Robinhood Markets (NASDAQ:HOOD) Trading Down 2.8% - Here's What Happened

Key Points

• Robinhood shares fell 2.8% on Tuesday, trading as low as $85.56 after opening near $90.73, even as volume surged to more than 42 million shares, well above average.
• Recent news flow was mixed: Robinhood completed its WonderFi acquisition to expand in Canada and crypto, but it also faces pressure from Binance entering U.S. stock and ETF trading and from continued concerns about weak crypto revenue.
• Analyst sentiment remains cautiously positive overall, with a consensus rating of “Moderate Buy” and an average price target of $105.96, though several firms recently cut targets or downgraded the stock.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s stock price traded down 2.8% during trading on Tuesday . The company traded as low as $85.56 and last traded at $88.2120. 42,428,828 shares changed hands during trading, an increase of 79% from the average session volume of 23,683,998 shares. The stock had previously closed at $90.73.

Robinhood Markets News Roundup

Here are the key news stories impacting Robinhood Markets this week:

• Positive Sentiment: Robinhood completed its WonderFi acquisition, expanding into Canada and strengthening its crypto and international growth story. Robinhood Completes Acquisition of WonderFi
• Positive Sentiment: Director Meyer Malka bought 249,000 shares, a large insider purchase that signals confidence in Robinhood’s outlook. SEC filing
• Positive Sentiment: KeyCorp reaffirmed an Overweight rating with a $100 price target, suggesting analysts still see upside from current levels. Benzinga report on KeyCorp rating
• Neutral Sentiment: Robinhood’s new AI-powered trading and credit card tools are keeping the stock in focus as the company tries to broaden its “super app” strategy. Robinhood Markets (HOOD) Is Up 28.1% After Launching Agentic AI Trading And Credit Card Tools
• Neutral Sentiment: The Supreme Court is seeking input on Robinhood’s IPO lawsuit appeal, keeping a legal overhang on the name. Supreme Court Seeks Solicitor General's View of Robinhood's Appeal of Alleged IPO Omissions
• Negative Sentiment: Binance’s rollout of U.S. stock and ETF trading increases competitive pressure in Robinhood’s core brokerage market. Crypto exchange Binance rolls out trading in US stocks, ETFs
• Negative Sentiment: Recent commentary also highlighted weakness in Robinhood’s crypto revenue, with U.S. crypto revenue reportedly down sharply in the latest quarter, which may be pressuring sentiment. Can WonderFi Buyout Help Revive Robinhood's Crypto Growth Story?

Analysts Set New Price Targets

A number of equities research analysts recently commented on the stock. Keefe, Bruyette & Woods decreased their target price on shares of Robinhood Markets from $75.00 to $65.00 and set a "market perform" rating for the company in a research report on Wednesday, April 29th. Zacks Research lowered shares of Robinhood Markets from a "hold" rating to a "strong sell" rating in a research note on Wednesday, April 8th. JPMorgan Chase & Co. dropped their price target on shares of Robinhood Markets from $113.00 to $92.00 and set a "neutral" rating on the stock in a research report on Thursday, April 23rd. Mizuho lifted their target price on shares of Robinhood Markets from $110.00 to $115.00 and gave the company an "outperform" rating in a research report on Friday. Finally, Wall Street Zen downgraded shares of Robinhood Markets from a "hold" rating to a "sell" rating in a research note on Saturday, February 14th. Nineteen equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $105.96.

Robinhood Markets Stock Performance

The firm's 50 day moving average is $76.96 and its two-hundred day moving average is $93.93. The stock has a market capitalization of $79.44 billion, a PE ratio of 42.61, a P/E/G ratio of 2.94 and a beta of 2.35.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last announced its earnings results on Tuesday, April 28th. The company reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.01). Robinhood Markets had a return on equity of 21.39% and a net margin of 41.12%.The business had revenue of $1.07 billion for the quarter, compared to analysts' expectations of $1.14 billion. During the same period in the previous year, the company earned $0.37 earnings per share. Robinhood Markets's quarterly revenue was up 15.1% on a year-over-year basis. On average, analysts anticipate that Robinhood Markets, Inc. will post 1.83 EPS for the current year.

Insider Activity at Robinhood Markets

In other news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the company's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $76.89, for a total value of $768,900.00. Following the completion of the transaction, the insider owned 432,849 shares in the company, valued at approximately $33,281,759.61. This represents a 2.26% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Meyer Malka bought 249,000 shares of the stock in a transaction dated Thursday, May 28th. The stock was bought at an average price of $80.39 per share, with a total value of $20,017,110.00. Following the acquisition, the director owned 3,493,427 shares in the company, valued at approximately $280,836,596.53. This represents a 7.67% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have sold a total of 550,765 shares of company stock worth $40,191,940 over the last ninety days. 19.95% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Sound Income Strategies LLC boosted its stake in Robinhood Markets by 152.6% during the 4th quarter. Sound Income Strategies LLC now owns 240 shares of the company's stock worth $26,000 after purchasing an additional 145 shares during the period. CYBER HORNET ETFs LLC boosted its stake in shares of Robinhood Markets by 527.8% during the 4th quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company's stock worth $26,000 after purchasing an additional 190 shares during the last quarter. Elyxium Wealth LLC acquired a new stake in shares of Robinhood Markets during the 4th quarter worth about $27,000. MV Capital Management Inc. acquired a new stake in shares of Robinhood Markets during the 4th quarter worth about $27,000. Finally, Swiss RE Ltd. acquired a new stake in shares of Robinhood Markets during the 4th quarter worth about $27,000. Hedge funds and other institutional investors own 93.27% of the company's stock.

About Robinhood Markets

Robinhood Markets, Inc NASDAQ: HOOD is a U.S.-based financial services company best known for its mobile-first brokerage platform that aims to "democratize finance for all." Founded in 2013 by Vladimir Tenev and Baiju Bhatt and headquartered in Menlo Park, California, the company built early traction by offering commission-free trading and a simplified user experience that attracted a large base of retail investors.

Robinhood's core products and services include a mobile app and web platform for trading U.S.

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