Robinhood Markets (NASDAQ:HOOD) Stock Price Down 3.4% - Should You Sell?

Key Points

• Robinhood Markets' stock price dropped 3.4%, trading as low as $93.36 before recovering to $99.57, with a significant decrease in trading volume.
• Multiple analysts have raised their price targets for Robinhood's shares, with estimates now ranging from $106 to $130, reflecting a generally positive outlook despite recent price fluctuations.
• The company reported a 45% increase in revenue year-over-year, reaching $989 million, and exceeded earnings expectations by reporting $0.42 per share against an estimate of $0.30.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shares traded down 3.4% on Friday . The stock traded as low as $93.36 and last traded at $99.57. 29,697,649 shares changed hands during trading, a decline of 29% from the average session volume of 41,593,129 shares. The stock had previously closed at $103.05.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. JMP Securities raised their target price on shares of Robinhood Markets from $125.00 to $130.00 and gave the company a "market outperform" rating in a research note on Thursday. Barclays lifted their target price on shares of Robinhood Markets from $102.00 to $120.00 and gave the stock an "overweight" rating in a report on Thursday. Cantor Fitzgerald lifted their target price on shares of Robinhood Markets from $100.00 to $118.00 and gave the stock an "overweight" rating in a report on Thursday. Keefe, Bruyette & Woods boosted their price objective on Robinhood Markets from $89.00 to $106.00 and gave the stock a "market perform" rating in a report on Thursday. Finally, Mizuho set a $120.00 price target on Robinhood Markets and gave the company an "outperform" rating in a research note on Thursday. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and twelve have given a buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $96.29.

Robinhood Markets Stock Performance

The business's 50 day moving average price is $86.18 and its 200 day moving average price is $61.49. The firm has a market cap of $89.58 billion, a price-to-earnings ratio of 51.46, a PEG ratio of 5.40 and a beta of 2.36.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $0.42 earnings per share for the quarter, topping the consensus estimate of $0.30 by $0.12. The company 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 17.69% and a net margin of 50.13%. The firm's revenue for the quarter was up 45.0% compared to the same quarter last year. During the same period in the prior year, the business posted $0.21 earnings per share. Sell-side analysts anticipate that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Insider Activity at Robinhood Markets

In other news, insider Steven M. Quirk sold 104,887 shares of Robinhood Markets stock in a transaction dated Tuesday, June 3rd. The stock was sold at an average price of $70.14, for a total value of $7,356,774.18. Following the completion of the transaction, the insider owned 228,621 shares in the company, valued at approximately $16,035,476.94. This trade represents a 31.45% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Vladimir Tenev sold 750,000 shares of Robinhood Markets stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $93.27, for a total transaction of $69,952,500.00. The disclosure for this sale can be found here. Over the last three months, insiders sold 3,026,690 shares of company stock worth $257,160,102. Company insiders own 14.47% of the company's stock.

Institutional Trading of Robinhood Markets

Several institutional investors have recently modified their holdings of HOOD. IQ EQ FUND MANAGEMENT IRELAND Ltd lifted its stake in Robinhood Markets by 117.7% in the second quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 124,558 shares of the company's stock valued at $11,662,000 after buying an additional 67,353 shares during the last quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund raised its holdings in shares of Robinhood Markets by 24.1% in the second quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 161,400 shares of the company's stock valued at $15,112,000 after buying an additional 31,300 shares during the last quarter. Teacher Retirement System of Texas raised its holdings in shares of Robinhood Markets by 24.1% in the second quarter. Teacher Retirement System of Texas now owns 111,043 shares of the company's stock valued at $10,397,000 after buying an additional 21,549 shares during the last quarter. Y Intercept Hong Kong Ltd raised its holdings in shares of Robinhood Markets by 62.1% in the second quarter. Y Intercept Hong Kong Ltd now owns 12,708 shares of the company's stock valued at $1,190,000 after buying an additional 4,870 shares during the last quarter. Finally, Convergence Investment Partners LLC purchased a new stake in Robinhood Markets during the 2nd quarter valued at approximately $1,927,000. Hedge funds and other 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.

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