Robinhood Markets (NASDAQ:HOOD) Trading Down 8.9% - What's Next?

Key Points

• Robinhood Markets' stock price dropped 8.9%, trading as low as $138.94, down from a previous close of $152.46, with a lower trading volume compared to average.
• Multiple brokerages have raised their price targets for Robinhood, with Barclays setting it at $120.00 and Mizuho at $145.00, while the consensus price target stands at $118.94.
• The company reported a 45% increase in quarterly revenue year-over-year, with earnings per share beating expectations at $0.42.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s stock price fell 8.9% during trading on Friday . The stock traded as low as $138.94 and last traded at $138.96. 39,840,174 shares were traded during trading, a decline of 5% from the average session volume of 41,787,020 shares. The stock had previously closed at $152.46.

Analysts Set New Price Targets

Several brokerages have commented on HOOD. Barclays upped their price target on Robinhood Markets from $102.00 to $120.00 and gave the stock an "overweight" rating in a research note on Thursday, July 31st. Mizuho increased their target price on Robinhood Markets from $120.00 to $145.00 and gave the company an "outperform" rating in a research note on Wednesday, September 10th. The Goldman Sachs Group increased their target price on Robinhood Markets from $134.00 to $152.00 and gave the company a "buy" rating in a research note on Tuesday, September 30th. Morgan Stanley increased their target price on Robinhood Markets from $110.00 to $146.00 and gave the company an "equal weight" rating in a research note on Wednesday, October 1st. Finally, Bank of America increased their target price on Robinhood Markets from $139.00 to $157.00 and gave the company a "buy" rating in a research note on Thursday, October 2nd. Twelve analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $118.94.

Robinhood Markets Trading Down 8.9%

The business has a 50 day simple moving average of $117.92 and a two-hundred day simple moving average of $85.18. The stock has a market cap of $123.49 billion, a price-to-earnings ratio of 70.54, a price-to-earnings-growth ratio of 4.19 and a beta of 2.42.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its quarterly earnings data 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 firm had revenue of $989.00 million during the quarter, compared to analyst estimates of $893.93 million. During the same quarter last year, the firm earned $0.21 EPS. Robinhood Markets's quarterly revenue was up 45.0% on a year-over-year basis. Research 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, Director Meyer Malka sold 1,093,288 shares of the stock in a transaction that occurred on Thursday, August 28th. The stock was sold at an average price of $103.87, for a total transaction of $113,559,824.56. Following the transaction, the director owned 3,976,234 shares of the company's stock, valued at $413,011,425.58. This trade represents a 21.57% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Vladimir Tenev sold 750,000 shares of the stock in a transaction that occurred on Wednesday, October 1st. The stock was 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 90 days, insiders sold 5,681,122 shares of company stock worth $618,215,681. 14.47% of the stock is currently owned by corporate insiders.

Institutional Trading of Robinhood Markets

Several hedge funds have recently made changes to their positions in HOOD. Hantz Financial Services Inc. lifted its holdings in shares of Robinhood Markets by 120.3% in the 2nd quarter. Hantz Financial Services Inc. now owns 271 shares of the company's stock worth $25,000 after purchasing an additional 148 shares during the last quarter. Hemington Wealth Management lifted its holdings in shares of Robinhood Markets by 52.2% in the 1st quarter. Hemington Wealth Management now owns 636 shares of the company's stock worth $26,000 after purchasing an additional 218 shares during the last quarter. Smithfield Trust Co bought a new stake in shares of Robinhood Markets in the 2nd quarter worth approximately $29,000. Wayfinding Financial LLC bought a new stake in shares of Robinhood Markets in the 1st quarter worth approximately $30,000. Finally, Pandora Wealth Inc. bought a new stake in shares of Robinhood Markets in the 1st quarter worth approximately $33,000. Institutional investors 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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