Robinhood Markets (NASDAQ:HOOD) Stock Falls 3.8% – Should You Sell?

Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock price traded down 3.8% on Thursday. The stock traded as low as $80.52 and last traded at $81.35. Approximately 12,893,820 shares were traded during trading, a decline of 51% from the average session volume of 26,217,775 shares. The stock had previously closed at $84.58.

Recent Robinhood Markets Headlines

Investors following HOOD have been watching these headlines:

• 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: Robinhood reportedly attracted about $15 billion in net deposits during October, a sign of continued customer asset inflows despite weaker crypto trading. Article: Robinhood reports about $15 billion in October net deposits as crypto volumes slide
• 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?

Analyst Ratings Changes

Several brokerages recently issued reports on HOOD. Raymond James Financial reiterated a “market perform” rating on shares of Robinhood Markets in a report on Monday, October 5th. Compass Point boosted their price objective on Robinhood Markets from $126.00 to $145.00 and gave the stock a “buy” rating in a research note on Friday, October 2nd. Piper Sandler reaffirmed an “overweight” rating and issued a $145.00 target price (up from $135.00) on shares of Robinhood Markets in a research report on Wednesday, September 2nd. Zacks Research downgraded Robinhood Markets from a “strong-buy” rating to a “hold” rating in a report on Monday, November 2nd. Finally, Loop Capital set a $135.00 target price on Robinhood Markets in a report on Tuesday, September 29th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $126.45.

Robinhood Markets Trading Down 3.8%

The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.26. The business’s 50-day simple moving average is $104.70 and its two-hundred day simple moving average is $91.95. The company has a market capitalization of $73.25 billion, a PE ratio of 37.49, a PEG ratio of 1.81 and a beta of 2.56.

Robinhood Markets (NASDAQ:HOOD) last announced its earnings results on Wednesday, October 28th. The company reported $0.60 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.04. Robinhood Markets had a return on equity of 21.49% and a net margin of 39.04%. The business had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.44 billion. During the same period in the previous year, the company earned $0.61 earnings per share. The company’s revenue for the quarter was up 11.5% compared to the same quarter last year. On average, analysts predict that Robinhood Markets, Inc. will post 2.10 earnings per share for the current year.

Insider Activity

In other Robinhood Markets news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 3rd. The stock was sold at an average price of $85.05, for a total value of $850,500.00. Following the transaction, the insider directly owned 489,943 shares of the company’s stock, valued at $41,669,652.15. This represents a 2.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Tenev sold 375,000 shares of the company’s stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $113.72, for a total value of $42,645,000.00. Following the completion of the transaction, the chief executive officer directly owned 375,000 shares in the company, valued at approximately $42,645,000. The trade was a 50.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,095,820 shares of company stock worth $128,775,816 over the last quarter. Corporate insiders own 13.48% of the company’s stock.

Institutional Trading of Robinhood Markets

Hedge funds have recently made changes to their positions in the stock. C M Bidwell & Associates Ltd. bought a new stake in shares of Robinhood Markets in the second quarter worth $27,000. James T. Borello RIA bought a new position in Robinhood Markets during the 3rd quarter valued at $29,000. Cassaday & Co Wealth Management LLC bought a new position in Robinhood Markets during the 1st quarter valued at $33,000. Glen Eagle Advisors LLC grew its holdings in Robinhood Markets by 100.7% during the 1st quarter. Glen Eagle Advisors LLC now owns 568 shares of the company’s stock worth $39,000 after acquiring an additional 285 shares in the last quarter. Finally, Continuum Advisory LLC acquired a new position in Robinhood Markets during the 2nd quarter worth $40,000. Institutional investors and hedge funds 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.