Robinhood Markets (NASDAQ:HOOD) Stock Price Down 2.2% - Time to Sell?

Key Points

• Robinhood Markets' stock price fell 2.2% during trading, closing at $106.45, with an 80% decline in trading volume compared to its average.
• Analysts show a positive outlook for Robinhood, with several firms raising their target prices, including Barclays and Piper Sandler, both setting targets of $120.00.
• The company reported a 45% year-over-year increase in revenue for the quarter, totaling $989 million, and earnings per share of $0.42, surpassing analyst expectations.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s stock price dropped 2.2% during trading on Wednesday . The company traded as low as $106.53 and last traded at $106.45. Approximately 8,461,041 shares traded hands during trading, a decline of 80% from the average daily volume of 41,417,238 shares. The stock had previously closed at $108.80.

Wall Street Analysts Forecast Growth

HOOD has been the topic of a number of research reports. Barclays raised their target price on shares of Robinhood Markets from $102.00 to $120.00 and gave the stock an "overweight" rating in a research report on Thursday, July 31st. Piper Sandler raised their target price on shares of Robinhood Markets from $110.00 to $120.00 and gave the stock an "overweight" rating in a research report on Thursday, July 31st. The Goldman Sachs Group raised their target price on shares of Robinhood Markets from $91.00 to $104.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Cantor Fitzgerald raised their target price on shares of Robinhood Markets from $100.00 to $118.00 and gave the stock an "overweight" rating in a research report on Thursday, July 31st. Finally, Keefe, Bruyette & Woods raised their target price on shares of Robinhood Markets from $89.00 to $106.00 and gave the stock a "market perform" rating in a research report on Thursday, July 31st. Eleven investment analysts have rated the stock with a Buy rating, six have issued 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 an average price target of $100.31.

Robinhood Markets Stock Down 4.4%

The company has a market capitalization of $92.41 billion, a price-to-earnings ratio of 52.73, a P/E/G ratio of 3.96 and a beta of 2.36. The company's 50 day simple moving average is $100.19 and its two-hundred day simple moving average is $68.95.

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. The company had revenue of $989.00 million during the quarter, compared to the consensus estimate of $893.93 million. Robinhood Markets had a net margin of 50.13% and a return on equity of 17.48%. Robinhood Markets's revenue was up 45.0% compared to the same quarter last year. During the same period last year, the firm earned $0.21 earnings per share. Analysts anticipate that Robinhood Markets, Inc. will post 1.35 EPS for the current year.

Insider Buying and Selling

In other Robinhood Markets news, CTO Jeffrey Tsvi Pinner sold 5,864 shares of the firm's stock in a transaction that occurred on Friday, July 25th. The shares were sold at an average price of $104.73, for a total value of $614,136.72. Following the completion of the sale, the chief technology officer directly owned 3,044 shares in the company, valued at $318,798.12. This trade represents a 65.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Vladimir Tenev sold 385,485 shares of the firm's stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $101.90, for a total transaction of $39,280,921.50. The disclosure for this sale can be found here. Insiders sold 4,644,685 shares of company stock valued at $448,881,884 over the last quarter. Insiders own 19.95% of the company's stock.

Institutional Investors Weigh In On Robinhood Markets

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Orion Porfolio Solutions LLC lifted its position in Robinhood Markets by 39.7% during the second quarter. Orion Porfolio Solutions LLC now owns 26,182 shares of the company's stock valued at $2,451,000 after purchasing an additional 7,443 shares during the period. Thrivent Financial for Lutherans lifted its position in Robinhood Markets by 462.6% during the second quarter. Thrivent Financial for Lutherans now owns 1,192,890 shares of the company's stock valued at $111,537,000 after purchasing an additional 980,868 shares during the period. MASTERINVEST Kapitalanlage GmbH acquired a new position in Robinhood Markets during the second quarter valued at $238,000. Newbridge Financial Services Group Inc. lifted its position in Robinhood Markets by 2,520.0% during the second quarter. Newbridge Financial Services Group Inc. now owns 6,550 shares of the company's stock valued at $613,000 after purchasing an additional 6,300 shares during the period. Finally, Advisory Services Network LLC lifted its position in Robinhood Markets by 54.4% during the second quarter. Advisory Services Network LLC now owns 25,111 shares of the company's stock valued at $2,588,000 after purchasing an additional 8,851 shares during the period. 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.

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