Robinhood Markets (NASDAQ:HOOD) Trading Down 1.7% Following Insider Selling

Robinhood Markets, Inc. (NASDAQ:HOOD) was down 1.7% during trading on Thursday after an insider sold shares in the company. The stock traded as low as $111.95 and last traded at $113.33. Approximately 16,160,190 shares changed hands during mid-day trading, a decline of 42% from the average session volume of 27,762,307 shares. The stock had previously closed at $115.28.

Specifically, Director Oluwadara Treseder sold 1,875 shares of the firm’s stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $125.00, for a total value of $234,375.00. Following the completion of the sale, the director directly owned 70,567 shares in the company, valued at $8,820,875. This trade represents a 2.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel Gallagher, Jr. sold 10,000 shares of Robinhood Markets stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $122.43, for a total transaction of $1,224,300.00. Following the completion of the transaction, the insider directly owned 509,943 shares in the company, valued at $62,432,321.49. This represents a 1.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other news, insider Steven Quirk sold 24,416 shares of the company’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $120.33, for a total transaction of $2,937,977.28. Following the transaction, the insider directly 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 SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the company. Deutsche Bank Aktiengesellschaft boosted their target price on Robinhood Markets from $105.00 to $113.00 and gave the stock a “buy” rating in a research note on Tuesday, June 30th. Cantor Fitzgerald raised their price target on Robinhood Markets from $115.00 to $150.00 and gave the stock an “overweight” rating in a report on Tuesday. Loop Capital set a $142.00 price target on Robinhood Markets in a research note on Tuesday. Weiss Ratings restated a “hold (c)” rating on shares of Robinhood Markets in a report on Wednesday, June 24th. Finally, KeyCorp increased their price objective on shares of Robinhood Markets from $100.00 to $125.00 and gave the company an “overweight” rating in a research report on Wednesday, July 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $129.83.

Robinhood Markets News Roundup

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

• Positive Sentiment: Strong August activity and event-contract growth: Robinhood reported 28.6 million customers and broadly positive August operating metrics. Separately, event-contract activity reportedly increased 15-fold year over year, supporting the company’s diversification beyond traditional brokerage revenue. Robinhood August operating data Robinhood event contracts growth
• Positive Sentiment: New revenue opportunities: Citizens JMP raised its price target to $165 from $155 and maintained a Market Outperform rating. Citizens also projected Robinhood Chain could generate $365 million in revenue by 2027. Robinhood’s underwriting role in the Oura IPO could provide investment-banking fee revenue and create opportunities to participate in larger IPOs. Citizens Robinhood Chain projection Robinhood investment banking ambitions
• Neutral Sentiment: Expansion through partnerships: Robinhood is expanding prediction-market access through arrangements involving Crypto.com and OG.com, although the ultimate financial contribution remains uncertain.
• Negative Sentiment: Regulatory and legal concerns: Robinhood plans to stop offering sports prediction markets in Michigan amid litigation. A broader legal update highlights rapidly changing rules across several states, creating uncertainty around the company’s prediction-market growth strategy. Robinhood Michigan prediction markets lawsuit Prediction markets legal update
• Negative Sentiment: Tokenization faces scrutiny: Objections from securities issuers and unresolved regulatory questions could raise compliance costs and slow Robinhood’s international rollout of tokenized stocks. Robinhood tokenized-stock scrutiny
• Negative Sentiment: Insider sale: Director Oluwadara Treseder sold 1,875 shares for approximately $234,375 under a pre-arranged Rule 10b5-1 plan. The sale was small relative to her remaining stake but may add modest caution.

Robinhood Markets Price Performance

The stock has a fifty day moving average of $103.62 and a 200 day moving average of $89.67. The stock has a market cap of $101.21 billion, a price-to-earnings ratio of 49.59, a P/E/G ratio of 2.31 and a beta of 2.34. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.22 and a quick ratio of 1.22.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.44 by $0.18. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. The company had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter in the prior year, the company earned $0.42 EPS. Robinhood Markets’s quarterly revenue was up 32.5% on a year-over-year basis. On average, analysts expect that Robinhood Markets, Inc. will post 2.11 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in HOOD. California State Teachers Retirement System raised its stake in shares of Robinhood Markets by 9,976.4% during the 2nd quarter. California State Teachers Retirement System now owns 113,132,988 shares of the company’s stock valued at $11,344,976,000 after buying an additional 112,010,233 shares during the last quarter. State Street Corp grew its holdings in Robinhood Markets by 2.7% during the fourth quarter. State Street Corp now owns 33,121,452 shares of the company’s stock worth $3,746,036,000 after acquiring an additional 875,297 shares during the period. Geode Capital Management LLC grew its holdings in Robinhood Markets by 1.7% during the fourth quarter. Geode Capital Management LLC now owns 21,171,925 shares of the company’s stock worth $2,386,944,000 after acquiring an additional 356,902 shares during the period. Morgan Stanley grew its holdings in Robinhood Markets by 23.9% during the fourth quarter. Morgan Stanley now owns 10,683,776 shares of the company’s stock worth $1,208,335,000 after acquiring an additional 2,061,832 shares during the period. Finally, Norges Bank purchased a new position in Robinhood Markets during the fourth quarter valued at approximately $1,202,160,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

About Robinhood Markets

Robinhood Markets, Inc is a financial services company that operates a digital investing and trading platform. Through its mobile app and website, the company provides access to U.S. stocks, exchange-traded funds, options, cryptocurrencies and other investment products. Robinhood also offers individual retirement accounts, margin investing and cash-management services, subject to applicable eligibility requirements and regulations.

The company generates revenue from sources that include interest earned on customer cash and margin balances, transaction-based revenue related to options and cryptocurrency trading, subscription fees for Robinhood Gold and other service-related activities.