Robinhood Markets (NASDAQ:HOOD) Stock Price Down 3.8% – Here’s What Happened

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) fell 3.8% on Monday . The company traded as low as $85.56 and last traded at $90.73. 42,180,013 shares changed hands during mid-day trading, an increase of 41% from the average session volume of 29,849,711 shares. The stock had previously closed at $94.30.

Key Robinhood Markets News

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

• Positive Sentiment: Robinhood completed its acquisition of WonderFi, giving it immediate entry into the Canadian crypto market and expanding its international reach through Bitbuy and Coinsquare. Robinhood Completes Acquisition of WonderFi
• Positive Sentiment: Director Meyer Malka bought 249,000 shares, a notable insider purchase that signals confidence in Robinhood’s outlook. SEC filing
• Positive Sentiment: KeyCorp reaffirmed an Overweight rating and a $100 price target, reinforcing the view that Wall Street still sees upside. Benzinga report on KeyCorp rating
• Neutral Sentiment: Robinhood’s new AI-powered trading, banking, and credit card tools are drawing interest, but some coverage suggests these launches may not be enough on their own to move the stock. Robinhood Markets (HOOD) Is Up 28.1% After Launching Agentic AI Trading And Credit Card Tools
• Neutral Sentiment: The Supreme Court is asking for the Solicitor General’s view on Robinhood’s appeal in an IPO-related lawsuit, keeping legal uncertainty in the background. Supreme Court Seeks Solicitor General’s View of Robinhood’s Appeal of Alleged IPO Omissions
• Negative Sentiment: Binance’s rollout of U.S. stock and ETF trading adds a new well-funded competitor in Robinhood’s core brokerage-adjacent territory, increasing competitive pressure. Crypto exchange Binance rolls out trading in US stocks, ETFs
• Negative Sentiment: Robinhood’s latest earnings showed a slight EPS and revenue miss, and its crypto revenue has been under pressure, which may temper enthusiasm around the growth story. Zacks WonderFi Buyout and Crypto Growth Story

Wall Street Analysts Forecast Growth

Several research analysts have commented on HOOD shares. Wolfe Research upgraded shares of Robinhood Markets from a “peer perform” rating to an “outperform” rating and set a $125.00 price target for the company in a report on Monday, February 9th. Citizens Jmp reiterated a “market outperform” rating and set a $155.00 price target on shares of Robinhood Markets in a report on Thursday, May 28th. KeyCorp reiterated an “overweight” rating and set a $100.00 price target on shares of Robinhood Markets in a report on Monday. Sanford C. Bernstein restated an “outperform” rating and set a $130.00 price objective on shares of Robinhood Markets in a research report on Tuesday, April 14th. Finally, Truist Financial reduced their price objective on shares of Robinhood Markets from $120.00 to $100.00 and set a “buy” rating for the company in a research report on Monday, April 13th. Nineteen research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $105.96.

Robinhood Markets Price Performance

The company’s 50 day moving average is $76.96 and its 200 day moving average is $93.93. The stock has a market cap of $79.39 billion, a price-to-earnings ratio of 42.59, a PEG ratio of 2.79 and a beta of 2.35.

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

Insider Transactions at Robinhood Markets

In other Robinhood Markets news, Director Meyer Malka bought 249,000 shares of the company’s stock in a transaction on Thursday, May 28th. The stock was purchased at an average cost of $80.39 per share, for a total transaction of $20,017,110.00. Following the acquisition, the director owned 3,493,427 shares of the company’s stock, valued at $280,836,596.53. The trade was a 7.67% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Shiv Verma sold 5,436 shares of the firm’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $77.36, for a total transaction of $420,528.96. Following the transaction, the chief financial officer owned 47,311 shares of the company’s stock, valued at $3,659,978.96. This trade represents a 10.31% decrease in their ownership of the stock. 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 550,765 shares of company stock worth $40,191,940 in the last 90 days. Insiders own 19.95% of the company’s stock.

Hedge Funds Weigh In On Robinhood Markets

Hedge funds have recently added to or reduced their stakes in the business. Vision Financial Markets LLC increased its holdings in Robinhood Markets by 100.0% during the 3rd quarter. Vision Financial Markets LLC now owns 200 shares of the company’s stock valued at $29,000 after acquiring an additional 100 shares in the last quarter. Guerra Advisors Inc purchased a new position in Robinhood Markets during the 3rd quarter valued at about $30,000. CYBER HORNET ETFs LLC increased its holdings in 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 in the last quarter. MV Capital Management Inc. purchased a new position in Robinhood Markets during the 4th quarter valued at about $27,000. Finally, Swiss RE Ltd. purchased a new position in Robinhood Markets during the 4th quarter valued at about $27,000. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

About Robinhood Markets

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.