Robinhood Markets (NASDAQ:HOOD) Trading Down 9.1% on Analyst Downgrade

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) fell 9.1% on Thursday after Cantor Fitzgerald lowered their price target on the stock from $155.00 to $152.00. Cantor Fitzgerald currently has an overweight rating on the stock. Robinhood Markets traded as low as $122.53 and last traded at $123.38. 43,778,021 shares traded hands during mid-day trading, an increase of 12% from the average session volume of 39,254,996 shares. The stock had previously closed at $135.66.

A number of other brokerages also recently issued reports on HOOD. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Robinhood Markets in a report on Monday. Morgan Stanley increased their price objective on shares of Robinhood Markets from $110.00 to $146.00 and gave the company an “equal weight” rating in a research report on Wednesday, October 1st. Needham & Company LLC reaffirmed a “buy” rating and issued a $145.00 target price on shares of Robinhood Markets in a research report on Friday, December 5th. Bank of America decreased 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 note on Wednesday. Finally, Compass Point restated a “buy” rating on shares of Robinhood Markets in a research note on Monday, October 27th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $136.16.

Insider Activity

In other news, Director Baiju Bhatt sold 418,338 shares of the firm’s stock in a transaction on Monday, November 17th. The shares were sold at an average price of $116.56, for a total transaction of $48,761,477.28. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CTO Jeffrey Tsvi Pinner sold 5,865 shares of the business’s stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $132.26, for a total value of $775,704.90. Following the completion of the transaction, the chief technology officer owned 26,725 shares in the company, valued at $3,534,648.50. The trade was a 18.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 3,686,763 shares of company stock worth $475,858,262 in the last quarter. 14.47% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Valley National Advisers Inc. raised its position in shares of Robinhood Markets by 113.6% during the third quarter. Valley National Advisers Inc. now owns 188 shares of the company’s stock valued at $26,000 after buying an additional 100 shares during the last quarter. Golden State Wealth Management LLC grew its stake in Robinhood Markets by 107.6% during the third quarter. Golden State Wealth Management LLC now owns 191 shares of the company’s stock valued at $27,000 after acquiring an additional 99 shares in the last quarter. Vision Financial Markets LLC lifted its stake in Robinhood Markets by 100.0% in the 3rd quarter. Vision Financial Markets LLC now owns 200 shares of the company’s stock worth $29,000 after purchasing an additional 100 shares in the last quarter. Stonehage Fleming Financial Services Holdings Ltd bought a new stake in shares of Robinhood Markets in the third quarter worth about $29,000. Finally, Guerra Advisors Inc purchased a new stake in shares of Robinhood Markets in the third quarter worth about $30,000. 93.27% of the stock is owned by hedge funds and other institutional investors.

Robinhood Markets Price Performance

The business has a 50-day moving average of $133.07 and a 200 day moving average of $111.25. The company has a market capitalization of $110.94 billion, a PE ratio of 51.20, a P/E/G ratio of 3.05 and a beta of 2.43.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings data 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. Robinhood Markets had a return on equity of 21.74% and a net margin of 52.19%.The business had revenue of $1.27 billion for the quarter, compared to analysts’ expectations of $1.15 billion. During the same period in the prior year, the firm earned $0.17 EPS. The company’s revenue for the quarter was up 100.0% on a year-over-year basis. As a group, research analysts anticipate that Robinhood Markets, Inc. will post 1.35 EPS for the current year.

Robinhood Markets Company Profile

Robinhood Markets, Inc operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The company offers fractional trading, recurring investments, fully-paid securities lending, access to investing on margin, cash sweep, instant withdrawals, retirement program, around-the-clock trading, and initial public offerings participation services.