Robinhood Markets (NASDAQ:HOOD) Stock Price Down 1.5% on Insider Selling

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price dropped 1.5% during mid-day trading on Thursday after an insider sold shares in the company. The stock traded as low as $119.09 and last traded at $120.82. Approximately 14,615,546 shares traded hands during trading, a decline of 47% from the average session volume of 27,551,529 shares. The stock had previously closed at $122.70.

Specifically, CEO Vladimir Tenev sold 259,166 shares of the company’s stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $125.58, for a total value of $32,546,066.28. Following the sale, the chief executive officer owned 259,166 shares of the company’s stock, valued at $32,546,066.28. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

HOOD has been the topic of a number of recent research reports. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $160.00 price objective on shares of Robinhood Markets in a report on Tuesday, September 8th. Zacks Research upgraded Robinhood Markets from a “hold” rating to a “strong-buy” rating in a research report on Thursday, September 3rd. Benchmark raised Robinhood Markets to a “strong-buy” rating in a research note on Wednesday, September 9th. Weiss Ratings reiterated a “hold (c)” rating on shares of Robinhood Markets in a research report on Monday. Finally, BTIG Research reiterated a “buy” rating and set a $125.00 price objective on shares of Robinhood Markets in a research note on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $130.70.

Robinhood Markets News Roundup

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

• Positive Sentiment: Expansion of prediction markets: Robinhood is moving beyond sports-related contracts, with crypto-linked prediction products gaining traction. CEO Vlad Tenev has said crypto could eventually dominate prediction markets, potentially creating a new source of transaction revenue despite increased regulatory scrutiny. Robinhood’s Prediction Markets Move Beyond Sports
• Positive Sentiment: Robinhood Chain progress: Robinhood Chain integrated with Zerion as reported decentralized-exchange volume reached $1.88 billion. The development could increase access to decentralized finance and strengthen Robinhood’s blockchain ecosystem. Robinhood Chain integrates with Zerion
• Neutral Sentiment: Analyst sentiment remains favorable: Robinhood has a consensus “Moderate Buy” rating and an average price target above its recent trading level. However, targets vary considerably, reflecting uncertainty around valuation and regulation.
• Negative Sentiment: CEO stock sale weighs on sentiment: Vladimir Tenev sold 259,166 shares worth approximately $32.5 million, cutting his direct ownership by half. The sale was conducted under a pre-arranged Rule 10b5-1 plan, reducing its value as a bearish signal, but its size has nevertheless intensified selling concerns. SEC insider transaction filing
• Negative Sentiment: Sector-wide selling and valuation risk: Webull’s sharp decline following insider-sale headlines has pressured other brokerage stocks, including Robinhood and Interactive Brokers. HOOD also trades well above its 50-day and 200-day moving averages and at a relatively high earnings multiple, increasing the risk of profit-taking.

Robinhood Markets Stock Down 1.5%

The company has a market cap of $108.63 billion, a P/E ratio of 53.22, a PEG ratio of 2.48 and a beta of 2.34. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.22 and a quick ratio of 1.22. The business’s 50 day moving average price is $104.01 and its 200-day moving average price is $91.95.

Robinhood Markets (NASDAQ:HOOD) last released its quarterly earnings results on Wednesday, July 29th. The company reported $0.62 earnings per share for the quarter, beating analysts’ consensus estimates of $0.44 by $0.18. Robinhood Markets had a return on equity of 22.43% and a net margin of 42.01%.The firm had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.29 billion. During the same period last year, the firm posted $0.42 EPS. The business’s revenue was up 32.5% on a year-over-year basis. On average, analysts anticipate that Robinhood Markets, Inc. will post 2.15 earnings per share for the current fiscal year.

Institutional Trading of Robinhood Markets

Several large investors have recently made changes to their positions in HOOD. MV Capital Management Inc. acquired a new position in Robinhood Markets during the 4th quarter worth about $27,000. C M Bidwell & Associates Ltd. bought a new position in shares of Robinhood Markets in the second quarter worth about $27,000. SHP Wealth Management acquired a new position in shares of Robinhood Markets during the fourth quarter worth approximately $32,000. Glen Eagle Advisors LLC lifted its position in shares of Robinhood Markets by 812.9% during the fourth quarter. Glen Eagle Advisors LLC now owns 283 shares of the company’s stock worth $32,000 after purchasing an additional 252 shares in the last quarter. Finally, Copos Capital S.a r.l. bought a new stake in shares of Robinhood Markets during the fourth quarter valued at approximately $33,000. Institutional investors own 93.27% of the company’s stock.

About Robinhood Markets

Robinhood Markets, Inc is a financial services company that operates a digital investing and trading platform. Through its mobile app and website, the company provides access to U.S. stocks, exchange-traded funds, options, cryptocurrencies and other investment products. Robinhood also offers individual retirement accounts, margin investing and cash-management services, subject to applicable eligibility requirements and regulations.

The company generates revenue from sources that include interest earned on customer cash and margin balances, transaction-based revenue related to options and cryptocurrency trading, subscription fees for Robinhood Gold and other service-related activities.