Robinhood Markets (NASDAQ:HOOD) Shares Down 5.7% – Here’s Why

Robinhood Markets, Inc. (NASDAQ:HOOD) traded down 5.7% during trading on Friday . The stock traded as low as $96.59 and last traded at $99.96. Approximately 27,431,334 shares traded hands during mid-day trading, a decline of 8% from the average daily volume of 29,902,555 shares. The stock had previously closed at $106.02.

Robinhood Markets News Summary

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

• Positive Sentiment: Goldman Sachs raised its price target on Robinhood to $137 from $121 and reiterated a Buy rating ahead of earnings, signaling confidence in the company’s growth potential and implying meaningful upside from current levels. Goldman Sachs raises price target on Robinhood ahead of earnings
• Neutral Sentiment: Robinhood is drawing heavy investor attention online, with Zacks noting that the stock has become a trending name; this reflects interest rather than a direct fundamental catalyst. Robinhood Markets, Inc. (HOOD) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Robinhood recently benefited from a broad market upswing and has continued to trade well above its 50-day and 200-day moving averages, but that momentum has been offset by a more volatile tape in recent sessions. Robinhood Markets, Inc. (HOOD) Beats Stock Market Upswing: What Investors Need to Know
• Negative Sentiment: Brokerage stocks, including Robinhood, were hit by a Nasdaq-100 selloff and a decline in crypto prices, both of which can reduce trading activity and weigh on revenue expectations. Robinhood Drops 4%, Webull Tumbles 6% as NASDAQ 100 Selloff and Crypto Dip Hit Retail-Brokerage Stocks
• Negative Sentiment: Reports that Robinhood is selling $400 million of credit-card asset-backed bonds added to investor caution, likely feeding concerns about financing activity and broader market stress. Why Is Robinhood Stock Falling on Friday?

Analyst Ratings Changes

HOOD has been the subject of several recent research reports. Argus increased their price objective on shares of Robinhood Markets from $90.00 to $110.00 and gave the stock a “buy” rating in a research report on Wednesday, June 17th. JPMorgan Chase & Co. reduced their target price on shares of Robinhood Markets from $113.00 to $92.00 and set a “neutral” rating on the stock in a report on Thursday, April 23rd. BTIG Research reaffirmed a “buy” rating and set a $125.00 price target on shares of Robinhood Markets in a research report on Thursday, July 2nd. The Goldman Sachs Group increased their price target on Robinhood Markets from $121.00 to $137.00 and gave the company a “buy” rating in a report on Thursday. Finally, Piper Sandler reissued an “overweight” rating on shares of Robinhood Markets in a research report on Thursday, July 2nd. Twenty-one equities research 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, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $118.70.

Robinhood Markets Price Performance

The business’s 50-day moving average price is $94.26 and its 200 day moving average price is $89.09. The firm has a market capitalization of $90.01 billion, a price-to-earnings ratio of 48.29, a PEG ratio of 2.11 and a beta of 2.33.

Robinhood Markets (NASDAQ:HOOD) last released 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). Robinhood Markets had a net margin of 41.12% and a return on equity of 21.39%. The firm had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.14 billion. During the same period in the previous year, the business posted $0.37 earnings per share. Robinhood Markets’s revenue for the quarter was up 15.1% on a year-over-year basis. As a group, sell-side analysts expect that Robinhood Markets, Inc. will post 1.86 earnings per share for the current year.

Insider Activity at Robinhood Markets

In related news, Director Oluwadara Johnson Treseder sold 3,750 shares of the business’s stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $117.50, for a total value of $440,625.00. Following the transaction, the director owned 72,442 shares in the company, valued at approximately $8,511,935. The trade was a 4.92% decrease in their ownership of the stock. 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, insider Steven M. Quirk sold 19,377 shares of the stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $119.96, for a total value of $2,324,464.92. Following the completion of the transaction, the insider directly owned 62,612 shares of the company’s stock, valued at $7,510,935.52. This represents a 23.63% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders acquired 680,000 shares of company stock valued at $55,306,560 and sold 587,875 shares valued at $62,602,915. Insiders own 13.48% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in HOOD. CYBER HORNET ETFs LLC raised its stake in shares of Robinhood Markets by 527.8% in the 4th quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company’s stock valued at $26,000 after purchasing an additional 190 shares in the last quarter. MV Capital Management Inc. acquired a new position in Robinhood Markets in the fourth quarter worth about $27,000. Swiss RE Ltd. acquired a new position in Robinhood Markets in the fourth quarter worth about $27,000. Elyxium Wealth LLC bought a new stake in Robinhood Markets in the fourth quarter valued at about $27,000. Finally, Sound Income Strategies LLC increased its holdings in Robinhood Markets by 152.6% in the fourth quarter. Sound Income Strategies LLC now owns 240 shares of the company’s stock valued at $26,000 after buying an additional 145 shares during the last quarter. 93.27% of the stock is currently owned by 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.