Robinhood Markets (NASDAQ:HOOD) Trading Down 2.2% - Should You 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 mid-day 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 analyst reports. Citigroup lifted their target price on shares of Robinhood Markets from $100.00 to $120.00 and gave the stock a "neutral" rating in a research report on Thursday, July 31st. Morgan Stanley lifted their target price on shares of Robinhood Markets from $43.00 to $110.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 15th. 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. Compass Point raised their price target on shares of Robinhood Markets from $64.00 to $96.00 and gave the stock a "buy" rating in a report on Friday, June 27th. Finally, Redburn Atlantic reissued a "sell" rating and issued a $48.00 price target (up previously from $40.00) on shares of Robinhood Markets in a report on Monday, June 9th. Eleven research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $100.31.

Robinhood Markets Trading Up 0.3%

The business's 50 day moving average price is $101.69 and its two-hundred day moving average price is $69.95. The stock has a market cap of $92.45 billion, a P/E ratio of 52.81, a price-to-earnings-growth ratio of 3.81 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 analysts' consensus estimates of $0.30 by $0.12. The firm had revenue of $989.00 million for the quarter, compared to analyst estimates of $893.93 million. Robinhood Markets had a net margin of 50.13% and a return on equity of 17.48%. The company's revenue for the quarter was up 45.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.21 EPS. As a group, analysts expect that Robinhood Markets, Inc. will post 1.35 earnings per share for the current year.

Insider Activity

In related news, Director Baiju Bhatt sold 418,338 shares of the business's stock in a transaction dated Thursday, August 14th. The shares were sold at an average price of $109.39, for a total transaction of $45,761,993.82. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Steven M. Quirk sold 40,131 shares of the business's stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $104.71, for a total transaction of $4,202,117.01. Following the sale, the insider directly owned 120,408 shares in the company, valued at $12,607,921.68. The trade was a 25.00% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 5,818,493 shares of company stock worth $570,818,204. 14.47% of the stock is owned by company insiders.

Institutional Investors Weigh In On Robinhood Markets

Several hedge funds have recently bought and sold shares of HOOD. MetLife Investment Management LLC boosted its stake in Robinhood Markets by 1.5% during the fourth quarter. MetLife Investment Management LLC now owns 11,806 shares of the company's stock worth $440,000 after acquiring an additional 171 shares in the last quarter. Integrated Wealth Concepts LLC bought a new stake in Robinhood Markets during the fourth quarter worth about $430,000. Coldstream Capital Management Inc. bought a new stake in Robinhood Markets during the fourth quarter worth about $228,000. The Manufacturers Life Insurance Company boosted its stake in Robinhood Markets by 11.5% during the fourth quarter. The Manufacturers Life Insurance Company now owns 44,296 shares of the company's stock worth $1,650,000 after acquiring an additional 4,556 shares in the last quarter. Finally, Northern Trust Corp boosted its stake in Robinhood Markets by 27.1% during the fourth quarter. Northern Trust Corp now owns 3,897,575 shares of the company's stock worth $145,224,000 after acquiring an additional 830,703 shares in the last quarter. Institutional investors own 93.27% of the company's stock.

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.