Robinhood Markets (NASDAQ:HOOD) Trading Down 3.3% Following Insider Selling

Key Points

• Robinhood Markets' stock fell 3.3% to $122.65 amid insider selling by CTO Jeffrey Tsvi Pinner, who sold 5,864 shares at an average price of $124.13.
• Analysts have raised their price targets for Robinhood, with Morgan Stanley setting a new target of $110.00 and eleven analysts rating the stock as a "Buy."
• Robinhood reported $989 million in revenue for the recent quarter, a 45% year-over-year increase, outpacing analyst expectations of $893.93 million.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s stock price dropped 3.3% during mid-day trading on Thursday following insider selling activity. The stock traded as low as $120.62 and last traded at $122.65. Approximately 32,764,100 shares were traded during mid-day trading, a decline of 22% from the average daily volume of 42,227,398 shares. The stock had previously closed at $126.80.

Specifically, CTO Jeffrey Tsvi Pinner sold 5,864 shares of the company's stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $124.13, for a total transaction of $727,898.32. Following the completion of the transaction, the chief technology officer owned 17,816 shares of the company's stock, valued at approximately $2,211,500.08. This represents a 24.76% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Analyst Ratings Changes

Several research firms recently issued reports on HOOD. Morgan Stanley increased their price target on shares of Robinhood Markets from $43.00 to $110.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 15th. Keefe, Bruyette & Woods increased their price target on shares of Robinhood Markets from $89.00 to $106.00 and gave the company a "market perform" rating in a research note on Thursday, July 31st. The Goldman Sachs Group lifted their target price on shares of Robinhood Markets from $91.00 to $104.00 and gave the stock a "buy" rating in a report on Monday, July 7th. Needham & Company LLC lifted their target price on shares of Robinhood Markets from $71.00 to $120.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Finally, Citigroup lifted their price target on shares of Robinhood Markets from $120.00 to $135.00 and gave the stock a "neutral" rating in a research report on Tuesday. Eleven investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Robinhood Markets presently has an average rating of "Moderate Buy" and an average target price of $104.06.

Robinhood Markets Stock Performance

The company has a market capitalization of $109.00 billion, a P/E ratio of 62.26, a PEG ratio of 4.68 and a beta of 2.36. The stock's fifty day moving average price is $109.90 and its 200-day moving average price is $77.57.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $0.42 EPS for the quarter, beating analysts' consensus estimates of $0.30 by $0.12. Robinhood Markets had a net margin of 50.13% and a return on equity of 17.48%. The business had revenue of $989.00 million for the quarter, compared to analyst estimates of $893.93 million. During the same quarter in the prior year, the business earned $0.21 EPS. Robinhood Markets's quarterly revenue was up 45.0% on a year-over-year basis. On average, research analysts predict that Robinhood Markets, Inc. will post 1.35 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of HOOD. Ameriflex Group Inc. acquired a new position in Robinhood Markets in the 4th quarter valued at about $48,000. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in shares of Robinhood Markets during the 4th quarter worth approximately $4,886,000. Siemens Fonds Invest GmbH acquired a new position in shares of Robinhood Markets during the 4th quarter worth approximately $217,000. Wellington Management Group LLP acquired a new position in shares of Robinhood Markets during the 4th quarter worth approximately $588,000. Finally, MassMutual Private Wealth & Trust FSB grew its position in shares of Robinhood Markets by 139.9% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 854 shares of the company's stock worth $36,000 after purchasing an additional 498 shares in the last quarter. Institutional investors and hedge funds own 93.27% of the company's stock.

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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