Robinhood Markets (NASDAQ:HOOD) Stock Price Down 10.3% – Here’s Why

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) were down 10.3% during mid-day trading on Tuesday . The stock traded as low as $44.02 and last traded at $44.79. Approximately 26,528,060 shares traded hands during mid-day trading, an increase of 2% from the average daily volume of 25,932,127 shares. The stock had previously closed at $49.93.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the company. KeyCorp increased their target price on Robinhood Markets from $57.00 to $75.00 and gave the company an “overweight” rating in a report on Thursday, February 13th. Raymond James assumed coverage on shares of Robinhood Markets in a research report on Wednesday, February 5th. They set a “market perform” rating on the stock. Deutsche Bank Aktiengesellschaft raised their target price on shares of Robinhood Markets from $36.00 to $42.00 and gave the stock a “buy” rating in a research note on Thursday, December 5th. JMP Securities upped their price target on Robinhood Markets from $60.00 to $77.00 and gave the company a “market outperform” rating in a research report on Thursday, February 13th. Finally, The Goldman Sachs Group upgraded Robinhood Markets from a “neutral” rating to a “buy” rating and lifted their price objective for the stock from $40.00 to $46.00 in a research report on Friday, December 6th. Five equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. Based on data from MarketBeat.com, Robinhood Markets has an average rating of “Moderate Buy” and an average target price of $59.53.

Robinhood Markets Stock Performance

The business’s 50 day moving average price is $47.55 and its 200-day moving average price is $34.26. The firm has a market capitalization of $40.74 billion, a PE ratio of 29.40, a P/E/G ratio of 1.05 and a beta of 2.13.

Robinhood Markets (NASDAQ:HOOD) last announced its earnings results on Wednesday, February 12th. The company reported $0.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.41 by $0.13. Robinhood Markets had a return on equity of 13.53% and a net margin of 47.81%. As a group, analysts anticipate that Robinhood Markets, Inc. will post 1.35 earnings per share for the current year.

Insider Activity

In related news, CTO Jeffrey Tsvi Pinner sold 5,876 shares of the business’s stock in a transaction on Friday, December 20th. The shares were sold at an average price of $37.92, for a total value of $222,817.92. Following the completion of the sale, the chief technology officer now directly owns 11,752 shares of the company’s stock, valued at $445,635.84. The trade was a 33.33 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Baiju Bhatt sold 186,514 shares of the business’s stock in a transaction that occurred on Wednesday, December 11th. The shares were sold at an average price of $38.13, for a total value of $7,111,778.82. Following the completion of the sale, the director now owns 2,521 shares of the company’s stock, valued at approximately $96,125.73. This represents a 98.67 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 4,520,607 shares of company stock worth $200,784,430. Corporate insiders own 19.95% of the company’s stock.

Institutional Trading of Robinhood Markets

Hedge funds and other institutional investors have recently made changes to their positions in the stock. New Wave Wealth Advisors LLC acquired a new stake in Robinhood Markets during the fourth quarter worth approximately $26,000. HM Payson & Co. raised its stake in shares of Robinhood Markets by 53.5% in the 3rd quarter. HM Payson & Co. now owns 1,176 shares of the company’s stock valued at $28,000 after acquiring an additional 410 shares during the period. True Wealth Design LLC acquired a new position in shares of Robinhood Markets during the third quarter worth about $30,000. CoreCap Advisors LLC lifted its position in Robinhood Markets by 191.6% during the 4th quarter. CoreCap Advisors LLC now owns 837 shares of the company’s stock worth $31,000 after acquiring an additional 550 shares in the last quarter. Finally, Creative Financial Designs Inc. ADV grew its holdings in Robinhood Markets by 750.0% during the 4th quarter. Creative Financial Designs Inc. ADV now owns 850 shares of the company’s stock valued at $32,000 after purchasing an additional 750 shares in the last quarter. Institutional investors and hedge funds 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.