Robinhood Markets (NASDAQ:HOOD) Trading Down 1.5% – Should You Sell?

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price dropped 1.5% during trading on Tuesday . The company traded as low as $78.93 and last traded at $83.77. 28,695,895 shares changed hands during trading, a decline of 4% from the average daily volume of 29,744,023 shares. The stock had previously closed at $85.04.

Key Headlines Impacting Robinhood Markets

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

• Positive Sentiment: Robinhood announced approval for its securities arm to act as an IPO underwriter, a potentially meaningful new revenue stream that could deepen its move into investment banking and support its “super app” strategy. Robinhood CEO Says His Company Gets Green Light to Underwrite IPOs
• Positive Sentiment: Needham raised its price target on HOOD to $97 from $85 and kept a buy rating, reinforcing the view that analysts see more upside after the IPO underwriting news. Needham raises Robinhood price target
• Positive Sentiment: Insider buying continued to signal confidence, with director Meyer Malka purchasing 250,000 shares worth about $20.2 million. Meyer Malka Purchases Shares
• Positive Sentiment: Coverage also highlighted Robinhood’s growing prediction-markets business and improving operating momentum, which investors may be viewing as additional growth drivers. Cantor Raises Robinhood Target On Prediction-Markets Venture It Says Wall Street Hasn’t Priced In
• Neutral Sentiment: Several articles framed HOOD as a momentum/trending stock, but these did not add major new fundamentals beyond the broader bullish narrative. Robinhood (HOOD) Stock Trades Up, Here Is Why
• Negative Sentiment: One source noted ongoing bearish commentary on Robinhood’s crypto exposure, which could temper enthusiasm if trading activity cools. Bear of the Day: Robinhood Markets (HOOD)

Analyst Upgrades and Downgrades

HOOD has been the topic of a number of recent analyst reports. Truist Financial decreased their target price on Robinhood Markets from $120.00 to $100.00 and set a “buy” rating on the stock in a research report on Monday, April 13th. KeyCorp reissued an “overweight” rating and set a $100.00 target price on shares of Robinhood Markets in a research note on Monday, June 1st. Compass Point reissued a “buy” rating on shares of Robinhood Markets in a research note on Wednesday, February 11th. Sanford C. Bernstein reissued an “outperform” rating and set a $130.00 target price on shares of Robinhood Markets in a research note on Tuesday, April 14th. Finally, Zacks Research raised Robinhood Markets from a “strong sell” rating to a “hold” rating in a research note on Monday. Eighteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, Robinhood Markets currently has an average rating of “Moderate Buy” and an average target price of $110.73.

Robinhood Markets Stock Performance

The business has a fifty day simple moving average of $79.17 and a 200-day simple moving average of $92.28. The firm has a market cap of $83.05 billion, a price-to-earnings ratio of 44.56, a PEG ratio of 2.09 and a beta of 2.35.

Robinhood Markets (NASDAQ:HOOD) last issued its earnings results on Tuesday, April 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). Robinhood Markets had a return on equity of 21.39% and a net margin of 41.12%.The firm had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.14 billion. During the same period in the previous year, the company earned $0.37 EPS. Robinhood Markets’s revenue for the quarter was up 15.1% on a year-over-year basis. On average, equities analysts anticipate that Robinhood Markets, Inc. will post 1.83 earnings per share for the current year.

Insiders Place Their Bets

In other Robinhood Markets news, insider Steven M. Quirk sold 10,837 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $85.91, for a total value of $931,006.67. Following the completion of the transaction, the insider owned 81,989 shares of the company’s stock, valued at $7,043,674.99. This represents a 11.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Tenev sold 375,000 shares of the company’s stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $69.83, for a total value of $26,186,250.00. Following the completion of the transaction, the chief executive officer directly owned 375,000 shares of the company’s stock, valued at approximately $26,186,250. The trade was a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have acquired 680,000 shares of company stock worth $55,306,560 and have sold 571,602 shares worth $41,959,746. 14.47% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Robinhood Markets

A number of institutional investors have recently made changes to their positions in HOOD. Vanguard Group Inc. grew its position in shares of Robinhood Markets by 24.9% in the 3rd quarter. Vanguard Group Inc. now owns 94,437,054 shares of the company’s stock valued at $13,521,497,000 after buying an additional 18,824,923 shares during the last quarter. State Street Corp grew its position in shares of Robinhood Markets by 103.2% in the 3rd quarter. State Street Corp now owns 32,246,155 shares of the company’s stock valued at $4,617,004,000 after buying an additional 16,375,734 shares during the last quarter. Norges Bank bought a new stake in shares of Robinhood Markets in the 4th quarter valued at about $1,202,160,000. Amundi grew its position in shares of Robinhood Markets by 89.0% in the 1st quarter. Amundi now owns 6,385,232 shares of the company’s stock valued at $442,497,000 after buying an additional 3,007,103 shares during the last quarter. Finally, Corient Private Wealth LLC grew its position in shares of Robinhood Markets by 5,221.4% in the 4th quarter. Corient Private Wealth LLC now owns 2,559,848 shares of the company’s stock valued at $289,519,000 after buying an additional 2,511,743 shares during the last quarter. 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.