Robinhood Markets (NASDAQ:HOOD) Shares Down 2% - Should You Sell?

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) dropped 2% on Tuesday . The company traded as low as $75.18 and last traded at $75.20. Approximately 7,685,850 shares traded hands during trading, a decline of 72% from the average daily volume of 27,314,640 shares. The stock had previously closed at $76.75.

Analyst Ratings Changes

A number of analysts have recently issued reports on the company. Deutsche Bank Aktiengesellschaft raised their price objective on Robinhood Markets from $70.00 to $85.00 and gave the company a "buy" rating in a research report on Monday, June 9th. JMP Securities reaffirmed a "market outperform" rating and set a $70.00 price target on shares of Robinhood Markets in a report on Thursday, May 1st. Morgan Stanley lifted their price objective on shares of Robinhood Markets from $40.00 to $43.00 and gave the stock an "equal weight" rating in a research report on Tuesday, May 13th. Barclays dropped their price objective on shares of Robinhood Markets from $76.00 to $45.00 and set an "overweight" rating on the stock in a research report on Monday, April 7th. Finally, Compass Point began coverage on shares of Robinhood Markets in a report on Wednesday, March 19th. They set a "buy" rating and a $61.00 target price for the company. One research analyst has rated the stock with a sell rating, six have given a hold rating and twelve have given a buy rating to the stock. Based on data from MarketBeat.com, Robinhood Markets has an average rating of "Moderate Buy" and an average target price of $58.00.

Robinhood Markets Price Performance

The stock has a 50-day moving average of $57.73 and a 200-day moving average of $49.26. The firm has a market cap of $66.37 billion, a price-to-earnings ratio of 42.59, a P/E/G ratio of 4.53 and a beta of 2.25.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released its earnings results on Wednesday, April 30th. The company reported $0.37 earnings per share for the quarter, missing analysts' consensus estimates of $0.41 by ($0.04). The company had revenue of $927.00 million for the quarter, compared to the consensus estimate of $917.12 million. Robinhood Markets had a net margin of 48.77% and a return on equity of 15.42%. The business's revenue was up 50.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.18 earnings per share. On average, equities analysts expect that Robinhood Markets, Inc. will post 1.35 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CTO Jeffrey Tsvi Pinner sold 5,853 shares of Robinhood Markets stock in a transaction that occurred on Thursday, March 20th. The shares were sold at an average price of $43.36, for a total value of $253,786.08. Following the transaction, the chief technology officer now directly owns 11,706 shares of the company's stock, valued at $507,572.16. This trade represents a 33.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Vladimir Tenev sold 750,000 shares of the company's stock in a transaction on Tuesday, April 1st. The stock was sold at an average price of $41.96, for a total value of $31,470,000.00. The disclosure for this sale can be found here. Insiders sold 2,650,974 shares of company stock valued at $142,977,123 over the last quarter. 19.95% of the stock is owned by company insiders.

Hedge Funds Weigh In On Robinhood Markets

Institutional investors have recently modified their holdings of the business. Vanguard Group Inc. raised its stake in Robinhood Markets by 8.6% during the first quarter. Vanguard Group Inc. now owns 74,241,080 shares of the company's stock worth $3,089,914,000 after acquiring an additional 5,874,701 shares in the last quarter. FMR LLC grew its holdings in shares of Robinhood Markets by 184.8% during the 4th quarter. FMR LLC now owns 40,237,478 shares of the company's stock valued at $1,499,248,000 after purchasing an additional 26,107,934 shares during the last quarter. Newlands Management Operations LLC increased its position in Robinhood Markets by 1.1% during the 4th quarter. Newlands Management Operations LLC now owns 24,158,860 shares of the company's stock worth $900,159,000 after purchasing an additional 273,860 shares in the last quarter. Geode Capital Management LLC increased its position in Robinhood Markets by 4.8% during the 4th quarter. Geode Capital Management LLC now owns 12,175,972 shares of the company's stock worth $455,464,000 after purchasing an additional 555,299 shares in the last quarter. Finally, Renaissance Technologies LLC lifted its stake in Robinhood Markets by 34.4% in the 4th quarter. Renaissance Technologies LLC now owns 12,078,116 shares of the company's stock valued at $450,031,000 after purchasing an additional 3,091,514 shares during the last quarter. Institutional investors and hedge funds own 93.27% of the company's stock.

About Robinhood Markets

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.