Robinhood Markets (NASDAQ:HOOD) Trading Down 4.1% - Here's What Happened

Key Points

• Robinhood Markets shares fell by 4.1% in mid-day trading, reaching a low of $133.05 and a last traded price of $134.95, with a significant drop in trading volume.
• Multiple research firms have raised their target prices for Robinhood, with Mizuho increasing it from $120 to $145, indicating a positive outlook among analysts.
• Insider trading activity has been notable, with CEO Vladimir Tenev selling 750,000 shares at an average price of $139.73, contributing to over 5.5 million shares sold by insiders in the last quarter.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shares dropped 4.1% during mid-day trading on Tuesday . The stock traded as low as $133.05 and last traded at $134.95. Approximately 30,917,046 shares were traded during trading, a decline of 26% from the average daily volume of 41,667,941 shares. The stock had previously closed at $140.68.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on HOOD. Mizuho raised their target price on Robinhood Markets from $120.00 to $145.00 and gave the company an "outperform" rating in a report on Wednesday, September 10th. Cantor Fitzgerald raised their target price on Robinhood Markets from $100.00 to $118.00 and gave the company an "overweight" rating in a report on Thursday, July 31st. Citizens Jmp raised their target price on Robinhood Markets from $130.00 to $170.00 and gave the company a "mkt outperform" rating in a report on Thursday, October 9th. Compass Point raised their target price on Robinhood Markets from $64.00 to $96.00 and gave the company a "buy" rating in a report on Friday, June 27th. Finally, Keefe, Bruyette & Woods raised their target price on Robinhood Markets from $89.00 to $106.00 and gave the company a "market perform" rating in a report on Thursday, July 31st. Twelve investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $118.94.

Robinhood Markets Stock Performance

The firm has a market cap of $119.93 billion, a P/E ratio of 68.50, a P/E/G ratio of 3.77 and a beta of 2.42. The company has a 50-day moving average of $119.39 and a 200 day moving average of $87.08.

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

Insider Transactions at Robinhood Markets

In other Robinhood Markets news, insider Daniel Martin Gallagher, Jr. sold 225,000 shares of Robinhood Markets stock in a transaction on Friday, August 1st. The stock was sold at an average price of $99.97, for a total value of $22,493,250.00. Following the completion of the transaction, the insider owned 591,887 shares in the company, valued at approximately $59,170,943.39. The trade was a 27.54% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Vladimir Tenev sold 750,000 shares of Robinhood Markets stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $139.73, for a total value of $104,797,500.00. The disclosure for this sale can be found here. In the last quarter, insiders have sold 5,566,947 shares of company stock worth $606,609,792. 19.95% of the stock is owned by company insiders.

Institutional Investors Weigh In On Robinhood Markets

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Wedmont Private Capital raised its position in shares of Robinhood Markets by 0.4% during the third quarter. Wedmont Private Capital now owns 25,319 shares of the company's stock worth $3,671,000 after acquiring an additional 113 shares during the last quarter. True Vision MN LLC raised its position in shares of Robinhood Markets by 1.7% during the second quarter. True Vision MN LLC now owns 6,858 shares of the company's stock worth $642,000 after acquiring an additional 116 shares during the last quarter. Forum Financial Management LP raised its position in shares of Robinhood Markets by 0.8% during the second quarter. Forum Financial Management LP now owns 17,997 shares of the company's stock worth $1,685,000 after acquiring an additional 134 shares during the last quarter. Hemington Wealth Management raised its position in shares of Robinhood Markets by 22.5% during the second quarter. Hemington Wealth Management now owns 779 shares of the company's stock worth $72,000 after acquiring an additional 143 shares during the last quarter. Finally, Ballentine Partners LLC raised its position in shares of Robinhood Markets by 2.3% during the second quarter. Ballentine Partners LLC now owns 6,624 shares of the company's stock worth $620,000 after acquiring an additional 148 shares during the last quarter. Institutional investors own 93.27% of the company's stock.

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.

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