Robinhood Markets (NASDAQ:HOOD) Shares Down 2.3% – What’s Next?

Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock price dropped 2.3% during trading on Tuesday . The company traded as low as $101.03 and last traded at $103.25. 40,313,660 shares traded hands during mid-day trading, an increase of 32% from the average session volume of 30,544,010 shares. The stock had previously closed at $105.71.

Robinhood Markets News Roundup

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

• Positive Sentiment: Robinhood said it will use about $290 million of the proceeds to repurchase shares, which could help support the stock and offset some dilution concerns. Article Title
• Positive Sentiment: The company also plans to use capped call transactions to reduce potential share dilution if the notes are converted, which is a shareholder-friendly feature. Article Title
• Neutral Sentiment: Analyst and market commentary continues to highlight strong trading activity in Robinhood and ongoing interest in the stock, which may help keep investor attention high. Article Title
• Neutral Sentiment: Commentary from Jim Cramer suggesting Robinhood’s layoffs may be tied to AI is more of a narrative item than a direct catalyst, so its stock impact is less clear. Article Title
• Negative Sentiment: The convertible debt raise is the main bearish catalyst today because it signals Robinhood is tapping capital markets and raises concerns that existing shareholders could be diluted later. Article Title

Analyst Ratings Changes

Several research firms have recently commented on HOOD. KeyCorp reissued an “overweight” rating and issued a $100.00 price target on shares of Robinhood Markets in a report on Monday, June 1st. Weiss Ratings reiterated a “hold (c)” rating on shares of Robinhood Markets in a research report on Friday, March 27th. Truist Financial reduced their target price on Robinhood Markets from $120.00 to $100.00 and set a “buy” rating for the company in a report on Monday, April 13th. Mizuho upped their price target on shares of Robinhood Markets from $110.00 to $115.00 and gave the stock an “outperform” rating in a research note on Friday, May 29th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Robinhood Markets in a research note on Thursday, May 28th. Eighteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $112.36.

Robinhood Markets Trading Down 2.3%

The firm has a 50 day moving average of $84.14 and a two-hundred day moving average of $91.12. The stock has a market capitalization of $92.98 billion, a PE ratio of 49.88, a P/E/G ratio of 2.54 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. Equities research analysts forecast that Robinhood Markets, Inc. will post 1.81 EPS for the current year.

Insider Transactions at Robinhood Markets

In other Robinhood Markets news, CFO Shiv Verma sold 3,984 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $98.84, for a total transaction of $393,778.56. Following the completion of the transaction, the chief financial officer directly owned 59,927 shares in the company, valued at approximately $5,923,184.68. This trade represents a 6.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Meyer Malka bought 250,000 shares of the business’s stock in a transaction on Friday, June 5th. The shares were acquired at an average price of $80.74 per share, with a total value of $20,185,000.00. Following the transaction, the director owned 3,924,427 shares of the company’s stock, valued at $316,858,235.98. The trade was a 6.80% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders acquired 680,000 shares of company stock worth $55,306,560 and sold 633,484 shares worth $47,542,923. Insiders own 19.95% of the company’s stock.

Institutional Investors Weigh In On Robinhood Markets

A number of institutional investors and hedge funds have recently bought and sold shares of HOOD. CYBER HORNET ETFs LLC raised its holdings in shares of Robinhood Markets by 527.8% in the fourth quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company’s stock worth $26,000 after acquiring an additional 190 shares during the last quarter. MV Capital Management Inc. purchased a new stake in Robinhood Markets during the 4th quarter worth about $27,000. Swiss RE Ltd. purchased a new stake in Robinhood Markets during the 4th quarter worth about $27,000. Elyxium Wealth LLC acquired a new position in Robinhood Markets in the 4th quarter valued at about $27,000. Finally, Sound Income Strategies LLC lifted its holdings in Robinhood Markets by 152.6% in the 4th quarter. Sound Income Strategies LLC now owns 240 shares of the company’s stock valued at $26,000 after purchasing an additional 145 shares in the last quarter. Hedge funds and other 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.