Robinhood Markets (NASDAQ:HOOD) Stock Price Down 6% – Here’s What Happened

Robinhood Markets, Inc. (NASDAQ:HOOD) was down 6% on Wednesday . The company traded as low as $82.41 and last traded at $82.85. Approximately 23,602,972 shares changed hands during mid-day trading, a decline of 21% from the average daily volume of 29,769,547 shares. The stock had previously closed at $88.16.

Key Headlines Impacting Robinhood Markets

Here are the key news stories impacting Robinhood Markets this week:

• Positive Sentiment: Director Meyer Malka bought 181,000 shares for about $15.1 million, a notable insider purchase that signals confidence in Robinhood’s outlook and helped support sentiment around the stock.
• Positive Sentiment: Robinhood is getting a fresh growth narrative from its plan to open SpaceX IPO access to everyday investors, which could attract new users, deposits, and more engagement on the platform. Article Title
• Positive Sentiment: FINRA’s elimination of the pattern day trader rule removes a major barrier for small-account traders, which could broaden Robinhood’s addressable market and increase trading activity. Article Title
• Positive Sentiment: Goldman Sachs raised its price target on HOOD to $105 and kept a buy rating, reinforcing a constructive view on the stock despite recent volatility.
• Positive Sentiment: Robinhood continues expanding beyond basic brokerage with advisor-network, AI, and wealth-management initiatives, which investors may see as a path to higher-quality recurring revenue. Article Title

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on HOOD shares. KeyCorp restated an “overweight” rating and issued a $100.00 price objective on shares of Robinhood Markets in a report on Monday. Citigroup restated a “market outperform” rating on shares of Robinhood Markets in a report on Thursday, May 28th. Zacks Research lowered shares of Robinhood Markets from a “hold” rating to a “strong sell” rating in a report on Wednesday, April 8th. Loop Capital set a $94.00 price objective on shares of Robinhood Markets in a report on Wednesday, May 27th. Finally, Wall Street Zen lowered shares of Robinhood Markets from a “hold” rating to a “sell” rating in a research note on Saturday, February 14th. Nineteen investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $106.54.

Robinhood Markets Trading Down 6.6%

The firm has a market capitalization of $74.27 billion, a PE ratio of 39.84, a price-to-earnings-growth ratio of 2.48 and a beta of 2.35. The business’s 50 day simple moving average is $77.90 and its two-hundred day simple moving average is $93.10.

Robinhood Markets (NASDAQ:HOOD) last announced its earnings results on Tuesday, April 28th. The company reported $0.38 earnings per share for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). The company had revenue of $1.07 billion for the quarter, compared to analysts’ expectations of $1.14 billion. Robinhood Markets had a net margin of 41.12% and a return on equity of 21.39%. Robinhood Markets’s quarterly revenue was up 15.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.37 earnings per share. As a group, equities research analysts anticipate that Robinhood Markets, Inc. will post 1.85 earnings per share for the current year.

Insider Buying and Selling at Robinhood Markets

In other news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the business’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $83.68, for a total transaction of $836,800.00. Following the completion of the sale, the insider owned 481,396 shares of the company’s stock, valued at $40,283,217.28. The trade was a 2.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at 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 on Friday, May 15th. The shares were sold at an average price of $77.36, for a total transaction of $420,528.96. Following the sale, the chief financial officer directly owned 47,311 shares of the company’s stock, valued at approximately $3,659,978.96. The trade was a 10.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 571,602 shares of company stock worth $41,959,746. 14.47% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Robinhood Markets

Hedge funds have recently modified their holdings of the business. Sound Income Strategies LLC grew its position in shares of Robinhood Markets by 152.6% during the 4th quarter. Sound Income Strategies LLC now owns 240 shares of the company’s stock valued at $26,000 after acquiring an additional 145 shares during the period. CYBER HORNET ETFs LLC grew its position in shares of Robinhood Markets by 527.8% during the 4th quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company’s stock valued at $26,000 after acquiring an additional 190 shares during the period. Elyxium Wealth LLC bought a new stake in shares of Robinhood Markets during the 4th quarter valued at $27,000. MV Capital Management Inc. bought a new stake in shares of Robinhood Markets during the 4th quarter valued at $27,000. Finally, Swiss RE Ltd. bought a new stake in shares of Robinhood Markets during the 4th quarter valued at $27,000. Institutional investors own 93.27% of the company’s stock.

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.