Robinhood Markets (NASDAQ:HOOD) Stock Price Down 1.6% - Here's Why

Key Points

• Robinhood Markets shares fell about 1.6% to roughly $105.24 on Tuesday, with trading volume of ~18.2 million shares, about 12% below the average session volume.
• Analysts carry a consensus “Moderate Buy” rating with a $136.62 target after mixed updates — Bank of America cut its price objective to $154 while several firms maintained or raised outlooks.
• Robinhood reported an earnings beat (EPS $0.61 vs. $0.41 and revenue $1.27B, up 100% YoY), but insiders have sold heavily recently — including the CEO’s sale of 375,000 shares and roughly 2.87M shares (~$357M) sold over the past 90 days.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) fell 1.6% during trading on Tuesday . The stock traded as low as $104.66 and last traded at $105.24. 18,225,370 shares were traded during trading, a decline of 12% from the average session volume of 20,814,986 shares. The stock had previously closed at $107.00.

Analyst Ratings Changes

A number of brokerages have recently weighed in on HOOD. Bank of America dropped their price objective on shares of Robinhood Markets from $166.00 to $154.00 and set a "buy" rating for the company in a research note on Wednesday, December 10th. Piper Sandler reiterated an "overweight" rating on shares of Robinhood Markets in a report on Monday, January 5th. Zacks Research lowered Robinhood Markets from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, January 6th. Citizens Jmp raised their price objective on Robinhood Markets from $170.00 to $180.00 and gave the stock a "market outperform" rating in a research note on Friday, November 7th. Finally, CICC Research initiated coverage on shares of Robinhood Markets in a research report on Monday, October 27th. They issued an "outperform" rating and a $155.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $136.62.

Robinhood Markets Trading Down 1.6%

The firm has a fifty day simple moving average of $118.77 and a 200-day simple moving average of $119.93. The stock has a market cap of $94.63 billion, a price-to-earnings ratio of 43.67, a P/E/G ratio of 1.67 and a beta of 2.44.

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

Insider Buying and Selling

In other Robinhood Markets news, insider Daniel Martin Gallagher, Jr. sold 120,000 shares of the business's stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $132.13, for a total transaction of $15,855,600.00. Following the completion of the transaction, the insider directly owned 430,012 shares in the company, valued at $56,817,485.56. The trade was a 21.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Vladimir Tenev sold 375,000 shares of Robinhood Markets stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $121.63, for a total value of $45,611,250.00. The disclosure for this sale is available in the SEC filing. Insiders sold 2,872,561 shares of company stock valued at $357,470,545 over the last 90 days. 19.95% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Robinhood Markets

A number of hedge funds have recently added to or reduced their stakes in the business. Evergreen Capital Management LLC grew its position in Robinhood Markets by 9.9% in the 4th quarter. Evergreen Capital Management LLC now owns 98,934 shares of the company's stock valued at $11,189,000 after purchasing an additional 8,929 shares during the period. Godsey & Gibb Inc. purchased a new position in shares of Robinhood Markets in the 4th quarter worth about $28,000. TD Waterhouse Canada Inc. boosted its stake in Robinhood Markets by 197.4% in the fourth quarter. TD Waterhouse Canada Inc. now owns 130,162 shares of the company's stock valued at $14,717,000 after acquiring an additional 86,388 shares during the last quarter. Tokio Marine Asset Management Co. Ltd. lifted its stake in Robinhood Markets by 1.0% in the fourth quarter. Tokio Marine Asset Management Co. Ltd. now owns 27,019 shares of the company's stock valued at $3,056,000 after purchasing an additional 257 shares during the last quarter. Finally, Friedenthal Financial bought a new position in shares of Robinhood Markets during the 4th quarter worth $918,000. 93.27% of the stock is currently owned by institutional investors.

Robinhood Markets Company Profile

Robinhood Markets, Inc NASDAQ: HOOD is a U.S.-based financial services company best known for its mobile-first brokerage platform that aims to "democratize finance for all." Founded in 2013 by Vladimir Tenev and Baiju Bhatt and headquartered in Menlo Park, California, the company built early traction by offering commission-free trading and a simplified user experience that attracted a large base of retail investors.

Robinhood's core products and services include a mobile app and web platform for trading U.S.

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