Robinhood Markets (NASDAQ:HOOD) Trading Down 8.2% – Here’s What Happened

Robinhood Markets, Inc. (NASDAQ:HOOD) shares dropped 8.2% during mid-day trading on Thursday . The company traded as low as $105.48 and last traded at $106.02. Approximately 28,185,816 shares changed hands during trading, a decline of 6% from the average session volume of 29,919,104 shares. The stock had previously closed at $115.54.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: Goldman Sachs raised its price target on Robinhood Markets (HOOD) to $137 from $121 and kept a buy rating, signaling strong analyst confidence in further upside. Benzinga article
• Positive Sentiment: Coverage around Robinhood’s growing prediction markets activity suggests a potential earnings tailwind if trading volumes keep climbing. Coinage article
• Positive Sentiment: Robinhood’s new blockchain initiative and broader crypto expansion reinforce the company’s positioning in digital assets and tokenized finance, which could support long-term growth. Motley Fool article
• Positive Sentiment: Recent articles comparing Robinhood favorably versus StoneX and highlighting it as a top crypto/blockchain stock add to the bullish narrative around its expanding product ecosystem. Zacks article
• Neutral Sentiment: Robinhood shares have also recently traded above prior levels after outperforming the broader market, but that move appears to be part of a broader trend rather than a single new catalyst. Yahoo Finance article
• Negative Sentiment: One cautionary headline noted that Robinhood Chain’s memecoin-trading success could create risks for its tokenized stock ambitions, which may add volatility to the long-term crypto thesis. BeInCrypto article

Wall Street Analysts Forecast Growth

HOOD has been the subject of several analyst reports. Cantor Fitzgerald reiterated an “overweight” rating and issued a $110.00 target price on shares of Robinhood Markets in a report on Tuesday, June 9th. Zacks Research upgraded shares of Robinhood Markets from a “strong sell” rating to a “hold” rating in a report on Monday, June 8th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Robinhood Markets in a research report on Wednesday, June 24th. Barclays increased their price objective on shares of Robinhood Markets from $82.00 to $122.00 and gave the company an “overweight” rating in a research note on Thursday, July 9th. Finally, BTIG Research reissued a “buy” rating and set a $125.00 target price on shares of Robinhood Markets in a research report on Thursday, July 2nd. Twenty-one analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Robinhood Markets has an average rating of “Moderate Buy” and a consensus price target of $118.70.

Robinhood Markets Trading Down 8.2%

The stock has a market capitalization of $95.47 billion, a PE ratio of 51.22, a price-to-earnings-growth ratio of 2.38 and a beta of 2.33. The firm has a 50-day moving average price of $93.21 and a 200-day moving average price of $89.10.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings results on Tuesday, April 28th. The company reported $0.38 earnings per share for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). The company had revenue of $1.07 billion during 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%.Robinhood Markets’s quarterly revenue was up 15.1% compared to the same quarter last year. During the same period last year, the firm posted $0.37 earnings per share. Sell-side analysts expect that Robinhood Markets, Inc. will post 1.88 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Oluwadara Johnson Treseder sold 3,750 shares of the firm’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $117.50, for a total transaction of $440,625.00. Following the completion of the sale, the director owned 72,442 shares in the company, valued at $8,511,935. This trade represents a 4.92% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of Robinhood Markets stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $116.14, for a total transaction of $1,161,400.00. Following the completion of the sale, the insider directly owned 471,396 shares in the company, valued at $54,747,931.44. This trade represents a 2.08% decrease in their position. 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 have purchased 680,000 shares of company stock valued at $55,306,560 and have sold 587,875 shares valued at $62,602,915. Insiders own 13.48% of the company’s stock.

Institutional Trading of Robinhood Markets

A number of large investors have recently bought and sold shares of the company. Evolution Wealth Advisors LLC grew its position in Robinhood Markets by 5.2% during the fourth quarter. Evolution Wealth Advisors LLC now owns 1,916 shares of the company’s stock worth $217,000 after buying an additional 95 shares in the last quarter. CogentBlue Wealth Advisors LLC raised its holdings in shares of Robinhood Markets by 4.1% in the 4th quarter. CogentBlue Wealth Advisors LLC now owns 2,489 shares of the company’s stock valued at $282,000 after acquiring an additional 98 shares in the last quarter. SOA Wealth Advisors LLC. raised its holdings in shares of Robinhood Markets by 11.5% in the 4th quarter. SOA Wealth Advisors LLC. now owns 968 shares of the company’s stock valued at $109,000 after acquiring an additional 100 shares in the last quarter. Barnes Dennig Private Wealth Management LLC boosted its position in shares of Robinhood Markets by 10.2% during the 4th quarter. Barnes Dennig Private Wealth Management LLC now owns 1,210 shares of the company’s stock valued at $137,000 after acquiring an additional 112 shares during the last quarter. Finally, Bogart Wealth LLC grew its holdings in shares of Robinhood Markets by 8.5% during the fourth quarter. Bogart Wealth LLC now owns 1,463 shares of the company’s stock worth $165,000 after purchasing an additional 114 shares in the last quarter. 93.27% of the stock is owned by hedge funds and other institutional investors.

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.