Robinhood Markets (NASDAQ:HOOD) Stock Price Down 3.6% - Time to Sell?

Key Points

• Robinhood Markets' shares dropped by 3.6% to $100.32, with a trading volume down 62% from the average.
• Analyst ratings are varied, with Citigroup upgrading its price target to $120 while Redburn Atlantic maintains a "sell" rating with a target of $48.
• The company reported a 45% increase in quarterly revenue year-over-year, significantly beating analysts' expectations with $989 million in revenue.

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) dropped 3.6% on Tuesday . The stock traded as low as $97.90 and last traded at $100.32. Approximately 15,808,877 shares traded hands during trading, a decline of 62% from the average daily volume of 41,208,266 shares. The stock had previously closed at $104.03.

Analyst Upgrades and Downgrades

HOOD has been the subject of several recent research reports. Needham & Company LLC lifted their price objective on Robinhood Markets from $71.00 to $120.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Deutsche Bank Aktiengesellschaft lifted their target price on shares of Robinhood Markets from $70.00 to $85.00 and gave the stock a "buy" rating in a research note on Monday, June 9th. Mizuho upped their price target on shares of Robinhood Markets from $99.00 to $120.00 and gave the company an "outperform" rating in a research note on Thursday, July 31st. Citigroup raised their price objective on shares of Robinhood Markets from $100.00 to $120.00 and gave the stock a "neutral" rating in a report on Thursday, July 31st. Finally, Compass Point boosted their target price on shares of Robinhood Markets from $64.00 to $96.00 and gave the company a "buy" rating in a report on Friday, June 27th. Eleven analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $100.31.

Robinhood Markets Price Performance

The firm has a market capitalization of $91.45 billion, a P/E ratio of 52.24, a P/E/G ratio of 3.69 and a beta of 2.36. The firm's 50 day simple moving average is $103.35 and its two-hundred day simple moving average is $70.95.

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 analysts' consensus estimates of $0.30 by $0.12. Robinhood Markets had a return on equity of 17.48% and a net margin of 50.13%.The company had revenue of $989.00 million during the quarter, compared to analyst estimates of $893.93 million. During the same quarter in the previous year, the company posted $0.21 EPS. Robinhood Markets's revenue for the quarter was up 45.0% on a year-over-year basis. As a group, equities research analysts forecast that Robinhood Markets, Inc. will post 1.35 EPS for the current year.

Insider Activity

In related news, CTO Jeffrey Tsvi Pinner sold 5,864 shares of the company's stock in a transaction on Friday, July 25th. The shares were sold at an average price of $104.73, for a total transaction of $614,136.72. Following the completion of the sale, the chief technology officer directly owned 3,044 shares in the company, valued at $318,798.12. This represents a 65.83% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Daniel Martin Gallagher, Jr. sold 25,000 shares of the business's stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $104.23, for a total transaction of $2,605,750.00. Following the completion of the transaction, the insider owned 566,887 shares in the company, valued at $59,086,632.01. The trade was a 4.22% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 5,682,741 shares of company stock valued at $561,239,411. Corporate insiders own 14.47% of the company's stock.

Hedge Funds Weigh In On Robinhood Markets

Several hedge funds have recently made changes to their positions in the business. Hantz Financial Services Inc. lifted its stake in Robinhood Markets by 120.3% in the second quarter. Hantz Financial Services Inc. now owns 271 shares of the company's stock worth $25,000 after acquiring an additional 148 shares during the period. Smithfield Trust Co bought a new stake in shares of Robinhood Markets during the 2nd quarter valued at about $29,000. Twin Peaks Wealth Advisors LLC purchased a new position in shares of Robinhood Markets during the second quarter valued at about $34,000. V Square Quantitative Management LLC bought a new position in Robinhood Markets in the second quarter worth about $36,000. Finally, LGT Financial Advisors LLC purchased a new stake in Robinhood Markets in the second quarter worth about $37,000. 93.27% of the stock is 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.