Robinhood Markets (NASDAQ:HOOD) Shares Down 1.4% After Insider Selling

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) fell 1.4% on Tuesday following insider selling activity. The stock traded as low as $94.57 and last traded at $96.71. 31,221,055 shares were traded during trading, an increase of 4% from the average session volume of 30,011,453 shares. The stock had previously closed at $98.12.

Specifically, CFO Shiv Verma sold 3,984 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $98.84, for a total value of $393,778.56. Following the transaction, the chief financial officer directly owned 59,927 shares of the company’s stock, valued at $5,923,184.68. This represents a 6.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Baiju Bhatt sold 57,898 shares of the company’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $89.63, for a total value of $5,189,397.74. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on HOOD. Citigroup reissued a “market outperform” rating on shares of Robinhood Markets in a research report on Thursday, May 28th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $130.00 price target on shares of Robinhood Markets in a research report on Tuesday, April 14th. The Goldman Sachs Group increased their price target on Robinhood Markets from $95.00 to $105.00 and gave the stock a “buy” rating in a research report on Thursday, June 4th. Loop Capital set a $94.00 price target on Robinhood Markets in a research report on Wednesday, May 27th. Finally, New Street Research set a $122.00 price target on Robinhood Markets in a research report on Thursday, March 5th. Eighteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $110.73.

Key Robinhood Markets News

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

• Positive Sentiment: Robinhood’s 10% workforce reduction signals tighter cost control and a push to improve operating efficiency, which can boost margins if trading activity stays strong. Robinhood Markets to Cut 10% of Workforce in Restructuring
• Positive Sentiment: Management said the business is “thriving” and emphasized record trading volumes, which suggests the company is cutting costs from a position of strength rather than weakness. Robinhood Cuts 10% of Staff Amid Record Trading Volumes
• Positive Sentiment: Broader financial stocks were also moving higher, providing a supportive sector backdrop for Robinhood shares. Sector Update: Financial Stocks Rise Tuesday Afternoon
• Neutral Sentiment: Some commentary around Robinhood’s expanding prediction markets, IPO activity, and other growth initiatives remains constructive, but these are longer-term catalysts rather than immediate drivers. Robinhood Stock In Focus: Record SpaceX Traffic, New IPO Business, World Cup Bets
• Negative Sentiment: Insider selling by CFO Shiv Verma and director Baiju Bhatt may slightly pressure sentiment, although both sales were made under pre-arranged trading plans. SEC filing for Shiv Verma sale SEC filing for Baiju Bhatt sale

Robinhood Markets Trading Down 1.4%

The company has a market capitalization of $87.09 billion, a price-to-earnings ratio of 46.72, a PEG ratio of 2.33 and a beta of 2.35. The company has a fifty day moving average of $80.67 and a 200-day moving average of $91.89.

Robinhood Markets (NASDAQ:HOOD) last posted its quarterly earnings data on Tuesday, April 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.01). Robinhood Markets had a return on equity of 21.39% and a net margin of 41.12%.The firm had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.14 billion. During the same quarter in the previous year, the firm posted $0.37 earnings per share. The company’s quarterly revenue was up 15.1% on a year-over-year basis. As a group, equities research analysts expect that Robinhood Markets, Inc. will post 1.83 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Militia Capital Management LLC purchased a new position in Robinhood Markets in the 1st quarter worth approximately $1,641,000. Rathbones Group PLC lifted its stake in Robinhood Markets by 3.3% in the 1st quarter. Rathbones Group PLC now owns 5,129 shares of the company’s stock worth $355,000 after purchasing an additional 165 shares in the last quarter. Glenmede Trust Co. NA lifted its stake in Robinhood Markets by 22.5% in the 1st quarter. Glenmede Trust Co. NA now owns 10,426 shares of the company’s stock worth $723,000 after purchasing an additional 1,914 shares in the last quarter. Summitry LLC purchased a new position in Robinhood Markets in the 1st quarter worth approximately $432,000. Finally, Groupama Asset Managment purchased a new position in Robinhood Markets in the 1st quarter worth approximately $260,000. 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.