Robinhood Markets (NASDAQ:HOOD) Shares Down 3.1% - Here's Why

Key Points

• Robinhood Markets' share price decreased by 3.1%, trading between $99.00 and $104.22 with a significant drop in volume, recording 41% less than average.
• Wall Street analysts have varying ratings for Robinhood, with a consensus target price of $100.31 and mixed predictions for growth, as some firms raised their target prices significantly following the company's positive earnings report.
• Insider activity has been notable, with CEO Vladimir Tenev selling 750,000 shares for approximately $69.95 million, and a total of 4.64 million shares sold by insiders over the last 90 days.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s share price fell 3.1% during trading on Wednesday . The stock traded as low as $99.00 and last traded at $104.22. 24,585,291 shares traded hands during trading, a decline of 41% from the average session volume of 41,614,914 shares. The stock had previously closed at $107.50.

Wall Street Analysts Forecast Growth

Several brokerages have commented on HOOD. Redburn Atlantic reiterated a "sell" rating and set a $48.00 target price (up previously from $40.00) on shares of Robinhood Markets in a research report on Monday, June 9th. Deutsche Bank Aktiengesellschaft upped their target price on shares of 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 upped their target price on shares of Robinhood Markets from $125.00 to $130.00 and gave the company a "market outperform" rating in a research report on Thursday, July 31st. Morgan Stanley boosted their price target on shares of Robinhood Markets from $43.00 to $110.00 and gave the company an "equal weight" rating in a report on Tuesday, July 15th. Finally, KeyCorp boosted their price target on shares of Robinhood Markets from $60.00 to $110.00 and gave the company an "overweight" rating in a report on Tuesday, July 1st. Eleven analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $100.31.

Robinhood Markets Trading Down 3.7%

The stock's 50 day moving average price is $96.89 and its 200 day moving average price is $67.07. The company has a market capitalization of $91.98 billion, a price-to-earnings ratio of 52.36, a P/E/G ratio of 4.39 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 EPS for the quarter, topping analysts' consensus estimates of $0.30 by $0.12. The company had revenue of $989.00 million during the quarter, compared to the consensus estimate of $893.93 million. Robinhood Markets had a net margin of 50.13% and a return on equity of 17.48%. The company's quarterly revenue was up 45.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.21 EPS. On average, research analysts expect that Robinhood Markets, Inc. will post 1.35 earnings per share for the current year.

Insider Activity at Robinhood Markets

In other news, CEO Vladimir Tenev sold 750,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $93.27, for a total transaction of $69,952,500.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Steven M. Quirk sold 104,887 shares of the stock in a transaction that occurred on Tuesday, June 3rd. The stock was sold at an average price of $70.14, for a total transaction of $7,356,774.18. Following the sale, the insider owned 228,621 shares in the company, valued at $16,035,476.94. This represents a 31.45% decrease in their position. The disclosure for this sale can be found here. Insiders sold 4,644,685 shares of company stock valued at $448,881,884 in the last 90 days. Insiders own 14.47% of the company's stock.

Hedge Funds Weigh In On Robinhood Markets

Large investors have recently modified their holdings of the business. Hantz Financial Services Inc. raised its stake in shares of Robinhood Markets by 120.3% during the second quarter. Hantz Financial Services Inc. now owns 271 shares of the company's stock valued at $25,000 after acquiring an additional 148 shares during the last quarter. Smithfield Trust Co bought a new position in Robinhood Markets during the second quarter worth $29,000. Twin Peaks Wealth Advisors LLC bought a new position in Robinhood Markets during the second quarter worth $34,000. V Square Quantitative Management LLC bought a new position in Robinhood Markets during the second quarter worth $36,000. Finally, LGT Financial Advisors LLC bought a new position in Robinhood Markets during the second quarter worth $37,000. Institutional investors own 93.27% of the company's stock.

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.

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