Robinhood Markets (NASDAQ:HOOD) Trading Down 2.8% - Should You Sell?

Key Points

• Robinhood shares fell 2.8% on Thursday, trading as low as $99.32 after closing at $104.48 the prior day, even as trading volume remained heavy at over 16 million shares.
• Analysts remain mostly bullish, with several firms raising price targets and the consensus rating sitting at “Moderate Buy” with a target price of $122.22. KeyCorp, Needham, BTIG, and Mizuho all recently lifted targets, suggesting Wall Street still sees upside.
• New growth drivers and near-term event risk are in focus: Bernstein said Robinhood’s prediction-market revenue could reach $1.7 billion by 2028, but investors are also watching the upcoming Q2 earnings report and recent insider/ARK selling, which may pressure sentiment.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s stock price fell 2.8% on Thursday . The stock traded as low as $99.32 and last traded at $101.58. 16,220,213 shares changed hands during mid-day trading, a decline of 45% from the average daily volume of 29,515,754 shares. The stock had previously closed at $104.48.

Robinhood Markets News Roundup

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

• Positive Sentiment: KeyCorp raised its price target on Robinhood Markets (HOOD) to $125 and kept an overweight rating, signaling Wall Street still sees meaningful upside ahead of the company’s Q2 report. Benzinga report on KeyCorp target raise
• Positive Sentiment: Bernstein said Robinhood’s prediction-market revenue could reach $1.7 billion by 2028 and may overtake crypto revenue as early as next quarter, highlighting a potentially important new growth driver. Yahoo Finance article on prediction markets
• Positive Sentiment: Robinhood launched a Platinum Card-related WHOOP benefit and continues expanding its premium ecosystem, which may help strengthen user engagement and subscription revenue. Yahoo Finance article on WHOOP partnership
• Neutral Sentiment: Analysts expect Robinhood to beat Q2 earnings estimates, but the upcoming report still creates event risk for the stock as investors wait for confirmation. Zacks earnings preview
• Neutral Sentiment: Recent commentary also notes Robinhood’s trading volume and market moves have been affected by broader tech weakness and portfolio rebalancing by major investors like ARK Invest. Benzinga report on stock falling
• Negative Sentiment: ARK Invest reportedly sold more HOOD shares again, which can weigh on sentiment even if the company’s fundamentals remain intact. Stocktwits article on ARK selling HOOD

Analysts Set New Price Targets

Several research firms have commented on HOOD. Needham & Company LLC upped their target price on shares of Robinhood Markets from $97.00 to $123.00 and gave the stock a "buy" rating in a research report on Tuesday. Argus boosted their price objective on Robinhood Markets from $90.00 to $110.00 and gave the stock a "buy" rating in a research report on Wednesday, June 17th. Keefe, Bruyette & Woods decreased their price objective on Robinhood Markets from $75.00 to $65.00 and set a "market perform" rating for the company in a report on Wednesday, April 29th. BTIG Research reaffirmed a "buy" rating and set a $125.00 target price on shares of Robinhood Markets in a research note on Thursday, July 2nd. Finally, Mizuho boosted their price target on Robinhood Markets from $115.00 to $130.00 and gave the stock an "outperform" rating in a research report on Thursday, July 2nd. Twenty-one analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, Robinhood Markets presently has a consensus rating of "Moderate Buy" and a consensus target price of $122.22.

Robinhood Markets Stock Performance

The company's 50 day moving average price is $95.75 and its 200-day moving average price is $88.67. The company has a market cap of $91.47 billion, a price-to-earnings ratio of 49.07, a PEG ratio of 2.25 and a beta of 2.33.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its earnings results on Tuesday, April 28th. The company reported $0.38 earnings per share for the quarter, missing analysts' consensus estimates of $0.39 by ($0.01). The business had revenue of $1.07 billion for the quarter, compared to the consensus estimate of $1.14 billion. Robinhood Markets had a return on equity of 21.39% and a net margin of 41.12%.The company's quarterly revenue was up 15.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.37 earnings per share. As a group, sell-side analysts forecast that Robinhood Markets, Inc. will post 1.86 earnings per share for the current year.

Insider Activity at Robinhood Markets

In related news, insider Steven M. Quirk sold 19,377 shares of Robinhood Markets stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $119.96, for a total value of $2,324,464.92. Following the transaction, the insider owned 62,612 shares of the company's stock, valued at approximately $7,510,935.52. This trade represents a 23.63% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Oluwadara Johnson Treseder sold 3,750 shares of the business's stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $117.50, for a total value of $440,625.00. Following the sale, the director owned 72,442 shares in the company, valued at approximately $8,511,935. The trade was a 4.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders acquired 680,000 shares of company stock valued at $55,306,560 and sold 587,875 shares valued at $62,602,915. 13.48% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Robinhood Markets

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of Robinhood Markets by 1.4% in the fourth quarter. Vanguard Group Inc. now owns 95,771,497 shares of the company's stock worth $10,831,756,000 after buying an additional 1,334,443 shares during the period. State Street Corp boosted its position in Robinhood Markets by 2.7% during the 4th quarter. State Street Corp now owns 33,121,452 shares of the company's stock worth $3,746,036,000 after acquiring an additional 875,297 shares during the period. Geode Capital Management LLC boosted its position in Robinhood Markets by 1.7% during the 4th quarter. Geode Capital Management LLC now owns 21,171,925 shares of the company's stock worth $2,386,944,000 after acquiring an additional 356,902 shares during the period. Morgan Stanley grew its stake in Robinhood Markets by 23.9% during the 4th quarter. Morgan Stanley now owns 10,683,776 shares of the company's stock valued at $1,208,335,000 after acquiring an additional 2,061,832 shares in the last quarter. Finally, Norges Bank purchased a new stake in shares of Robinhood Markets in the fourth quarter worth approximately $1,202,160,000. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

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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