Insider Selling: Robinhood Markets (NASDAQ:HOOD) Director Sells $5,162,476.80 in Stock

Key Points

• Robinhood director Baiju Bhatt sold 50,912 shares for approximately $5.16 million at an average price of $101.40 under a pre-arranged Rule 10b5-1 trading plan. He has also sold shares in two earlier transactions this year.
• HOOD shares fell 1.6% to $95.07, with the stock carrying a market capitalization of about $85.5 billion and trading well below its 12-month high of $150.47.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $130.29, although declining crypto revenue and the company’s elevated valuation remain concerns.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) Director Baiju Bhatt sold 50,912 shares of the firm's stock in a transaction dated Wednesday, October 21st. The stock was sold at an average price of $101.40, for a total transaction of $5,162,476.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Baiju Bhatt also recently made the following trade(s):

• On Thursday, September 10th, Baiju Bhatt sold 43,373 shares of Robinhood Markets stock. The shares were sold at an average price of $114.28, for a total value of $4,956,666.44.
• On Friday, August 14th, Baiju Bhatt sold 50,317 shares of Robinhood Markets stock. The stock was sold at an average price of $96.80, for a total value of $4,870,685.60.

Robinhood Markets Stock Down 1.6%

Shares of NASDAQ:HOOD traded down $1.51 during trading on Friday, hitting $95.07. The stock had a trading volume of 13,858,000 shares, compared to its average volume of 26,609,168. Robinhood Markets, Inc. has a 12 month low of $63.51 and a 12 month high of $150.47. The company has a market capitalization of $85.48 billion, a PE ratio of 41.88, a PEG ratio of 2.03 and a beta of 2.35. The firm's fifty day moving average is $109.41 and its 200 day moving average is $97.22. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.23.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $0.62 EPS for the quarter, beating analysts' consensus estimates of $0.44 by $0.18. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%. The company had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.29 billion. During the same quarter last year, the business posted $0.42 EPS. The firm's revenue for the quarter was up 32.5% compared to the same quarter last year. Analysts anticipate that Robinhood Markets, Inc. will post 2.19 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

HOOD has been the topic of a number of research reports. Evercore initiated coverage on shares of Robinhood Markets in a report on Monday, October 12th. They set an "outperform" rating and a $130.00 target price on the stock. KeyCorp lifted their price target on shares of Robinhood Markets from $130.00 to $140.00 and gave the company an "overweight" rating in a research report on Wednesday, September 30th. Citigroup reissued a "market outperform" rating on shares of Robinhood Markets in a research note on Friday, October 9th. JPMorgan Chase & Co. upped their price objective on shares of Robinhood Markets from $103.00 to $115.00 and gave the stock a "neutral" rating in a report on Tuesday. Finally, Rosenblatt Securities started coverage on shares of Robinhood Markets in a report on Wednesday. They issued a "buy" rating and a $135.00 price objective on the stock. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $130.29.

Robinhood Markets News Roundup

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

• Positive Sentiment: Rosenblatt Securities initiated coverage with a Buy rating and a $135 price target, adding to recent analyst optimism and suggesting substantial upside from current levels. Rosenblatt initiates coverage of Robinhood Markets
• Positive Sentiment: Robinhood received authorization to offer securities and crypto trading in Dubai, with a Middle East launch planned for 2027. The expansion could broaden its addressable market and diversify growth beyond the United States. Robinhood Gets Dubai License
• Positive Sentiment: Robinhood is expanding beyond its core brokerage through prediction markets, tokenized assets, lending, advisor technology and other products. Growing activity in bitcoin and gold prediction markets supports the case that the company can deepen customer relationships and increase revenue per user. Robinhood sees surge in bitcoin and gold prediction markets
• Positive Sentiment: Robinhood stock tokens are now usable as collateral on Morpho, potentially increasing the utility and adoption of its tokenization platform. Its Fusion platform also gained ICE Connect Wealth integration, strengthening its offering to registered investment advisors. Robinhood stock tokens go live on Morpho
• Neutral Sentiment: Analysts are expecting another solid quarter, but earnings estimates and key operating metrics will likely determine whether the stock can recover ahead of the October 27 report. Recent analyst price-target increases provide support, while the elevated valuation leaves less room for disappointment. Robinhood Markets quarterly earnings preview
• Negative Sentiment: Crypto revenue fell 38% year over year to $100 million in the second quarter, marking three consecutive quarters of decline. Although late-quarter trading activity improved, investors remain concerned that any recovery may not be large enough to materially improve results. Robinhood crypto revenue outlook

Institutional Investors Weigh In On Robinhood Markets

Institutional investors have recently modified their holdings of the stock. James T. Borello RIA purchased a new position in shares of Robinhood Markets in the 3rd quarter worth about $29,000. C M Bidwell & Associates Ltd. bought a new position in Robinhood Markets in the 2nd quarter worth about $27,000. SHP Wealth Management purchased a new stake in Robinhood Markets during the 4th quarter valued at about $32,000. Continuum Advisory LLC purchased a new stake in Robinhood Markets during the 2nd quarter valued at about $40,000. Finally, Cassaday & Co Wealth Management LLC purchased a new stake in Robinhood Markets during the 1st quarter valued at about $33,000. 93.27% of the stock is owned by hedge funds and other institutional investors.

Robinhood Markets Company Profile

Robinhood Markets, Inc is a financial services company that operates a digital brokerage platform. Founded in 2013 by Vlad Tenev and Baiju Bhatt, the company became known for offering commission-free trading and a mobile-first investing experience designed to broaden access to financial markets.

Through its platform, Robinhood provides brokerage services for stocks, exchange-traded funds, options and other investments. Its offerings also include cryptocurrency trading, individual retirement accounts, margin investing, cash management services and Robinhood Gold, a subscription-based product that provides additional features and benefits.

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.