Robinhood Markets (NASDAQ:HOOD) Stock Falls 2.4% – Time to Sell?

Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock price traded down 2.4% during mid-day trading on Tuesday. The company traded as low as $79.96 and last traded at $81.33. Approximately 12,714,423 shares were traded during mid-day trading, a decline of 52% from the average daily volume of 26,322,725 shares. The stock had previously closed at $83.32.

Trending Headlines about Robinhood Markets

These are some of the HOOD headlines that stood out recently:

• Positive Sentiment: Prediction-market activity was a standout: customers traded about 5.9 billion event contracts in October, up 136% year over year and 5% from September. Event contracts generated $173 million in third-quarter revenue, more than six times the year-earlier amount. Article: Robinhood’s Prediction Market Bet Is Paying Off. Is the Stock a Buy?
• Positive Sentiment: Margin balances climbed 39% to $23 billion in October, potentially supporting recurring interest income. Article: Robinhood’s Margin Balances Reach $23B: Tailwind for Interest Income?
• Negative Sentiment: Cryptocurrency trading volumes fell sharply in October. That weakness may pressure transaction-based revenue and is a concern because event-contract growth may not fully compensate for lost crypto activity. Article: HOOD’s October Event Contract Trading Up: Can It Offset Crypto Woes?

Analysts Set New Price Targets

Several brokerages recently weighed in on HOOD. Citizens Jmp restated a “market outperform” rating and set a $165.00 target price on shares of Robinhood Markets in a research note on Wednesday, October 28th. Loop Capital set a $135.00 target price on Robinhood Markets in a report on Tuesday, September 29th. Needham & Company LLC dropped their price objective on shares of Robinhood Markets from $126.00 to $116.00 and set a “buy” rating for the company in a report on Wednesday, October 28th. Scotiabank reduced their price target on shares of Robinhood Markets from $136.00 to $124.00 and set a “sector outperform” rating on the stock in a research report on Wednesday, October 28th. Finally, BTIG Research reissued a “buy” rating and issued a $135.00 target price on shares of Robinhood Markets in a research note on Wednesday, October 28th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $126.45.

Robinhood Markets Stock Down 3.8%

The firm has a 50 day simple moving average of $104.70 and a two-hundred day simple moving average of $91.95. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.24 and a quick ratio of 1.24. The stock has a market cap of $73.25 billion, a price-to-earnings ratio of 37.49, a price-to-earnings-growth ratio of 1.81 and a beta of 2.56.

Robinhood Markets (NASDAQ:HOOD) last announced its quarterly earnings results on Wednesday, October 28th. The company reported $0.60 EPS for the quarter, beating analysts’ consensus estimates of $0.56 by $0.04. The company had revenue of $1.42 billion during the quarter, compared to analysts’ expectations of $1.44 billion. Robinhood Markets had a return on equity of 21.49% and a net margin of 39.04%. Robinhood Markets’s revenue was up 11.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.61 EPS. As a group, sell-side analysts expect that Robinhood Markets, Inc. will post 2.10 EPS for the current year.

Insider Activity

In other Robinhood Markets news, insider Steven Quirk sold 24,416 shares of the company’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $120.33, for a total value of $2,937,977.28. Following the completion of the sale, the insider owned 77,839 shares of the company’s stock, valued at approximately $9,366,366.87. This represents a 23.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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 50,912 shares of the business’s stock in a transaction on Wednesday, October 21st. The shares were sold at an average price of $101.40, for a total transaction of $5,162,476.80. 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 90 days, insiders have sold 1,095,820 shares of company stock valued at $128,775,816. 13.48% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Robinhood Markets

Several institutional investors have recently modified their holdings of HOOD. Meeder Advisory Services Inc. raised its holdings in Robinhood Markets by 22.9% during the 3rd quarter. Meeder Advisory Services Inc. now owns 18,805 shares of the company’s stock worth $2,116,000 after buying an additional 3,509 shares during the period. First Trust Advisors LP increased its position in shares of Robinhood Markets by 44.0% during the third quarter. First Trust Advisors LP now owns 377,310 shares of the company’s stock worth $42,447,000 after acquiring an additional 115,323 shares in the last quarter. State Street Corp increased its position in shares of Robinhood Markets by 0.6% during the third quarter. State Street Corp now owns 34,865,341 shares of the company’s stock worth $3,922,351,000 after acquiring an additional 194,193 shares in the last quarter. Ilmarinen Mutual Pension Insurance Co raised its holdings in shares of Robinhood Markets by 195.9% during the third quarter. Ilmarinen Mutual Pension Insurance Co now owns 88,764 shares of the company’s stock worth $9,986,000 after acquiring an additional 58,764 shares during the period. Finally, E Fund Management Hong Kong Co. Ltd. raised its holdings in shares of Robinhood Markets by 736.7% during the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 9,998 shares of the company’s stock worth $1,125,000 after acquiring an additional 8,803 shares during the period. Institutional investors own 93.27% of the company’s stock.

About Robinhood Markets

Robinhood Markets, Inc. operates a digital financial services platform that gives customers access to investing and financial products through its website and mobile app. Its offerings include trading in stocks, exchange-traded funds, options and cryptocurrencies, as well as retirement accounts and cash-management services. Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood built its business around making financial services more accessible through a mobile-first platform. The company is headquartered in Menlo Park, California, and serves customers in the United States and select international markets.