Robinhood Markets (NASDAQ:HOOD) Shares Down 6.5% – Here’s Why

Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock price was down 6.5% during mid-day trading on Thursday . The company traded as low as $54.76 and last traded at $55.39. Approximately 13,242,623 shares traded hands during trading, a decline of 46% from the average daily volume of 24,568,754 shares. The stock had previously closed at $59.23.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the stock. Needham & Company LLC upped their target price on shares of Robinhood Markets from $52.00 to $70.00 and gave the company a “buy” rating in a research report on Thursday, February 13th. The Goldman Sachs Group upgraded shares of Robinhood Markets from a “neutral” rating to a “buy” rating and lifted their target price for the company from $40.00 to $46.00 in a report on Friday, December 6th. JMP Securities increased their price target on shares of Robinhood Markets from $60.00 to $77.00 and gave the stock a “market outperform” rating in a research report on Thursday, February 13th. Piper Sandler lifted their price objective on shares of Robinhood Markets from $54.00 to $75.00 and gave the company an “overweight” rating in a report on Thursday, February 13th. Finally, Keefe, Bruyette & Woods increased their target price on shares of Robinhood Markets from $38.00 to $60.00 and gave the stock a “market perform” rating in a report on Tuesday. Five investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $59.53.

Robinhood Markets Price Performance

The firm has a market capitalization of $49.03 billion, a price-to-earnings ratio of 35.13, a price-to-earnings-growth ratio of 1.13 and a beta of 2.13. The firm’s 50-day moving average price is $46.85 and its 200 day moving average price is $33.40.

Robinhood Markets (NASDAQ:HOOD) last released its quarterly earnings results on Wednesday, February 12th. The company reported $0.54 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.13. Robinhood Markets had a return on equity of 13.96% and a net margin of 47.81%. On average, analysts predict that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Insider Activity at Robinhood Markets

In other Robinhood Markets news, insider Daniel Martin Gallagher, Jr. sold 300,000 shares of the business’s stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $37.51, for a total value of $11,253,000.00. Following the completion of the transaction, the insider now directly owns 806,955 shares in the company, valued at approximately $30,268,882.05. The trade was a 27.10 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Vladimir Tenev sold 750,000 shares of the firm’s stock in a transaction on Thursday, January 2nd. The stock was sold at an average price of $39.16, for a total value of $29,370,000.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 4,470,607 shares of company stock valued at $197,745,930. 19.95% of the stock is owned by insiders.

Institutional Investors Weigh In On Robinhood Markets

A number of institutional investors have recently bought and sold shares of the stock. New Wave Wealth Advisors LLC acquired a new position in shares of Robinhood Markets in the 4th quarter valued at $26,000. CoreCap Advisors LLC boosted its holdings in Robinhood Markets by 191.6% in the fourth quarter. CoreCap Advisors LLC now owns 837 shares of the company’s stock valued at $31,000 after acquiring an additional 550 shares during the last quarter. Creative Financial Designs Inc. ADV grew its position in Robinhood Markets by 750.0% during the fourth quarter. Creative Financial Designs Inc. ADV now owns 850 shares of the company’s stock valued at $32,000 after acquiring an additional 750 shares during the period. Colonial Trust Co SC acquired a new stake in Robinhood Markets during the fourth quarter worth about $34,000. Finally, Silicon Valley Capital Partners purchased a new position in shares of Robinhood Markets in the 4th quarter worth about $37,000. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

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.