Robinhood Markets (NASDAQ:HOOD) Shares Down 5.3% - Time to Sell?

Key Points

• Shares were down 5.3% on Monday, last trading at $115.97 (intraday low $112.42); analysts maintain a consensus “Moderate Buy” with an average target of $132.65 and individual price targets ranging up to $170.00.
• Robinhood posted strong quarterly results, beating estimates with EPS $0.61 vs $0.41 and revenue $1.27B vs $1.15B, reflecting 100% year‑over‑year revenue growth and a 52.19% net margin.
• Significant insider selling has occurred recently — CEO Vladimir Tenev sold 750,000 shares (~$104.8M) and insiders sold about 4.3M shares (~$529M) in the past 90 days, while institutional investors hold 93.27% of the stock.

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) traded down 5.3% on Monday . The company traded as low as $112.42 and last traded at $115.97. 39,784,472 shares changed hands during trading, a decline of 1% from the average session volume of 40,125,492 shares. The stock had previously closed at $122.50.

Analysts Set New Price Targets

HOOD has been the subject of several research reports. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Robinhood Markets in a report on Thursday. Morgan Stanley boosted their price target on Robinhood Markets from $110.00 to $146.00 and gave the company an "equal weight" rating in a research note on Wednesday, October 1st. CICC Research started coverage on shares of Robinhood Markets in a research note on Monday, October 27th. They issued an "outperform" rating and a $155.00 price objective for the company. Piper Sandler restated an "overweight" rating and set a $140.00 price objective (up previously from $120.00) on shares of Robinhood Markets in a research note on Tuesday, September 23rd. Finally, JMP Securities upped their price objective on shares of Robinhood Markets from $130.00 to $170.00 and gave the stock a "market outperform" rating in a research report on Thursday, October 9th. Fifteen investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $132.65.

Robinhood Markets Trading Down 5.3%

The firm has a market cap of $104.28 billion, a PE ratio of 48.12, a price-to-earnings-growth ratio of 2.80 and a beta of 2.42. The stock has a fifty day simple moving average of $132.81 and a two-hundred day simple moving average of $103.15.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its quarterly earnings results on Wednesday, November 5th. The company reported $0.61 EPS for the quarter, topping analysts' consensus estimates of $0.41 by $0.20. Robinhood Markets had a net margin of 52.19% and a return on equity of 21.74%. The firm had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.15 billion. During the same quarter in the prior year, the firm earned $0.17 EPS. The business's revenue for the quarter was up 100.0% compared to the same quarter last year. As a group, sell-side analysts predict that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Vladimir Tenev sold 750,000 shares of Robinhood Markets stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $139.73, for a total transaction of $104,797,500.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CTO Jeffrey Tsvi Pinner sold 5,864 shares of the company's stock in a transaction dated Monday, October 27th. The stock was sold at an average price of $146.91, for a total transaction of $861,480.24. Following the completion of the transaction, the chief technology officer owned 6,088 shares in the company, valued at approximately $894,388.08. The trade was a 49.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 4,297,404 shares of company stock valued at $529,026,559 over the last ninety days. 14.47% of the stock is owned by corporate insiders.

Institutional Trading of Robinhood Markets

Several hedge funds have recently bought and sold shares of HOOD. Valley National Advisers Inc. grew its holdings in Robinhood Markets by 113.6% during the 3rd quarter. Valley National Advisers Inc. now owns 188 shares of the company's stock valued at $26,000 after buying an additional 100 shares in the last quarter. Golden State Wealth Management LLC raised its holdings in shares of Robinhood Markets by 107.6% during the 3rd quarter. Golden State Wealth Management LLC now owns 191 shares of the company's stock worth $27,000 after acquiring an additional 99 shares in the last quarter. Vision Financial Markets LLC boosted its position in shares of Robinhood Markets by 100.0% during the 3rd quarter. Vision Financial Markets LLC now owns 200 shares of the company's stock valued at $29,000 after acquiring an additional 100 shares during the last quarter. Stonehage Fleming Financial Services Holdings Ltd purchased a new position in shares of Robinhood Markets in the third quarter valued at $29,000. Finally, Guerra Advisors Inc bought a new stake in Robinhood Markets in the third quarter worth $30,000. 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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