Robinhood Markets (NASDAQ:HOOD) Trading Down 6.2% – Here’s What Happened

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price dropped 6.2% during trading on Tuesday . The stock traded as low as $40.34 and last traded at $40.53. Approximately 10,221,125 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 16,865,992 shares. The stock had previously closed at $43.20.

Wall Street Analysts Forecast Growth

HOOD has been the topic of several recent analyst reports. Morgan Stanley raised shares of Robinhood Markets from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $24.00 to $55.00 in a research note on Monday, November 25th. The Goldman Sachs Group upgraded Robinhood Markets from a “neutral” rating to a “buy” rating and lifted their price target for the company from $40.00 to $46.00 in a research report on Friday, December 6th. Citigroup increased their price target on shares of Robinhood Markets from $19.00 to $23.00 and gave the stock a “neutral” rating in a report on Friday, September 27th. Needham & Company LLC reaffirmed a “buy” rating and issued a $52.00 price objective (up previously from $40.00) on shares of Robinhood Markets in a report on Monday, December 9th. Finally, Piper Sandler raised their target price on Robinhood Markets from $36.00 to $42.00 and gave the company an “overweight” rating in a research report on Monday, December 2nd. One analyst has rated the stock with a sell rating, two have given a hold rating and twelve have given a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $38.13.

Robinhood Markets Stock Up 3.3 %

The firm has a market capitalization of $33.86 billion, a PE ratio of 64.92, a price-to-earnings-growth ratio of 0.76 and a beta of 2.09. The business has a 50-day moving average price of $32.64 and a 200-day moving average price of $25.42.

Robinhood Markets (NASDAQ:HOOD) last issued its earnings results on Wednesday, October 30th. The company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.01). Robinhood Markets had a net margin of 21.80% and a return on equity of 7.52%. The company had revenue of $637.00 million during the quarter, compared to analysts’ expectations of $660.53 million. During the same quarter in the previous year, the company earned ($0.09) earnings per share. The firm’s quarterly revenue was up 36.4% compared to the same quarter last year. On average, equities research analysts anticipate that Robinhood Markets, Inc. will post 0.8 earnings per share for the current year.

Insider Activity at Robinhood Markets

In related news, insider Daniel Martin Gallagher, Jr. sold 12,500 shares of the business’s stock in a transaction dated Thursday, October 3rd. The shares were sold at an average price of $22.37, for a total value of $279,625.00. Following the sale, the insider now directly owns 1,057,500 shares in the company, valued at approximately $23,656,275. The trade was a 1.17 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Vladimir Tenev sold 250,000 shares of the company’s stock in a transaction that occurred on Friday, October 4th. The stock was sold at an average price of $22.88, for a total transaction of $5,720,000.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 6,037,689 shares of company stock valued at $177,092,487. 19.95% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Raymond James & Associates increased its holdings in shares of Robinhood Markets by 28.6% in the 2nd quarter. Raymond James & Associates now owns 56,203 shares of the company’s stock valued at $1,276,000 after acquiring an additional 12,512 shares during the period. Nisa Investment Advisors LLC boosted its stake in shares of Robinhood Markets by 2,611.8% during the second quarter. Nisa Investment Advisors LLC now owns 39,050 shares of the company’s stock worth $887,000 after buying an additional 37,610 shares during the period. Fullcircle Wealth LLC purchased a new position in shares of Robinhood Markets during the second quarter worth about $218,000. Silvant Capital Management LLC acquired a new position in Robinhood Markets in the 2nd quarter valued at about $1,036,000. Finally, Yeomans Consulting Group Inc. purchased a new stake in Robinhood Markets during the 2nd quarter valued at approximately $344,000. Hedge funds and other 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.