Robinhood Markets (NASDAQ:HOOD) Shares Down 5.5% - Here's Why

Key Points

• Robinhood Markets' shares declined by 5.5% during trading, reaching a low of $108.14 before closing at $107.76, significantly below the previous closing price of $114.09.
• Despite the drop in stock prices, Robinhood reported a quarterly earnings per share of $0.42, exceeding estimates of $0.30, and reflecting a 45% year-over-year revenue increase to $989 million.
• Analysts have varying opinions on Robinhood, with a consensus rating of "Moderate Buy" and an average price target of $100.31, indicating mixed future expectations for the stock.

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) fell 5.5% during trading on Wednesday . The company traded as low as $108.14 and last traded at $107.76. 22,288,324 shares traded hands during trading, a decline of 46% from the average session volume of 41,623,188 shares. The stock had previously closed at $114.09.

Analyst Ratings Changes

A number of brokerages have recently commented on HOOD. Redburn Atlantic reiterated a "sell" rating and set a $48.00 price target (up from $40.00) on shares of Robinhood Markets in a report on Monday, June 9th. Keefe, Bruyette & Woods upped their price target on Robinhood Markets from $89.00 to $106.00 and gave the stock a "market perform" rating in a report on Thursday, July 31st. Morgan Stanley upped their price target on Robinhood Markets from $43.00 to $110.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 15th. Cantor Fitzgerald upped their price target on Robinhood Markets from $100.00 to $118.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Finally, Compass Point upped their target price on Robinhood Markets from $64.00 to $96.00 and gave the company a "buy" rating in a research note on Friday, June 27th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and eleven have given a buy rating to the company. According to MarketBeat, Robinhood Markets has an average rating of "Moderate Buy" and a consensus price target of $100.31.

Robinhood Markets Price Performance

The firm has a 50 day simple moving average of $93.08 and a 200-day simple moving average of $64.97. The stock has a market capitalization of $96.76 billion, a price-to-earnings ratio of 55.29, a price-to-earnings-growth ratio of 4.33 and a beta of 2.36.

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

Insider Activity at Robinhood Markets

In other news, CTO Jeffrey Tsvi Pinner sold 5,864 shares of the stock in a transaction on Friday, July 25th. The stock was sold at an average price of $104.73, for a total transaction of $614,136.72. Following the sale, the chief technology officer owned 3,044 shares in the company, valued at approximately $318,798.12. This represents a 65.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Vladimir Tenev sold 385,485 shares of the stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $101.90, for a total value of $39,280,921.50. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 4,644,685 shares of company stock valued at $430,085,957. 19.95% of the stock is currently owned by company insiders.

Institutional Trading of Robinhood Markets

Large investors have recently made changes to their positions in the business. Hantz Financial Services Inc. boosted its holdings in Robinhood Markets by 120.3% in 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 in the second quarter valued at about $29,000. V Square Quantitative Management LLC bought a new position in Robinhood Markets in the second quarter valued at about $36,000. LGT Financial Advisors LLC bought a new position in Robinhood Markets during the second quarter worth about $37,000. Finally, Atlantic Union Bankshares Corp bought a new position in Robinhood Markets during the second quarter worth about $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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