Robinhood Markets (NASDAQ:HOOD) Trading Down 7.1% - Time to Sell?

Key Points

• Robinhood shares fell 7.1% in Monday trading, dropping as low as $85.56 before last trading near $87.64. Volume was also well below normal, at about 10.1 million shares versus an average of 29.5 million.
• Analysts remain mixed but broadly positive on the stock, with a consensus rating of “Moderate Buy” and an average price target of $105.96. Recent moves included KeyCorp reiterating an overweight rating while JPMorgan cut its target to $92 and kept a neutral stance.
• Robinhood’s latest earnings showed mixed results: EPS of $0.38 missed estimates by a penny and revenue of $1.07 billion came in below forecasts, though revenue still rose 15.1% year over year. The report also noted recent insider sales, including transactions by the CTO and CFO.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shares were down 7.1% during mid-day trading on Monday . The stock traded as low as $85.56 and last traded at $87.6420. Approximately 10,059,864 shares were traded during trading, a decline of 66% from the average daily volume of 29,526,576 shares. The stock had previously closed at $94.30.

Wall Street Analyst Weigh In

Several analysts recently issued reports on HOOD shares. KeyCorp reiterated an "overweight" rating and set a $100.00 target price on shares of Robinhood Markets in a report on Monday. JPMorgan Chase & Co. lowered their price target on Robinhood Markets from $113.00 to $92.00 and set a "neutral" rating on the stock in a research report on Thursday, April 23rd. Wolfe Research raised Robinhood Markets from a "peer perform" rating to an "outperform" rating and set a $125.00 price target on the stock in a research report on Monday, February 9th. Weiss Ratings reissued a "hold (c)" rating on shares of Robinhood Markets in a research report on Friday, March 27th. Finally, The Goldman Sachs Group reissued a "buy" rating on shares of Robinhood Markets in a research report on Wednesday. Nineteen investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $105.96.

Robinhood Markets Price Performance

The firm has a 50-day moving average price of $76.63 and a 200 day moving average price of $94.22. The company has a market cap of $82.13 billion, a price-to-earnings ratio of 44.06, a P/E/G ratio of 2.94 and a beta of 2.35.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted 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). Robinhood Markets had a net margin of 41.12% and a return on equity of 21.39%. The firm had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.14 billion. During the same period in the previous year, the company posted $0.37 EPS. Robinhood Markets's revenue for the quarter was up 15.1% compared to the same quarter last year. On average, equities analysts anticipate that Robinhood Markets, Inc. will post 1.83 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CTO Jeffrey Tsvi Pinner sold 5,835 shares of the business's stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $83.92, for a total value of $489,673.20. Following the completion of the sale, the chief technology officer directly owned 12,171 shares in the company, valued at approximately $1,021,390.32. The trade was a 32.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Shiv Verma sold 5,436 shares of the business's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $77.36, for a total value of $420,528.96. Following the completion of the sale, the chief financial officer owned 47,311 shares of the company's stock, valued at approximately $3,659,978.96. This trade represents a 10.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 560,765 shares of company stock valued at $40,946,840 in the last quarter. Company insiders own 19.95% of the company's stock.

Institutional Investors Weigh In On Robinhood Markets

Several institutional investors have recently made changes to their positions in HOOD. Vanguard Group Inc. boosted its stake in shares of Robinhood Markets by 24.9% in the third quarter. Vanguard Group Inc. now owns 94,437,054 shares of the company's stock valued at $13,521,497,000 after buying an additional 18,824,923 shares during the period. State Street Corp boosted its stake in shares of Robinhood Markets by 103.2% in the third quarter. State Street Corp now owns 32,246,155 shares of the company's stock valued at $4,617,004,000 after buying an additional 16,375,734 shares during the period. Norges Bank bought a new stake in shares of Robinhood Markets in the fourth quarter valued at approximately $1,202,160,000. Amundi boosted its stake in shares of Robinhood Markets by 89.0% in the first quarter. Amundi now owns 6,385,232 shares of the company's stock valued at $442,497,000 after buying an additional 3,007,103 shares during the period. Finally, Corient Private Wealth LLC lifted its stake in Robinhood Markets by 5,221.4% during the fourth quarter. Corient Private Wealth LLC now owns 2,559,848 shares of the company's stock worth $289,519,000 after purchasing an additional 2,511,743 shares during the last quarter. 93.27% of the stock is currently owned by institutional investors.

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.

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