Robinhood Markets (NASDAQ:HOOD) Trading Down 4% – Here’s What Happened

Robinhood Markets, Inc. (NASDAQ:HOOD) traded down 4% on Tuesday . The company traded as low as $112.53 and last traded at $112.90. 21,684,292 shares traded hands during mid-day trading, a decline of 29% from the average daily volume of 30,381,330 shares. The stock had previously closed at $117.55.

Key Robinhood Markets News

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

• Positive Sentiment: China Renaissance initiated coverage on Robinhood with a Buy rating, adding to the bullish analyst backdrop. Robinhood (HOOD) Stock Surges 4.6% on Multiple Bullish Catalysts This Week
• Positive Sentiment: Investor enthusiasm is being fueled by Robinhood’s expansion into AI-powered trading, tokenization, DeFi lending, and international markets, which could open new revenue streams. HOOD Bets on DeFi, Tokenization & AI Trading in Global Expansion Push
• Positive Sentiment: Robinhood’s business momentum appears to be improving ahead of its next earnings report, with analysts saying growth in banking and prediction-market initiatives could support estimate revisions if results beat expectations. Why Robinhood’s Business Momentum May Be Outrunning Earnings Estimates

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Barclays decreased their price objective on Robinhood Markets from $89.00 to $82.00 and set an “overweight” rating on the stock in a report on Wednesday, April 29th. Sanford C. Bernstein restated an “outperform” rating and set a $130.00 target price on shares of Robinhood Markets in a research report on Tuesday, April 14th. Piper Sandler reaffirmed an “overweight” rating on shares of Robinhood Markets in a research note on Thursday, July 2nd. China Renaissance began coverage on Robinhood Markets in a research note on Tuesday. They set a “buy” rating for the company. Finally, Truist Financial cut their price objective on Robinhood Markets from $120.00 to $100.00 and set a “buy” rating for the company in a report on Monday, April 13th. Twenty-one investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $115.00.

Robinhood Markets Trading Down 4.0%

The firm has a fifty day moving average price of $88.38 and a 200 day moving average price of $89.42. The firm has a market capitalization of $101.67 billion, a price-to-earnings ratio of 54.54, a P/E/G ratio of 2.53 and a beta of 2.33.

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

Insider Buying and Selling

In related news, Director Meyer Malka acquired 250,000 shares of the company’s stock in a transaction that occurred on Friday, June 5th. The stock was acquired at an average price of $80.74 per share, for a total transaction of $20,185,000.00. Following the completion of the acquisition, the director owned 3,924,427 shares of the company’s stock, valued at $316,858,235.98. This trade represents a 6.80% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Baiju Bhatt sold 67,422 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $75.38, for a total value of $5,082,270.36. 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 90 days, insiders have acquired 680,000 shares of company stock valued at $55,306,560 and have sold 242,649 shares valued at $20,250,598. Insiders own 19.95% of the company’s stock.

Institutional Investors Weigh In On Robinhood Markets

Several large investors have recently bought and sold shares of HOOD. Empowered Funds LLC boosted its stake in Robinhood Markets by 46.7% in the 1st quarter. Empowered Funds LLC now owns 49,870 shares of the company’s stock worth $2,076,000 after purchasing an additional 15,885 shares during the period. Arrowstreet Capital Limited Partnership acquired a new stake in shares of Robinhood Markets in the 2nd quarter valued at about $5,105,000. Federated Hermes Inc. lifted its holdings in shares of Robinhood Markets by 106.2% in the second quarter. Federated Hermes Inc. now owns 63,957 shares of the company’s stock valued at $5,988,000 after purchasing an additional 32,933 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in shares of Robinhood Markets by 19.1% in the second quarter. NewEdge Advisors LLC now owns 89,676 shares of the company’s stock valued at $8,396,000 after purchasing an additional 14,356 shares in the last quarter. Finally, Nebula Research & Development LLC acquired a new position in shares of Robinhood Markets during the second quarter worth about $1,316,000. Institutional investors own 93.27% of the company’s stock.

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.