Robinhood Markets (NASDAQ:HOOD) Shares Down 5.9% After Insider Selling

Key Points

• Robinhood Markets shares fell by 5.9% to $96.80, with trading volume dropping significantly to approximately 22.3 million shares, well below the average of 41 million shares.
• Several analysts have raised their price targets for Robinhood Markets, with KeyCorp increasing theirs from $60.00 to $110.00 and Needham & Company raising theirs from $71.00 to $120.00, reflecting positive sentiment from the majority of financial analysts.
• Recent insider transactions include Steven M. Quirk selling over 40,000 shares, indicating a potential decrease in insider confidence, as insiders collectively sold shares worth more than $561 million in the last 90 days.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s share price traded down 5.9% during mid-day trading on Friday following insider selling activity. The stock traded as low as $96.63 and last traded at $96.80. 22,285,736 shares traded hands during trading, a decline of 46% from the average session volume of 41,055,641 shares. The stock had previously closed at $102.91.

Specifically, insider Daniel Martin Gallagher, Jr. sold 25,000 shares of the stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $100.92, for a total transaction of $2,523,000.00. Following the completion of the sale, the insider directly owned 610,949 shares in the company, valued at $61,656,973.08. This represents a 3.93% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Steven M. Quirk sold 60,113 shares of the stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $100.91, for a total value of $6,066,002.83. Following the sale, the insider owned 94,454 shares of the company's stock, valued at $9,531,353.14. This represents a 38.89% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on HOOD shares. Cantor Fitzgerald increased their target price on Robinhood Markets from $100.00 to $118.00 and gave the stock an "overweight" rating in a research report on Thursday, July 31st. Keefe, Bruyette & Woods lifted their target price on Robinhood Markets from $89.00 to $106.00 and gave the stock a "market perform" rating in a report on Thursday, July 31st. Piper Sandler lifted their target price on Robinhood Markets from $110.00 to $120.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Barclays lifted their target price on Robinhood Markets from $102.00 to $120.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Finally, Citigroup lifted their target price on Robinhood Markets from $100.00 to $120.00 and gave the stock a "neutral" rating in a report on Thursday, July 31st. Eleven equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $100.31.

Robinhood Markets Price Performance

The company has a market capitalization of $89.98 billion, a PE ratio of 51.40, a P/E/G ratio of 3.71 and a beta of 2.36. The company has a 50-day moving average of $103.72 and a two-hundred day moving average of $71.31.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released 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 for the quarter, compared to the consensus estimate of $893.93 million. Robinhood Markets had a return on equity of 17.48% and a net margin of 50.13%.Robinhood Markets's quarterly revenue was up 45.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.21 earnings per share. As a group, research analysts anticipate that Robinhood Markets, Inc. will post 1.35 EPS for the current year.

Hedge Funds Weigh In On Robinhood Markets

Several institutional investors and hedge funds have recently bought and sold shares of HOOD. Vanguard Group Inc. lifted its position in shares of Robinhood Markets by 1.8% in the second quarter. Vanguard Group Inc. now owns 75,612,131 shares of the company's stock valued at $7,079,564,000 after acquiring an additional 1,371,051 shares in the last quarter. Newlands Management Operations LLC increased its holdings in shares of Robinhood Markets by 1.1% in the fourth quarter. Newlands Management Operations LLC now owns 24,158,860 shares of the company's stock worth $900,159,000 after purchasing an additional 273,860 shares during the last quarter. State Street Corp increased its holdings in shares of Robinhood Markets by 9.2% in the second quarter. State Street Corp now owns 15,870,421 shares of the company's stock worth $1,485,948,000 after purchasing an additional 1,341,204 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Robinhood Markets by 4.0% in the second quarter. Geode Capital Management LLC now owns 13,176,539 shares of the company's stock worth $1,233,840,000 after purchasing an additional 507,926 shares during the last quarter. Finally, WCM Investment Management LLC increased its holdings in shares of 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 purchasing an additional 11,244,182 shares during the last quarter. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

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.