Robinhood Markets (NASDAQ:HOOD) Trading Down 0.3% on Disappointing Earnings

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shares were down 0.3% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $46.53 and last traded at $48.96. Approximately 40,412,933 shares were traded during trading, an increase of 60% from the average daily volume of 25,302,439 shares. The stock had previously closed at $49.11.

The company reported $0.37 EPS for the quarter, missing analysts' consensus estimates of $0.41 by ($0.04). Robinhood Markets had a net margin of 47.81% and a return on equity of 13.53%. The business had revenue of $927.00 million for the quarter, compared to the consensus estimate of $917.12 million. During the same period in the prior year, the business earned $0.18 earnings per share. Robinhood Markets's revenue was up 50.0% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. Cantor Fitzgerald assumed coverage on Robinhood Markets in a report on Thursday, March 6th. They issued an "overweight" rating and a $69.00 target price on the stock. Needham & Company LLC reduced their target price on Robinhood Markets from $62.00 to $58.00 and set a "buy" rating on the stock in a report on Thursday. Compass Point initiated coverage on Robinhood Markets in a report on Wednesday, March 19th. They issued a "buy" rating and a $61.00 target price on the stock. Citigroup dropped their price target on Robinhood Markets from $60.00 to $50.00 and set a "neutral" rating for the company in a research report on Wednesday, April 2nd. Finally, JPMorgan Chase & Co. lifted their price target on Robinhood Markets from $39.00 to $45.00 and gave the stock a "neutral" rating in a research report on Thursday, February 13th. Six analysts have rated the stock with a hold rating and twelve have given a buy rating to the company's stock. According to data from MarketBeat, Robinhood Markets currently has a consensus rating of "Moderate Buy" and an average price target of $53.65.

Insider Buying and Selling

In other Robinhood Markets news, insider Daniel Martin Gallagher, Jr. sold 25,000 shares of the firm's stock in a transaction dated Monday, February 3rd. The stock was sold at an average price of $51.60, for a total value of $1,290,000.00. Following the completion of the sale, the insider now owns 706,642 shares of the company's stock, valued at approximately $36,462,727.20. This trade represents a 3.42 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Vladimir Tenev sold 750,000 shares of the firm's stock in a transaction dated Tuesday, April 1st. The stock was sold at an average price of $41.96, for a total value of $31,470,000.00. The disclosure for this sale can be found here. Insiders have sold a total of 2,334,593 shares of company stock valued at $114,815,021 over the last quarter. 19.95% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Robinhood Markets

Institutional investors have recently added to or reduced their stakes in the business. Whipplewood Advisors LLC boosted its holdings in Robinhood Markets by 564.4% in the first quarter. Whipplewood Advisors LLC now owns 598 shares of the company's stock worth $25,000 after acquiring an additional 508 shares in the last quarter. New Wave Wealth Advisors LLC acquired a new stake in shares of Robinhood Markets during the fourth quarter worth about $26,000. Wayfinding Financial LLC acquired a new stake in shares of Robinhood Markets during the first quarter worth about $30,000. CoreCap Advisors LLC lifted its holdings in shares of Robinhood Markets by 191.6% during the fourth quarter. CoreCap Advisors LLC now owns 837 shares of the company's stock worth $31,000 after purchasing an additional 550 shares during the period. Finally, Creative Financial Designs Inc. ADV lifted its holdings in shares of Robinhood Markets by 750.0% during the fourth quarter. Creative Financial Designs Inc. ADV now owns 850 shares of the company's stock worth $32,000 after purchasing an additional 750 shares during the period. Institutional investors and hedge funds own 93.27% of the company's stock.

Robinhood Markets Price Performance

The stock has a market cap of $43.48 billion, a price-to-earnings ratio of 31.26, a P/E/G ratio of 1.05 and a beta of 2.17. The stock has a fifty day moving average of $43.10 and a 200 day moving average of $41.27.

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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