Robinhood Markets (NASDAQ:HOOD) Shares Down 5.9% – Should You Sell?

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price was down 5.9% during trading on Wednesday . The stock traded as low as $96.30 and last traded at $97.1840. Approximately 29,953,391 shares traded hands during trading, a decline of 2% from the average daily volume of 30,566,932 shares. The stock had previously closed at $103.25.

Key Stories Impacting Robinhood Markets

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, arguing the company has a long runway for asset growth, product expansion, and deeper customer engagement as younger investors accumulate more wealth. Article Title
• Positive Sentiment: Robinhood closed its $2.2 billion offering of 0.00% convertible senior notes due 2029, saying the deal boosts strategic flexibility and includes capped calls and share repurchases intended to limit dilution for shareholders. Article Title
• Positive Sentiment: Robinhood is also getting attention for product and subscriber-growth initiatives, including promotions aimed at boosting its Gold user base, which supports the case for expanding recurring revenue. Article Title
• Neutral Sentiment: Market chatter showed Robinhood traders piling into the REX FANG & Innovation Equity Premium Income ETF (FEPI), reflecting strong retail interest on the platform but not directly changing Robinhood’s fundamentals. Article Title
• Negative Sentiment: Earlier weakness came after reports that Meta Platforms is developing a competing prediction-markets app, which raised competitive concerns for one of Robinhood’s newer growth areas. Article Title

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Citizens Jmp reiterated a “market outperform” rating and issued a $155.00 price objective on shares of Robinhood Markets in a research report on Thursday, May 28th. KeyCorp restated an “overweight” rating and set a $100.00 price objective on shares of Robinhood Markets in a research report on Monday, June 1st. The Goldman Sachs Group raised their target price on shares of Robinhood Markets from $95.00 to $105.00 and gave the stock a “buy” rating in a research note on Thursday, June 4th. Mizuho lifted their target price on shares of Robinhood Markets from $110.00 to $115.00 and gave the company an “outperform” rating in a report on Friday, May 29th. Finally, Needham & Company LLC boosted their price target on shares of Robinhood Markets from $85.00 to $97.00 and gave the stock a “buy” rating in a research note on Thursday, June 11th. Nineteen 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, Robinhood Markets currently has a consensus rating of “Moderate Buy” and an average target price of $112.91.

Robinhood Markets Price Performance

The company has a 50-day simple moving average of $85.63 and a 200-day simple moving average of $90.35. The stock has a market cap of $89.00 billion, a PE ratio of 47.63, a PEG ratio of 1.79 and a beta of 2.35.

Robinhood Markets (NASDAQ:HOOD) last released 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). Robinhood Markets had a net margin of 41.12% and a return on equity of 21.39%. The business had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.14 billion. During the same period last year, the business posted $0.37 EPS. Robinhood Markets’s revenue was up 15.1% compared to the same quarter last year. On average, equities analysts expect that Robinhood Markets, Inc. will post 1.8 EPS for the current fiscal year.

Insider Transactions at Robinhood Markets

In related news, Director Baiju Bhatt sold 57,898 shares of the business’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $89.63, for a total transaction of $5,189,397.74. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Shiv Verma sold 3,984 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $98.84, for a total transaction of $393,778.56. Following the transaction, the chief financial officer owned 59,927 shares in the company, valued at $5,923,184.68. The trade was a 6.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have acquired 680,000 shares of company stock valued at $55,306,560 and have sold 633,484 shares valued at $47,542,923. 14.47% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Robinhood Markets

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