Robinhood Markets (NASDAQ:HOOD) Trading Down 9.6% – Here’s Why

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price fell 9.6% on Monday . The company traded as low as $88.67 and last traded at $89.91. 59,346,183 shares traded hands during mid-day trading, an increase of 156% from the average session volume of 23,168,609 shares. The stock had previously closed at $99.48.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on HOOD shares. Piper Sandler restated an “overweight” rating on shares of Robinhood Markets in a report on Monday. Bank of America dropped their target price on shares of Robinhood Markets from $166.00 to $154.00 and set a “buy” rating for the company in a research report on Wednesday, December 10th. Compass Point reaffirmed a “buy” rating on shares of Robinhood Markets in a research report on Monday, October 27th. Truist Financial began coverage on shares of Robinhood Markets in a research report on Wednesday, December 17th. They issued a “buy” rating and a $155.00 price objective for the company. Finally, The Goldman Sachs Group reissued a “buy” rating on shares of Robinhood Markets in a research note on Monday, January 5th. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Robinhood Markets currently has a consensus rating of “Moderate Buy” and a consensus target price of $136.62.

Robinhood Markets Price Performance

The firm has a market capitalization of $80.85 billion, a price-to-earnings ratio of 37.31, a PEG ratio of 1.55 and a beta of 2.44. The business’s 50-day moving average price is $118.03 and its 200 day moving average price is $119.99.

Robinhood Markets (NASDAQ:HOOD) last released its quarterly earnings results on Wednesday, November 5th. The company reported $0.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.20. The firm had revenue of $1.27 billion for the quarter, compared to the consensus estimate of $1.15 billion. Robinhood Markets had a net margin of 52.19% and a return on equity of 21.74%. The firm’s quarterly revenue was up 100.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.17 EPS. As a group, sell-side analysts expect that Robinhood Markets, Inc. will post 1.35 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Vladimir Tenev sold 375,000 shares of the stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $121.63, for a total transaction of $45,611,250.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Steven M. Quirk sold 49,942 shares of the firm’s stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $131.15, for a total transaction of $6,549,893.30. Following the sale, the insider directly owned 54,496 shares of the company’s stock, valued at $7,147,150.40. The trade was a 47.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 2,853,425 shares of company stock worth $354,452,058. 19.95% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in HOOD. Vanguard Group Inc. raised its stake in shares of Robinhood Markets by 24.9% in the 3rd quarter. Vanguard Group Inc. now owns 94,437,054 shares of the company’s stock valued at $13,521,497,000 after purchasing an additional 18,824,923 shares in the last quarter. State Street Corp increased its holdings in Robinhood Markets by 103.2% in the third quarter. State Street Corp now owns 32,246,155 shares of the company’s stock valued at $4,617,004,000 after buying an additional 16,375,734 shares during the last quarter. WCM Investment Management LLC boosted its holdings in Robinhood Markets by 3,615.7% in the second quarter. WCM Investment Management LLC now owns 11,555,160 shares of the company’s stock worth $1,081,910,000 after purchasing an additional 11,244,182 shares during the period. Norges Bank acquired a new position in Robinhood Markets in the second quarter worth $973,122,000. Finally, Paradigm Operations LP bought a new stake in Robinhood Markets during the second quarter valued at $308,979,000. 93.27% of the stock is currently owned by 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.