Robinhood Markets (NASDAQ:HOOD) Shares Down 2.1% - Time to Sell?

Key Points

• HOOD shares fell 2.1% to $122.11 in Friday trading, with volume below its average. Despite the decline, the stock remains well above its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $122.67; recent targets range as high as $155. Growth prospects include event contracts, crypto initiatives, Robinhood Chain and Trust Accounts.
• Robinhood reported stronger-than-expected quarterly results, including $0.62 EPS and $1.31 billion in revenue, up 32.5% year over year. However, the stock’s valuation is elevated at a P/E ratio of 53.79, while insiders have sold roughly $64.9 million of shares over the past three months.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shares were down 2.1% on Friday . The stock traded as low as $119.82 and last traded at $122.11. 23,607,239 shares traded hands during trading, a decline of 15% from the average daily volume of 27,893,854 shares. The stock had previously closed at $124.72.

Robinhood Markets News Roundup

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

• Positive Sentiment: Analyst sentiment remains supportive. Scotiabank initiated coverage with a bullish view, while Piper Sandler raised its price target to $145 and expects football-related event contracts to increase activity. Robinhood generated $156 million from event contracts in the second quarter. Robinhood Stock Jumps After Wave of Analysts Upgrade
• Positive Sentiment: Robinhood Chain and crypto activity are emerging growth drivers. The new blockchain reportedly generated about $3.8 million in fees on September 1, while the company now has 13 business lines with more than $100 million in annualized revenue. Deutsche Bank also sees potential upside from Robinhood’s latest crypto initiatives. Robinhood Now Runs 13 Revenue Lines Above $100 Million a Year
• Positive Sentiment: CEO Vlad Tenev said Robinhood’s newly launched Trust Accounts have attracted more than $150 million since August, suggesting early customer demand for the offering. Robinhood Trust Accounts Now Have Over $150 Million

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on HOOD shares. Citizens Jmp reiterated a "market outperform" rating and issued a $155.00 target price on shares of Robinhood Markets in a research note on Thursday, July 30th. Zacks Research upgraded shares of Robinhood Markets from a "strong sell" rating to a "hold" rating in a research note on Monday, June 8th. Barclays lowered their price target on shares of Robinhood Markets from $122.00 to $105.00 and set an "overweight" rating on the stock in a report on Thursday, July 30th. Wall Street Zen raised Robinhood Markets from a "strong sell" rating to a "sell" rating in a research report on Sunday, July 12th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Robinhood Markets in a research note on Wednesday, June 24th. Twenty-three equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, Robinhood Markets currently has an average rating of "Moderate Buy" and a consensus price target of $122.67.

Robinhood Markets Price Performance

The firm's 50 day moving average price is $102.27 and its two-hundred day moving average price is $88.02. 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 stock has a market cap of $109.79 billion, a PE ratio of 53.79, a P/E/G ratio of 2.19 and a beta of 2.34.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last announced its quarterly 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. The company had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.29 billion. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. Robinhood Markets's revenue was up 32.5% compared to the same quarter last year. During the same period in the prior year, the company posted $0.42 EPS. On average, research analysts expect that Robinhood Markets, Inc. will post 2.08 earnings per share for the current year.

Insider Buying and Selling at Robinhood Markets

In other Robinhood Markets news, Director Paula Loop sold 8,336 shares of the stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $120.00, for a total transaction of $1,000,320.00. Following the sale, the director owned 63,674 shares in the company, valued at $7,640,880. This represents a 11.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel Gallagher, Jr. sold 10,000 shares of the firm's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $90.42, for a total value of $904,200.00. Following the completion of the transaction, the insider directly owned 461,396 shares of the company's stock, valued at $41,719,426.32. The trade was a 2.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 591,867 shares of company stock worth $64,907,806. Company insiders own 13.48% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in HOOD. CYBER HORNET ETFs LLC boosted its position in shares of Robinhood Markets by 527.8% in the fourth quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company's stock valued at $26,000 after acquiring an additional 190 shares during the period. Elyxium Wealth LLC bought a new stake in Robinhood Markets during the 4th quarter worth approximately $27,000. MV Capital Management Inc. bought a new stake in Robinhood Markets during the 4th quarter worth approximately $27,000. C M Bidwell & Associates Ltd. purchased a new stake in Robinhood Markets in the 2nd quarter worth approximately $27,000. Finally, Swiss RE Ltd. purchased a new stake in Robinhood Markets in the 4th quarter worth approximately $27,000. Hedge funds and other institutional investors own 93.27% of the company's stock.

About Robinhood Markets

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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