Robinhood Markets (NASDAQ:HOOD) Shares Down 5% - Here's Why

Key Points

• Robinhood shares fell 5% to about $104.26 in mid-day trading, with volume below the stock’s average session volume.
• Analyst sentiment remains generally positive, with a “Moderate Buy” consensus and an average price target of $120.52, though Goldman Sachs recently cut its target to $118.
• Insiders sold more than 612,000 shares worth approximately $66.7 million over the last quarter, while the company’s latest earnings beat expectations with $0.62 EPS and $1.31 billion in revenue.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) dropped 5% during mid-day trading on Friday . The stock traded as low as $104.15 and last traded at $104.26. Approximately 16,186,138 shares changed hands during mid-day trading, a decline of 42% from the average session volume of 27,944,285 shares. The stock had previously closed at $109.76.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Weiss Ratings restated a "hold (c)" rating on shares of Robinhood Markets in a research report on Wednesday, June 24th. Citizens Jmp reiterated a "market outperform" rating and set a $155.00 price target on shares of Robinhood Markets in a research report on Thursday, July 30th. The Goldman Sachs Group lowered their target price on Robinhood Markets from $137.00 to $118.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Wall Street Zen raised shares of Robinhood Markets from a "strong sell" rating to a "sell" rating in a research report on Sunday, July 12th. Finally, Morgan Stanley lifted their price objective on Robinhood Markets from $95.00 to $124.00 and gave the stock an "equal weight" rating in a research report on Friday, July 10th. Twenty-one research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, Robinhood Markets currently has an average rating of "Moderate Buy" and an average price target of $120.52.

Robinhood Markets Stock Down 5.0%

The company has a fifty day simple moving average of $101.54 and a 200 day simple moving average of $86.98. The firm has a market capitalization of $93.74 billion, a P/E ratio of 45.93, a P/E/G ratio of 1.98 and a beta of 2.35. 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 quarterly earnings data on Wednesday, July 29th. The company reported $0.62 earnings per share for the quarter, beating analysts' consensus estimates of $0.44 by $0.18. The business had revenue of $1.31 billion during the quarter, compared to analyst estimates 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 last year, the business earned $0.42 EPS. On average, equities analysts expect that Robinhood Markets, Inc. will post 2.04 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of Robinhood Markets stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $116.14, for a total value of $1,161,400.00. Following the completion of the sale, the insider directly owned 471,396 shares in the company, valued at $54,747,931.44. The trade was a 2.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven M. Quirk sold 19,377 shares of the firm's stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $119.96, for a total transaction of $2,324,464.92. Following the completion of the sale, the insider owned 62,612 shares in the company, valued at $7,510,935.52. This represents a 23.63% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 612,704 shares of company stock worth $66,675,612 in the last quarter. Insiders own 13.48% of the company's stock.

Institutional Investors Weigh In On Robinhood Markets

A number of hedge funds have recently modified their holdings of HOOD. Tucker Asset Management LLC bought a new stake in Robinhood Markets during the second quarter valued at about $536,000. Groupe la Francaise purchased a new position in shares of Robinhood Markets in the second quarter worth $5,544,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Robinhood Markets during the 2nd quarter valued at about $6,918,000. California State Teachers Retirement System boosted its stake in Robinhood Markets by 9,976.4% during the second quarter. California State Teachers Retirement System now owns 113,132,988 shares of the company's stock valued at $11,344,976,000 after buying an additional 112,010,233 shares during the last quarter. Finally, Wedmont Private Capital boosted its position in shares of Robinhood Markets by 4.1% during the 2nd quarter. Wedmont Private Capital now owns 16,047 shares of the company's stock valued at $1,609,000 after acquiring an additional 637 shares during the last quarter. Institutional investors own 93.27% of the company's stock.

Robinhood Markets Company Profile

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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