Robinhood Markets (NASDAQ:HOOD) Shares Down 1.1% - Here's Why

Key Points

• Robinhood Markets' share price decreased by 1.1% to $105.21, with trading volume dropping to approximately 12.5 million shares, 70% lower than the average daily volume.
• Recent analyst ratings include a "buy" from Needham & Company with a price target increase to $120.00, while Redburn Atlantic reiterated a "sell" with a target of $48.00.
• The company's latest quarterly earnings showed a 45% revenue surge year-over-year, reporting $0.42 EPS against an expected $0.30 estimate.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s share price was down 1.1% during mid-day trading on Tuesday . The company traded as low as $103.72 and last traded at $105.21. Approximately 12,501,195 shares traded hands during mid-day trading, a decline of 70% from the average daily volume of 41,740,063 shares. The stock had previously closed at $106.37.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on HOOD. Redburn Atlantic restated a "sell" rating and set a $48.00 price objective (up from $40.00) on shares of Robinhood Markets in a research note on Monday, June 9th. Morgan Stanley upped their price target on shares of Robinhood Markets from $43.00 to $110.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 15th. Piper Sandler increased their target price on Robinhood Markets from $110.00 to $120.00 and gave the stock an "overweight" rating in a research note on Thursday, July 31st. Needham & Company LLC raised their price objective on Robinhood Markets from $71.00 to $120.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Finally, Keefe, Bruyette & Woods boosted their price target on Robinhood Markets from $89.00 to $106.00 and gave the stock a "market perform" rating in a research report on Thursday, July 31st. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and twelve have assigned a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $96.29.

Robinhood Markets Stock Down 1.7%

The stock's 50 day moving average is $87.78 and its 200-day moving average is $62.52. The company has a market cap of $92.60 billion, a PE ratio of 53.24, a P/E/G ratio of 4.59 and a beta of 2.36.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.30 by $0.12. The business had revenue of $989.00 million during the quarter, compared to the consensus estimate of $893.93 million. Robinhood Markets had a return on equity of 17.48% and a net margin of 50.13%. The company's revenue was up 45.0% compared to the same quarter last year. During the same period in the prior year, the company earned $0.21 earnings per share. On average, analysts anticipate that Robinhood Markets, Inc. will post 1.35 EPS for the current fiscal year.

Insider Transactions at Robinhood Markets

In other news, Director Baiju Bhatt sold 418,338 shares of the company's stock in a transaction dated Wednesday, June 11th. The stock was sold at an average price of $74.29, for a total transaction of $31,078,330.02. Following the completion of the sale, the director owned 7,863 shares in the company, valued at approximately $584,142.27. This represents a 98.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Steven M. Quirk sold 104,887 shares of the company's stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of $70.14, for a total value of $7,356,774.18. Following the completion of the transaction, the insider directly owned 228,621 shares of the company's stock, valued at approximately $16,035,476.94. This trade represents a 31.45% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 3,001,690 shares of company stock worth $255,967,852. 19.95% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Robinhood Markets

A number of large investors have recently bought and sold shares of HOOD. Hantz Financial Services Inc. raised its stake in Robinhood Markets by 120.3% during the 2nd quarter. Hantz Financial Services Inc. now owns 271 shares of the company's stock worth $25,000 after buying an additional 148 shares during the period. V Square Quantitative Management LLC acquired a new position in Robinhood Markets during the second quarter valued at approximately $36,000. LGT Financial Advisors LLC acquired a new stake in Robinhood Markets in the second quarter valued at $37,000. REAP Financial Group LLC grew its holdings in Robinhood Markets by 44.1% during the 2nd quarter. REAP Financial Group LLC now owns 523 shares of the company's stock worth $49,000 after acquiring an additional 160 shares during the period. Finally, Ameritas Advisory Services LLC bought a new stake in Robinhood Markets during the second quarter worth $56,000. 93.27% of the stock is currently owned by institutional investors.

Robinhood Markets Company Profile

Robinhood Markets, Inc operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The company offers fractional trading, recurring investments, fully-paid securities lending, access to investing on margin, cash sweep, instant withdrawals, retirement program, around-the-clock trading, and initial public offerings participation services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.