Robinhood Markets (NASDAQ:HOOD) Shares Down 1.6% After Insider Selling

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price fell 1.6% during mid-day trading on Friday after an insider sold shares in the company. The stock traded as low as $94.79 and last traded at $95.07. 13,817,660 shares changed hands during trading, a decline of 48% from the average session volume of 26,600,553 shares. The stock had previously closed at $96.58.

Specifically, Director Baiju Bhatt sold 50,912 shares of the stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $101.40, for a total transaction of $5,162,476.80. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

Several analysts recently weighed in on HOOD shares. Evercore initiated coverage on Robinhood Markets in a report on Monday, October 12th. They issued an “outperform” rating and a $130.00 price objective for the company. KeyCorp increased their target price on Robinhood Markets from $130.00 to $140.00 and gave the stock an “overweight” rating in a report on Wednesday, September 30th. Loop Capital set a $135.00 target price on Robinhood Markets in a report on Tuesday, September 29th. Wall Street Zen upgraded Robinhood Markets from a “strong sell” rating to a “sell” rating in a research report on Sunday, July 12th. Finally, Compass Point boosted their price target on Robinhood Markets from $126.00 to $145.00 and gave the company a “buy” rating in a report on Friday, October 2nd. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $130.29.

Robinhood Markets News Summary

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

• Positive Sentiment: Rosenblatt Securities initiated coverage with a Buy rating and a $135 price target, adding to recent analyst optimism and suggesting substantial upside from current levels. Rosenblatt initiates coverage of Robinhood Markets
• Positive Sentiment: Robinhood received authorization to offer securities and crypto trading in Dubai, with a Middle East launch planned for 2027. The expansion could broaden its addressable market and diversify growth beyond the United States. Robinhood Gets Dubai License
• Positive Sentiment: Robinhood is expanding beyond its core brokerage through prediction markets, tokenized assets, lending, advisor technology and other products. Growing activity in bitcoin and gold prediction markets supports the case that the company can deepen customer relationships and increase revenue per user. Robinhood sees surge in bitcoin and gold prediction markets
• Positive Sentiment: Robinhood stock tokens are now usable as collateral on Morpho, potentially increasing the utility and adoption of its tokenization platform. Its Fusion platform also gained ICE Connect Wealth integration, strengthening its offering to registered investment advisors. Robinhood stock tokens go live on Morpho
• Neutral Sentiment: Analysts are expecting another solid quarter, but earnings estimates and key operating metrics will likely determine whether the stock can recover ahead of the October 27 report. Recent analyst price-target increases provide support, while the elevated valuation leaves less room for disappointment. Robinhood Markets quarterly earnings preview
• Negative Sentiment: Crypto revenue fell 38% year over year to $100 million in the second quarter, marking three consecutive quarters of decline. Although late-quarter trading activity improved, investors remain concerned that any recovery may not be large enough to materially improve results. Robinhood crypto revenue outlook

Robinhood Markets Trading Down 1.6%

The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.23. The business’s 50-day moving average is $109.41 and its two-hundred day moving average is $97.22. The firm has a market cap of $85.48 billion, a P/E ratio of 41.88, a P/E/G ratio of 2.03 and a beta of 2.35.

Robinhood Markets (NASDAQ:HOOD) last released its quarterly earnings data on Wednesday, July 29th. The company reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.44 by $0.18. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same quarter in the prior year, the business earned $0.42 earnings per share. Robinhood Markets’s quarterly revenue was up 32.5% on a year-over-year basis. As a group, analysts expect that Robinhood Markets, Inc. will post 2.19 earnings per share for the current fiscal year.

Institutional Trading of Robinhood Markets

A number of institutional investors and hedge funds have recently made changes to their positions in HOOD. Simplicity Wealth LLC lifted its holdings in shares of Robinhood Markets by 63.8% in the 3rd quarter. Simplicity Wealth LLC now owns 16,296 shares of the company’s stock worth $1,833,000 after purchasing an additional 6,346 shares during the last quarter. Ascent Wealth Partners LLC grew its stake in Robinhood Markets by 11.3% during the 3rd quarter. Ascent Wealth Partners LLC now owns 6,000 shares of the company’s stock worth $675,000 after buying an additional 610 shares during the last quarter. WASHINGTON TRUST Co acquired a new stake in Robinhood Markets in the third quarter worth $203,000. XXI Wealth LLC increased its position in Robinhood Markets by 80.9% in the third quarter. XXI Wealth LLC now owns 5,640 shares of the company’s stock worth $634,000 after buying an additional 2,523 shares during the period. Finally, BIP Wealth LLC acquired a new stake in Robinhood Markets in the third quarter worth $202,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

Robinhood Markets Company Profile

Robinhood Markets, Inc is a financial services company that operates a digital brokerage platform. Founded in 2013 by Vlad Tenev and Baiju Bhatt, the company became known for offering commission-free trading and a mobile-first investing experience designed to broaden access to financial markets.

Through its platform, Robinhood provides brokerage services for stocks, exchange-traded funds, options and other investments. Its offerings also include cryptocurrency trading, individual retirement accounts, margin investing, cash management services and Robinhood Gold, a subscription-based product that provides additional features and benefits.