Robinhood Markets (NASDAQ:HOOD) Shares Down 4.3% After Analyst Downgrade

Key Points

• Robinhood shares fell 4.3% in Friday’s midday trading, closing in on $77.86 after Goldman Sachs cut its price target from $128 to $115 while maintaining a Buy rating.
• Analyst sentiment remains broadly positive: MarketBeat reported an average “Moderate Buy” rating and an average price target of $124.01.
• Recent trading trends were mixed: October event-contract volume rose 136% year over year to about 5.9 billion contracts, while crypto trading volume fell 48% to $17 billion.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shares were down 4.3% during mid-day trading on Friday after The Goldman Sachs Group lowered their price target on the stock from $128.00 to $115.00. The Goldman Sachs Group currently has a buy rating on the stock. Robinhood Markets traded as low as $76.61 and last traded at $77.86. 18,328,702 shares traded hands during trading, a decline of 30% from the average daily volume of 26,181,924 shares. The stock had previously closed at $81.35.

HOOD has been the topic of several other reports. Loop Capital set a $135.00 price objective on shares of Robinhood Markets in a research report on Tuesday, September 29th. Keefe, Bruyette & Woods upped their price target on shares of Robinhood Markets from $100.00 to $115.00 and gave the company a "market perform" rating in a report on Tuesday, September 29th. KeyCorp decreased their target price on Robinhood Markets from $140.00 to $135.00 and set an "overweight" rating on the stock in a report on Wednesday, October 28th. Deutsche Bank cut their price target on shares of Robinhood Markets from $138.00 to $134.00 and set a "buy" rating on the stock in a report on Tuesday, September 29th. Finally, Wall Street Zen lowered Robinhood Markets from a "hold" rating to a "strong sell" rating in a research report on Sunday, November 1st. One analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Robinhood Markets presently has an average rating of "Moderate Buy" and an average target price of $124.01.

Insider Transactions at Robinhood Markets

In other news, Director Baiju Bhatt sold 50,912 shares of the stock in a transaction that occurred on Wednesday, October 21st. The stock was sold at an average price of $101.40, for a total value of $5,162,476.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven M. Quirk sold 24,416 shares of Robinhood Markets stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $120.33, for a total value of $2,937,977.28. Following the transaction, the insider directly owned 77,839 shares of the company's stock, valued at approximately $9,366,366.87. The trade was a 23.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 1,045,503 shares of company stock worth $123,905,130. 13.48% of the stock is currently owned by company insiders.

Robinhood Markets News Roundup

Investors following HOOD have been watching these news items:

• Positive Sentiment: October event-contract trading rose 136% year over year to about 5.9 billion contracts. The product has become a meaningful revenue source, potentially helping offset weakness in crypto and other trading. Article: Robinhood's Prediction Market Bet Is Paying Off
• Negative Sentiment: October crypto trading volume fell 48% year over year to $17 billion, while securities-lending revenue dropped 43%, raising concerns about transaction revenue and fourth-quarter net interest revenue growth. Article: Robinhood Crypto Volume Sinks in October
• Negative Sentiment: The Supreme Court will hear Robinhood’s effort to dismiss an investor lawsuit alleging the company omitted interim financial data from its 2021 IPO filing. The case adds legal uncertainty; Robinhood is seeking to overturn a ruling that revived the suit. Article: Supreme Court to Hear Robinhood IPO Lawsuit Appeal

Institutional Investors Weigh In On Robinhood Markets

Several hedge funds and other institutional investors have recently made changes to their positions in HOOD. State Board of Administration of Florida Retirement System lifted its stake in shares of Robinhood Markets by 6.2% in the 3rd quarter. State Board of Administration of Florida Retirement System now owns 705,786 shares of the company's stock valued at $79,401,000 after purchasing an additional 40,914 shares during the period. Mosaic Family Wealth Partners LLC bought a new stake in shares of Robinhood Markets during the third quarter worth $215,000. Xcelsior Advisor Partners LLC acquired a new stake in shares of Robinhood Markets in the 3rd quarter valued at about $435,000. Bleakley Financial Group LLC lifted its stake in Robinhood Markets by 13.1% in the 3rd quarter. Bleakley Financial Group LLC now owns 19,655 shares of the company's stock valued at $2,211,000 after acquiring an additional 2,279 shares in the last quarter. Finally, Essex Financial Services Inc. lifted its position in shares of Robinhood Markets by 20.8% in the third quarter. Essex Financial Services Inc. now owns 2,423 shares of the company's stock worth $273,000 after purchasing an additional 417 shares in the last quarter. 93.27% of the stock is owned by institutional investors and hedge funds.

Robinhood Markets Stock Performance

The stock's 50 day moving average price is $104.19 and its 200 day moving average price is $91.82. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.26. The company has a market capitalization of $70.11 billion, a price-to-earnings ratio of 35.88, a P/E/G ratio of 1.88 and a beta of 2.56.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The company reported $0.60 EPS for the quarter, beating analysts' consensus estimates of $0.56 by $0.04. Robinhood Markets had a net margin of 39.04% and a return on equity of 21.49%. The firm had revenue of $1.42 billion during the quarter, compared to analysts' expectations of $1.44 billion. During the same quarter last year, the company posted $0.61 earnings per share. The company's revenue for the quarter was up 11.5% compared to the same quarter last year. Analysts expect that Robinhood Markets, Inc. will post 2.10 earnings per share for the current year.

Robinhood Markets Company Profile

Robinhood Markets, Inc. operates a digital financial services platform that gives customers access to investing and financial products through its website and mobile app. Its offerings include trading in stocks, exchange-traded funds, options and cryptocurrencies, as well as retirement accounts and cash-management services. Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood built its business around making financial services more accessible through a mobile-first platform. The company is headquartered in Menlo Park, California, and serves customers in the United States and select international markets.

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