Shiv Verma Sells 11,472 Shares of Robinhood Markets (NASDAQ:HOOD) Stock

Key Points

• CFO Shiv Verma sold 11,472 Robinhood shares at an average price of $110.42, generating approximately $1.27 million. The Rule 10b5-1 transaction reduced his holdings by 16.79% to 56,858 shares.
• Robinhood shares rose 5.2% to $109.85, while the company reported quarterly earnings of $0.62 per share and revenue of $1.31 billion, exceeding analyst expectations. Revenue increased 32.5% year over year.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $130.88; institutional investors own 93.27% of the company’s stock.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) CFO Shiv Verma sold 11,472 shares of the company's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $110.42, for a total transaction of $1,266,738.24. Following the transaction, the chief financial officer owned 56,858 shares in the company, valued at approximately $6,278,260.36. This trade represents a 16.79% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Shiv Verma also recently made the following trade(s):

• On Monday, August 17th, Shiv Verma sold 3,982 shares of Robinhood Markets stock. The shares were sold at an average price of $95.07, for a total transaction of $378,568.74.

Robinhood Markets Trading Up 5.2%

Shares of NASDAQ HOOD traded up $5.43 during midday trading on Thursday, hitting $109.85. The stock had a trading volume of 21,799,933 shares, compared to its average volume of 27,664,955. The company's 50-day simple moving average is $103.33 and its 200 day simple moving average is $90.49. The firm has a market cap of $98.76 billion, a P/E ratio of 48.39, a price-to-earnings-growth ratio of 2.25 and a beta of 2.34. Robinhood Markets, Inc. has a fifty-two week low of $63.51 and a fifty-two week high of $153.86. 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 (NASDAQ:HOOD - Get Free Report) last announced its quarterly earnings data 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% compared to the same quarter last year. During the same period in the previous year, the business posted $0.42 EPS. Research analysts anticipate that Robinhood Markets, Inc. will post 2.11 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Parkside Financial Bank & Trust increased its position in shares of Robinhood Markets by 11.9% during the second quarter. Parkside Financial Bank & Trust now owns 1,089 shares of the company's stock valued at $109,000 after acquiring an additional 116 shares during the last quarter. Sivia Capital Partners LLC lifted its holdings in Robinhood Markets by 2.8% during the fourth quarter. Sivia Capital Partners LLC now owns 4,310 shares of the company's stock worth $487,000 after acquiring an additional 117 shares during the period. Constant Guidance Financial LLC boosted its position in Robinhood Markets by 5.3% in the fourth quarter. Constant Guidance Financial LLC now owns 2,571 shares of the company's stock worth $291,000 after purchasing an additional 129 shares during the last quarter. MCF Advisors LLC boosted its position in Robinhood Markets by 52.6% in the fourth quarter. MCF Advisors LLC now owns 377 shares of the company's stock worth $43,000 after purchasing an additional 130 shares during the last quarter. Finally, RFG Advisory LLC grew its stake in Robinhood Markets by 4.0% in the 2nd quarter. RFG Advisory LLC now owns 3,505 shares of the company's stock valued at $351,000 after purchasing an additional 135 shares during the period. Institutional investors and hedge funds own 93.27% of the company's stock.

Analyst Ratings Changes

A number of brokerages have issued reports on HOOD. Scotiabank assumed coverage on shares of Robinhood Markets in a research note on Wednesday, September 2nd. They issued a "sector outperform" rating and a $136.00 price objective on the stock. Loop Capital set a $142.00 target price on shares of Robinhood Markets in a research report on Tuesday, September 8th. Needham & Company LLC cut their price target on Robinhood Markets from $123.00 to $120.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Wall Street Zen upgraded Robinhood Markets from a "strong sell" rating to a "sell" rating in a research report on Sunday, July 12th. Finally, Piper Sandler reaffirmed an "overweight" rating and set a $145.00 price objective (up from $135.00) on shares of Robinhood Markets in a research note on Wednesday, September 2nd. Two investment analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $130.88.

Key Stories Impacting Robinhood Markets

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

• Positive Sentiment: SEC pathway could support tokenized securities: The SEC created a temporary framework for certain tokenized stocks, provided investors retain traditional shareholder rights and issuers can object. The move could benefit Robinhood’s blockchain and digital-asset initiatives by bringing tokenized trading closer to regulatory acceptance. SEC clears path for tokenized stocks
• Positive Sentiment: Regulators continue advancing crypto rules: The SEC, CFTC and FDIC announced rule-based initiatives intended to accelerate U.S. crypto adoption despite delays to the CLARITY Act. A clearer regulatory framework could expand institutional participation and retail access, areas Robinhood has identified as important growth opportunities. SEC, CFTC and FDIC accelerate U.S. crypto adoption
• Positive Sentiment: Analyst support remains favorable: Needham raised its price target to $123 from $120 while maintaining a Buy rating, reinforcing the view that Robinhood’s growth prospects justify additional upside. Needham raises Robinhood price target
• Neutral Sentiment: Prediction-market expansion draws attention: Robinhood’s prediction markets are growing, while a new skill-based market launched on Robinhood Chain. However, disputes involving prediction-market products and public figures could increase regulatory and reputational scrutiny. Robinhood prediction-market risks
• Negative Sentiment: Former-employee criminal charges pressured sentiment: Federal prosecutors charged two former Robinhood engineers over an alleged scheme involving confidential information and crypto-futures trading. The charges do not accuse Robinhood itself, but investors may remain concerned about compliance controls, reputational damage and potential regulatory scrutiny. Robinhood employees charged over crypto trading
• Negative Sentiment: Sports-betting restrictions could slow growth: Limits in Connecticut and Michigan may raise compliance costs and constrain Robinhood’s prediction-market expansion, particularly if sports-related contracts become a major source of volume. Sports betting hurdles and Robinhood

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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