favorable: Robinhood has a consensus “Moderate Buy” rating and an average price target above its recent trading level. However, targets vary considerably, reflecting uncertainty around valuation and regulation.
• Negative Sentiment: CEO stock sale weighs on sentiment: Vladimir Tenev sold 259,166 shares worth approximately $32.5 million, cutting his direct ownership by half. The sale was conducted under a pre-arranged Rule 10b5-1 plan, reducing its value as a bearish signal, but its size has nevertheless intensified selling concerns. SEC insider transaction filing
• Negative Sentiment: Sector-wide selling and valuation risk: Webull’s sharp decline following insider-sale headlines has pressured other brokerage stocks, including Robinhood and Interactive Brokers. HOOD also trades well above its 50-day and 200-day moving averages and at a relatively high earnings multiple, increasing the risk of profit-taking.

Analyst Upgrades and Downgrades

HOOD has been the topic of a number of recent analyst reports. Wall Street Zen upgraded Robinhood Markets from a "strong sell" rating to a "sell" rating in a report on Sunday, July 12th. Piper Sandler reaffirmed an "overweight" rating and set a $145.00 target price (up from $135.00) on shares of Robinhood Markets in a research report on Wednesday, September 2nd. Loop Capital set a $142.00 target price on Robinhood Markets in a research note on Tuesday, September 8th. Scotiabank assumed coverage on shares of Robinhood Markets in a research report on Wednesday, September 2nd. They set a "sector outperform" rating and a $136.00 price target for the company. Finally, Sanford C. Bernstein restated an "outperform" rating and set a $160.00 price objective on shares of Robinhood Markets in a report on Tuesday, September 8th. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $130.70.

About Robinhood Markets

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.

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