Robinhood Markets (NASDAQ:HOOD) Trading Down 6.6% on Insider Selling

Key Points

• Robinhood shares fell 6.6% on Friday after insider selling, closing at $82.47 after trading as low as $79.49. Volume also jumped to 35.1 million shares, above the daily average.
• Two executives sold stock under pre-arranged Rule 10b5-1 plans: Steven M. Quirk sold 10,837 shares, and Daniel Martin Gallagher Jr. sold 10,000 shares. Both sales were disclosed in SEC filings.
• Despite the pullback, Wall Street remains cautiously bullish, with 19 analysts rating HOOD a Buy and MarketBeat showing a consensus target price of $106.54. Recent research notes included several price-target cuts, but Goldman Sachs and others still maintained positive ratings.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s share price fell 6.6% during trading on Friday after an insider sold shares in the company. The company traded as low as $79.49 and last traded at $82.47. 35,141,274 shares were traded during trading, an increase of 18% from the average session volume of 29,827,721 shares. The stock had previously closed at $88.33.

Specifically, insider Steven M. Quirk sold 10,837 shares of Robinhood Markets stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $85.91, for a total transaction of $931,006.67. Following the sale, the insider owned 81,989 shares of the company's stock, valued at approximately $7,043,674.99. This trade represents a 11.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of Robinhood Markets stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $83.68, for a total value of $836,800.00. Following the sale, the insider directly owned 481,396 shares in the company, valued at $40,283,217.28. The trade was a 2.04% 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.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on HOOD. Morgan Stanley decreased their price objective on Robinhood Markets from $147.00 to $95.00 and set an "equal weight" rating on the stock in a report on Friday, April 10th. Jefferies Financial Group decreased their price target on Robinhood Markets from $88.00 to $84.00 and set a "buy" rating on the stock in a research note on Monday, April 6th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $110.00 price target on shares of Robinhood Markets in a research note on Wednesday, April 29th. Needham & Company LLC decreased their price target on Robinhood Markets from $95.00 to $85.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Finally, Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $130.00 price target on shares of Robinhood Markets in a research note on Tuesday, April 14th. Nineteen research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Robinhood Markets has an average rating of "Moderate Buy" and an average target price of $106.54.

Key Stories Impacting Robinhood Markets

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

• Positive Sentiment: Director Meyer Malka bought 181,000 shares for about $15.1 million, a notable insider purchase that signals confidence in Robinhood’s outlook and helped support sentiment around the stock.
• Positive Sentiment: Robinhood is getting a fresh growth narrative from its plan to open SpaceX IPO access to everyday investors, which could attract new users, deposits, and more engagement on the platform. Article Title
• Positive Sentiment: FINRA’s elimination of the pattern day trader rule removes a major barrier for small-account traders, which could broaden Robinhood’s addressable market and increase trading activity. Article Title
• Positive Sentiment: Goldman Sachs raised its price target on HOOD to $105 and kept a buy rating, reinforcing a constructive view on the stock despite recent volatility.
• Positive Sentiment: Robinhood continues expanding beyond basic brokerage with advisor-network, AI, and wealth-management initiatives, which investors may see as a path to higher-quality recurring revenue. Article Title

Robinhood Markets Price Performance

The stock has a market capitalization of $74.27 billion, a P/E ratio of 39.84, a PEG ratio of 2.48 and a beta of 2.35. The business's 50 day simple moving average is $77.90 and its 200-day simple moving average is $93.10.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its earnings results on Tuesday, April 28th. The company reported $0.38 EPS for the quarter, missing the consensus estimate 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 net margin of 41.12% and a return on equity of 21.39%. The business's revenue was up 15.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.37 EPS. Research analysts anticipate that Robinhood Markets, Inc. will post 1.85 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Robinhood Markets

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Caisse Des Depots ET Consignations acquired a new stake in Robinhood Markets during the 3rd quarter worth $3,984,000. Aberdeen Group plc raised its stake in Robinhood Markets by 565.1% during the 3rd quarter. Aberdeen Group plc now owns 185,538 shares of the company's stock worth $26,565,000 after buying an additional 157,643 shares during the period. NEOS Investment Management LLC acquired a new stake in Robinhood Markets during the 3rd quarter worth $11,994,000. Truist Financial Corp raised its stake in Robinhood Markets by 88.9% during the 4th quarter. Truist Financial Corp now owns 145,489 shares of the company's stock worth $16,455,000 after buying an additional 68,458 shares during the period. Finally, New York Life Investment Management LLC acquired a new stake in Robinhood Markets during the 3rd quarter worth $14,989,000. Institutional investors own 93.27% of the company's stock.

Robinhood Markets Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.