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

Robinhood Markets, Inc. (NASDAQ:HOOD) was down 3.8% during trading on Thursday . The company traded as low as $92.80 and last traded at $93.47. Approximately 22,830,526 shares changed hands during mid-day trading, a decline of 25% from the average daily volume of 30,505,648 shares. The stock had previously closed at $97.19.

Robinhood Markets News Summary

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

• Positive Sentiment: BTIG initiated coverage on Robinhood with a Buy rating and a $125 price target, saying the company has a long runway for asset growth, customer engagement, and product expansion. The new bullish call is likely helping sentiment. Article Title
• Positive Sentiment: Robinhood closed its $2.2 billion offering of 0.00% convertible senior notes due 2029, giving it more financial flexibility. Management also said capped calls and a share repurchase mean the deal should limit dilution unless the stock rises much further, which may reassure investors. Article Title
• Positive Sentiment: Robinhood is also promoting growth through customer perks, including World Cup ticket giveaways to boost its Gold subscriber base, suggesting continued efforts to deepen engagement and subscription revenue. Article Title
• Neutral Sentiment: Robinhood is attracting investor attention as a high-yield ETF idea and continues to appear in market roundups, but these items are more about trading interest than a direct business catalyst. Article Title
• Neutral Sentiment: A comparison piece on SCHW vs. HOOD frames Robinhood as a value debate rather than providing a new company-specific catalyst. Article Title
• Negative Sentiment: Robinhood previously fell after reports that Meta is developing a competing prediction-markets app, raising concerns about future competition in one of Robinhood’s newer growth areas. Article Title

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Morgan Stanley reduced their price objective on Robinhood Markets from $147.00 to $95.00 and set an “equal weight” rating for the company in a research note on Friday, April 10th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $130.00 target price on shares of Robinhood Markets in a report on Tuesday, April 14th. KeyCorp reiterated an “overweight” rating and set a $100.00 price target on shares of Robinhood Markets in a research report on Monday, June 1st. Cantor Fitzgerald restated an “overweight” rating and issued a $110.00 price objective on shares of Robinhood Markets in a research report on Tuesday, June 9th. Finally, Mizuho raised their price objective 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. Nineteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $113.68.

Robinhood Markets Stock Performance

The stock has a market cap of $88.87 billion, a price-to-earnings ratio of 47.68, a PEG ratio of 2.20 and a beta of 2.35. The business’s 50 day moving average is $85.85 and its 200-day moving average is $90.41.

Robinhood Markets (NASDAQ:HOOD) last posted its quarterly earnings data on Tuesday, April 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.01). Robinhood Markets had a net margin of 41.12% and a return on equity of 21.39%. The company had revenue of $1.07 billion for the quarter, compared to analysts’ expectations of $1.14 billion. During the same period in the previous year, the business earned $0.37 earnings per share. The business’s revenue for the quarter was up 15.1% on a year-over-year basis. Sell-side analysts anticipate that Robinhood Markets, Inc. will post 1.81 EPS for the current fiscal year.

Insider Buying and Selling

In other Robinhood Markets news, CFO Shiv Verma sold 3,984 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $98.84, for a total value of $393,778.56. Following the transaction, the chief financial officer 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 sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Baiju Bhatt sold 57,898 shares of the business’s stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $89.63, for a total transaction of $5,189,397.74. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders acquired 680,000 shares of company stock worth $55,306,560 and sold 633,484 shares worth $47,542,923. 14.47% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Robinhood Markets

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. grew its holdings in Robinhood Markets by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 95,771,497 shares of the company’s stock valued at $10,831,756,000 after buying an additional 1,334,443 shares in the last quarter. State Street Corp boosted its position in shares of Robinhood Markets by 2.7% during the 4th quarter. State Street Corp now owns 33,121,452 shares of the company’s stock valued at $3,746,036,000 after acquiring an additional 875,297 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Robinhood Markets by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 21,171,925 shares of the company’s stock valued at $2,386,944,000 after purchasing an additional 356,902 shares during the period. Morgan Stanley increased its position in Robinhood Markets by 23.9% during the fourth quarter. Morgan Stanley now owns 10,683,776 shares of the company’s stock worth $1,208,335,000 after purchasing an additional 2,061,832 shares during the last quarter. Finally, Norges Bank purchased a new position in Robinhood Markets during the fourth quarter worth about $1,202,160,000. Institutional investors and hedge funds own 93.27% of the company’s stock.

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.