Robinhood Markets (NASDAQ:HOOD) Trading 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) traded down 5.5% during mid-day trading on Wednesday . The stock traded as low as $108.14 and last traded at $107.76. 22,288,324 shares changed 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 Upgrades and Downgrades

Several equities research analysts recently issued reports on the company. Cantor Fitzgerald upped their price target on Robinhood Markets from $100.00 to $118.00 and gave the company an "overweight" rating in a research report on Thursday, July 31st. Citigroup upped their price target on Robinhood Markets from $100.00 to $120.00 and gave the company a "neutral" rating in a research report on Thursday, July 31st. Compass Point upped their price target on Robinhood Markets from $64.00 to $96.00 and gave the company a "buy" rating in a research report on Friday, June 27th. Redburn Atlantic reissued a "sell" rating and set a $48.00 price target (up from $40.00) on shares of Robinhood Markets in a research report on Monday, June 9th. Finally, Morgan Stanley upped their price target on Robinhood Markets from $43.00 to $110.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 15th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and eleven have given a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $100.31.

Robinhood Markets Price Performance

The business has a fifty day moving average price of $95.36 and a 200 day moving average price of $66.15. The company has a market capitalization of $101.46 billion, a price-to-earnings ratio of 57.95, a price-to-earnings-growth ratio of 4.22 and a beta of 2.36.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported $0.42 earnings per share for the quarter, beating 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 business had revenue of $989.00 million during the quarter, compared to analysts' expectations of $893.93 million. During the same quarter last year, the business posted $0.21 earnings per share. The company's quarterly revenue was up 45.0% on a year-over-year basis. Research analysts anticipate that Robinhood Markets, Inc. will post 1.35 earnings per share for the current year.

Insider Transactions at Robinhood Markets

In related news, Director Baiju Bhatt sold 1,568,421 shares of the stock in a transaction on Friday, August 1st. The stock was sold at an average price of $99.98, for a total value of $156,810,731.58. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Daniel Martin Gallagher, Jr. sold 225,000 shares of the firm's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $99.97, for a total value of $22,493,250.00. Following the sale, the insider owned 591,887 shares of the company's stock, valued at $59,170,943.39. The trade was a 27.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 4,644,685 shares of company stock worth $430,085,957. Corporate insiders own 14.47% of the company's stock.

Institutional Investors Weigh In On Robinhood Markets

A number of institutional investors have recently bought and sold shares of HOOD. Envestnet Asset Management Inc. boosted its position in Robinhood Markets by 80.6% during the 4th quarter. Envestnet Asset Management Inc. now owns 252,766 shares of the company's stock worth $9,418,000 after acquiring an additional 112,807 shares during the period. Advisory Services Network LLC acquired a new stake in shares of Robinhood Markets during the 4th quarter valued at about $252,000. Rockefeller Capital Management L.P. acquired a new stake in shares of Robinhood Markets during the 4th quarter valued at about $2,554,000. Townsquare Capital LLC acquired a new stake in shares of Robinhood Markets during the 4th quarter valued at about $377,000. Finally, Sagespring Wealth Partners LLC acquired a new stake in shares of Robinhood Markets during the 4th quarter valued at about $201,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

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.