Robinhood Markets (NASDAQ:HOOD) Stock Price Down 2% - What's Next?

Key Points

• Robinhood Markets' stock price decreased by 2% to $131.44, with a trading volume significantly below its average at around 22.9 million shares.
• Equities research analysts have adjusted price targets for Robinhood, with estimates ranging from $106.00 to $146.00, reflecting a consensus rating of "Moderate Buy."
• Recent insider activity saw directors sell a total of over 5 million shares, indicating a 21.57% decrease in one director's stake, amidst a backdrop of significant institutional investment growth in the company.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s stock price was down 2% during trading on Thursday . The company traded as low as $130.57 and last traded at $131.44. Approximately 22,947,774 shares changed hands during mid-day trading, a decline of 45% from the average daily volume of 41,480,395 shares. The stock had previously closed at $134.15.

Analyst Ratings Changes

A number of equities research analysts have commented on HOOD shares. Keefe, Bruyette & Woods raised their price target on shares of Robinhood Markets from $89.00 to $106.00 and gave the stock a "market perform" rating in a report on Thursday, July 31st. KeyCorp raised their price target on shares of Robinhood Markets from $60.00 to $110.00 and gave the stock an "overweight" rating in a report on Tuesday, July 1st. Cantor Fitzgerald raised their price target on shares of Robinhood Markets from $100.00 to $118.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Morgan Stanley raised their price target on shares of Robinhood Markets from $110.00 to $146.00 and gave the stock an "equal weight" rating in a report on Wednesday, October 1st. Finally, Citigroup raised their price objective on shares of Robinhood Markets from $120.00 to $135.00 and gave the company a "neutral" rating in a research note on Tuesday, September 23rd. Twelve research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Robinhood Markets presently has a consensus rating of "Moderate Buy" and an average target price of $118.94.

Robinhood Markets Stock Down 2.0%

The stock has a market capitalization of $116.81 billion, a P/E ratio of 66.72, a price-to-earnings-growth ratio of 3.64 and a beta of 2.42. The business's 50 day simple moving average is $120.55 and its two-hundred day simple moving average is $87.73.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported $0.42 earnings per share for the quarter, beating analysts' consensus estimates of $0.30 by $0.12. Robinhood Markets had a net margin of 50.13% and a return on equity of 17.48%. The company had revenue of $989.00 million for the quarter, compared to analyst estimates of $893.93 million. During the same period last year, the firm earned $0.21 earnings per share. The firm's revenue was up 45.0% on a year-over-year basis. Analysts predict that Robinhood Markets, Inc. will post 1.35 earnings per share for the current year.

Insider Activity at Robinhood Markets

In related news, Director Meyer Malka sold 1,093,288 shares of the firm's stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $103.87, for a total transaction of $113,559,824.56. Following the transaction, the director directly owned 3,976,234 shares of the company's stock, valued at $413,011,425.58. This trade represents a 21.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Daniel Martin Gallagher, Jr. sold 225,000 shares of the firm's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $99.97, for a total transaction of $22,493,250.00. Following the transaction, the insider directly owned 591,887 shares in the company, 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. Insiders sold 5,181,462 shares of company stock valued at $567,328,871 over the last three months. Insiders own 14.47% of the company's stock.

Institutional Trading of Robinhood Markets

Several hedge funds have recently added to or reduced their stakes in HOOD. WCM Investment Management LLC raised its position in Robinhood Markets by 3,615.7% in the second quarter. WCM Investment Management LLC now owns 11,555,160 shares of the company's stock worth $1,081,910,000 after acquiring an additional 11,244,182 shares during the period. Norges Bank bought a new stake in Robinhood Markets in the second quarter worth about $973,122,000. Kingstone Capital Partners Texas LLC bought a new stake in Robinhood Markets in the second quarter worth about $951,479,000. Vanguard Group Inc. raised its position in Robinhood Markets by 8.6% in the first quarter. Vanguard Group Inc. now owns 74,241,080 shares of the company's stock worth $3,089,914,000 after acquiring an additional 5,874,701 shares during the period. Finally, AGF Management Ltd. increased its stake in shares of Robinhood Markets by 286.0% in the first quarter. AGF Management Ltd. now owns 5,743,715 shares of the company's stock worth $239,053,000 after purchasing an additional 4,255,862 shares in the last quarter. 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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