Robinhood Markets (NASDAQ:HOOD) Shares Down 2.5% – Should You Sell?

Robinhood Markets, Inc. (NASDAQ:HOOD) traded down 2.5% during trading on Monday. The stock traded as low as $116.06 and last traded at $116.46. Approximately 12,539,140 shares traded hands during mid-day trading, a decline of 54% from the average session volume of 27,389,486 shares. The stock had previously closed at $119.40.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on HOOD. Argus increased their price objective on shares of Robinhood Markets from $90.00 to $110.00 and gave the stock a “buy” rating in a research note on Wednesday, June 17th. Citizens Jmp upped their target price on Robinhood Markets from $155.00 to $165.00 and gave the company a “market outperform” rating in a report on Friday, September 11th. Mizuho increased their price target on Robinhood Markets from $130.00 to $140.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 9th. BTIG Research reissued a “buy” rating and issued a $125.00 price target on shares of Robinhood Markets in a report on Thursday, July 30th. Finally, Scotiabank began coverage on Robinhood Markets in a research report on Wednesday, September 2nd. They set a “sector outperform” rating and a $136.00 price objective for the company. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $130.70.

Robinhood Markets Stock Down 2.5%

The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.22 and a current ratio of 1.22. The firm has a 50 day simple moving average of $104.69 and a two-hundred day simple moving average of $92.54. The stock has a market cap of $104.71 billion, a P/E ratio of 51.30, a P/E/G ratio of 2.38 and a beta of 2.34.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.62 EPS 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 company had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same period last year, the company earned $0.42 earnings per share. The company’s quarterly revenue was up 32.5% compared to the same quarter last year. Equities research analysts predict that Robinhood Markets, Inc. will post 2.15 earnings per share for the current year.

Insider Activity at Robinhood Markets

In related news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the business’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $122.43, for a total transaction of $1,224,300.00. Following the sale, the insider owned 509,943 shares of the company’s stock, valued at $62,432,321.49. The trade was a 1.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Tenev sold 240,834 shares of the business’s stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $125.33, for a total value of $30,183,725.22. Following the sale, the chief executive officer directly owned 240,834 shares in the company, valued at approximately $30,183,725.22. The trade was a 50.00% 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. Insiders sold 1,121,121 shares of company stock worth $132,674,478 in the last three months. Insiders own 13.48% of the company’s stock.

Hedge Funds Weigh In On Robinhood Markets

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. State Street Corp raised its stake in shares of Robinhood Markets by 2.7% in the 4th quarter. State Street Corp now owns 33,121,452 shares of the company’s stock worth $3,746,036,000 after buying an additional 875,297 shares in the last quarter. Norges Bank acquired a new stake in shares of Robinhood Markets in the fourth quarter valued at $1,202,160,000. Sumitomo Mitsui Trust Group Inc. boosted its stake in Robinhood Markets by 10.2% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 6,812,999 shares of the company’s stock valued at $472,141,000 after buying an additional 632,403 shares in the last quarter. Amundi boosted its stake in Robinhood Markets by 89.0% during the first 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 in the last quarter. Finally, Amova Asset Management Americas Inc. grew its holdings in Robinhood Markets by 15.0% during the first quarter. Amova Asset Management Americas Inc. now owns 5,240,796 shares of the company’s stock worth $362,925,000 after acquiring an additional 685,041 shares during the period. 93.27% of the stock is owned by institutional investors.

About Robinhood Markets

Robinhood Markets, Inc (NASDAQ: HOOD) operates a financial services platform designed to provide investing and trading products through mobile applications and a website. Its offerings include commission-free trading in stocks and exchange-traded funds, options trading, cryptocurrency services, margin investing, and retirement accounts. The company also provides cash management features and other tools intended to help customers manage and invest their money.

Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood gained prominence by expanding access to investing through a low-cost, easy-to-use digital platform.