Robinhood Markets (NASDAQ:HOOD) Stock Price Down 2.6% After Insider Selling

Key Points

• Robinhood Markets experienced a significant stock price decline of 2.6% due to insider selling, with over 13 million shares traded during the session.
• Director Baiju Bhatt sold more than 1.5 million shares at an average price of $99.98, totaling over $156 million, contributing to investor concerns.
• Analysts have mixed ratings for Robinhood, with target prices ranging from $48.00 to $130.00, leading to a consensus rating of "Moderate Buy."

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s stock price fell 2.6% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $101.18 and last traded at $102.76. 13,345,728 shares changed hands during mid-day trading, a decline of 68% from the average session volume of 41,701,742 shares. The stock had previously closed at $105.46.

Specifically, Director Baiju Bhatt sold 1,568,421 shares of Robinhood Markets stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $99.98, for a total value of $156,810,731.58. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Baiju Bhatt sold 10,518 shares of the business's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $100.10, for a total transaction of $1,052,851.80. The disclosure for this sale can be found here. In related news, 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 value of $22,493,250.00. Following the transaction, the insider owned 591,887 shares of the company's stock, valued at $59,170,943.39. This trade represents a 27.54% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. JMP Securities upped their target price on shares of Robinhood Markets from $125.00 to $130.00 and gave the stock a "market outperform" rating in a report on Thursday, July 31st. Mizuho set a $120.00 target price on Robinhood Markets and gave the company an "outperform" rating in a report on Thursday, July 31st. Redburn Atlantic restated 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. Piper Sandler increased their target price on Robinhood Markets from $110.00 to $120.00 and gave the company an "overweight" rating in a research note on Thursday, July 31st. Finally, Barclays upped their price target on Robinhood Markets from $102.00 to $120.00 and gave the company an "overweight" rating in a research report on Thursday, July 31st. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and twelve have issued a buy rating to the company. Based on data from MarketBeat, Robinhood Markets presently has a consensus rating of "Moderate Buy" and an average price target of $96.29.

Robinhood Markets Trading Down 2.7%

The firm has a 50 day moving average of $88.57 and a 200-day moving average of $62.82. The company has a market cap of $90.86 billion, a P/E ratio of 52.16, a P/E/G ratio of 4.06 and a beta of 2.36.

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

Hedge Funds Weigh In On Robinhood Markets

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Hantz Financial Services Inc. lifted its position in Robinhood Markets by 120.3% during the second quarter. Hantz Financial Services Inc. now owns 271 shares of the company's stock worth $25,000 after buying an additional 148 shares in the last quarter. V Square Quantitative Management LLC purchased a new position in Robinhood Markets during the second quarter worth approximately $36,000. LGT Financial Advisors LLC acquired a new stake in Robinhood Markets during the second quarter worth $37,000. Atlantic Union Bankshares Corp acquired a new stake in Robinhood Markets during the second quarter worth $37,000. Finally, REAP Financial Group LLC increased its stake in Robinhood Markets by 44.1% during the second quarter. REAP Financial Group LLC now owns 523 shares of the company's stock worth $49,000 after acquiring an additional 160 shares during the last quarter. Hedge funds and other 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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