Robinhood Markets (NASDAQ:HOOD) Shares Down 1.5% - Should You Sell?

Key Points

• Robinhood shares fell 1.5% on Tuesday, trading between $99.66 and $100.28, below the prior close of $101.83.
• Analyst sentiment remains upbeat: Deutsche Bank lifted its price target to $113 and Goldman Sachs raised its target to $121, both keeping buy ratings. The consensus target among analysts is $114.35, with 20 Buy ratings versus 5 Hold ratings.
• Recent fundamentals and ownership trends were mixed but broadly constructive, as Robinhood reported 15.1% revenue growth year over year in its latest quarter despite missing EPS and revenue estimates. Institutional ownership is high at 93.27%, and the company’s stock has also seen notable insider buying and selling over the past 90 days.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shares were down 1.5% during trading on Tuesday . The company traded as low as $99.66 and last traded at $100.28. Approximately 17,125,939 shares changed hands during trading, a decline of 44% from the average daily volume of 30,438,840 shares. The stock had previously closed at $101.83.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: Deutsche Bank raised its price target on Robinhood Markets (HOOD) to $113 from $105 and reiterated a buy rating, signaling confidence that the shares can still move higher. Deutsche Bank raises Robinhood price target
• Positive Sentiment: Goldman Sachs also increased its target to $121 from $108 and kept a buy rating, adding to the recent bullish analyst momentum around HOOD. Goldman Sachs raises Robinhood price target
• Positive Sentiment: June trading activity hit new highs, suggesting stronger platform engagement and potentially higher transaction-related revenue for Robinhood. Robinhood Shares Gain as June Trading Activity Reaches New Highs
• Positive Sentiment: Some market commentary says Robinhood has rebounded sharply in June and could have more upside, with investors also viewing its expanding product lineup as a growth driver. With Robinhood Rebounding, This ETF Looks Interesting
• Neutral Sentiment: Coverage around Robinhood’s “super app” vision highlights potential growth across crypto, credit cards, retirement and global expansion, but also notes that valuation and regulatory risks remain key questions. Robinhood's Super App Ambition
• Neutral Sentiment: Robinhood’s CFO stepping down from the public-association officer role appears more like an internal management update than a material business catalyst. Robinhood CFO hands off PAO role

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on HOOD shares. Loop Capital set a $110.00 price target on Robinhood Markets in a research note on Wednesday, June 17th. Mizuho lifted their target price on Robinhood Markets from $110.00 to $115.00 and gave the stock an "outperform" rating in a research report on Friday, May 29th. Keefe, Bruyette & Woods cut their price target on shares of Robinhood Markets from $75.00 to $65.00 and set a "market perform" rating on the stock in a report on Wednesday, April 29th. Morgan Stanley reduced their price target on shares of Robinhood Markets from $147.00 to $95.00 and set an "equal weight" rating on the stock in a research note on Friday, April 10th. Finally, Citizens Jmp reissued a "market outperform" rating and issued a $155.00 price objective on shares of Robinhood Markets in a research report on Thursday, May 28th. Twenty equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $114.35.

Robinhood Markets Stock Performance

The company has a market capitalization of $90.30 billion, a P/E ratio of 48.44, a PEG ratio of 2.32 and a beta of 2.35. The company's fifty day simple moving average is $86.15 and its 200-day simple moving average is $89.85.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The company reported $0.38 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.01). Robinhood Markets had a net margin of 41.12% and a return on equity of 21.39%. The business had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.14 billion. During the same quarter in the prior year, the firm posted $0.37 EPS. The company's revenue for the quarter was up 15.1% compared to the same quarter last year. On average, sell-side analysts predict that Robinhood Markets, Inc. will post 1.81 EPS for the current year.

Insider Buying and Selling

In other Robinhood Markets news, CEO Vladimir Tenev sold 375,000 shares of the stock in a transaction on Monday, April 6th. The stock was sold at an average price of $69.83, for a total transaction of $26,186,250.00. Following the sale, the chief executive officer owned 375,000 shares of the company's stock, valued at approximately $26,186,250. This trade represents a 50.00% decrease in their position. 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 Daniel Martin Gallagher, Jr. sold 10,000 shares of Robinhood Markets stock in a transaction on Monday, May 4th. The shares were sold at an average price of $76.89, for a total value of $768,900.00. Following the completion of the transaction, the insider owned 432,849 shares in the company, valued at $33,281,759.61. This represents a 2.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have purchased 680,000 shares of company stock valued at $55,306,560 and have sold 633,484 shares valued at $47,542,923. 19.95% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Robinhood Markets

Institutional investors have recently added to or reduced their stakes in the stock. Empowered Funds LLC raised its holdings in Robinhood Markets by 46.7% in the first quarter. Empowered Funds LLC now owns 49,870 shares of the company's stock worth $2,076,000 after purchasing an additional 15,885 shares in the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in shares of Robinhood Markets in the 2nd quarter valued at about $5,105,000. Federated Hermes Inc. grew its position in shares of Robinhood Markets by 106.2% in the 2nd quarter. Federated Hermes Inc. now owns 63,957 shares of the company's stock worth $5,988,000 after buying an additional 32,933 shares during the last quarter. NewEdge Advisors LLC grew its position in shares of Robinhood Markets by 19.1% in the 2nd quarter. NewEdge Advisors LLC now owns 89,676 shares of the company's stock worth $8,396,000 after buying an additional 14,356 shares during the last quarter. Finally, Nebula Research & Development LLC bought a new position in shares of Robinhood Markets during the 2nd quarter worth approximately $1,316,000. 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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