Robinhood Markets (NASDAQ:HOOD) Stock Price Down 2.8% – Should You Sell?

Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock price fell 2.8% during mid-day trading on Thursday . The company traded as low as $99.32 and last traded at $101.58. Approximately 16,220,213 shares changed hands during trading, a decline of 45% from the average session volume of 29,515,754 shares. The stock had previously closed at $104.48.

More Robinhood Markets News

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

• Positive Sentiment: KeyCorp raised its price target on Robinhood Markets (HOOD) to $125 and kept an overweight rating, signaling Wall Street still sees meaningful upside ahead of the company’s Q2 report. Benzinga report on KeyCorp target raise
• Positive Sentiment: Bernstein said Robinhood’s prediction-market revenue could reach $1.7 billion by 2028 and may overtake crypto revenue as early as next quarter, highlighting a potentially important new growth driver. Yahoo Finance article on prediction markets
• Positive Sentiment: Robinhood launched a Platinum Card-related WHOOP benefit and continues expanding its premium ecosystem, which may help strengthen user engagement and subscription revenue. Yahoo Finance article on WHOOP partnership
• Neutral Sentiment: Analysts expect Robinhood to beat Q2 earnings estimates, but the upcoming report still creates event risk for the stock as investors wait for confirmation. Zacks earnings preview
• Neutral Sentiment: Recent commentary also notes Robinhood’s trading volume and market moves have been affected by broader tech weakness and portfolio rebalancing by major investors like ARK Invest. Benzinga report on stock falling
• Negative Sentiment: ARK Invest reportedly sold more HOOD shares again, which can weigh on sentiment even if the company’s fundamentals remain intact. Stocktwits article on ARK selling HOOD

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on HOOD shares. JPMorgan Chase & Co. reduced their price objective on Robinhood Markets from $113.00 to $92.00 and set a “neutral” rating for the company in a research report on Thursday, April 23rd. Piper Sandler reaffirmed an “overweight” rating on shares of Robinhood Markets in a research report on Thursday, July 2nd. Morgan Stanley raised their price target on Robinhood Markets from $95.00 to $124.00 and gave the stock an “equal weight” rating in a research note on Friday, July 10th. Citigroup reiterated a “market outperform” rating on shares of Robinhood Markets in a research note on Thursday, May 28th. Finally, Mizuho boosted their target price on shares of Robinhood Markets from $115.00 to $130.00 and gave the stock an “outperform” rating in a research report on Thursday, July 2nd. Twenty-one investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $122.22.

Robinhood Markets Trading Down 2.8%

The firm has a 50-day moving average of $95.75 and a two-hundred day moving average of $88.67. The firm has a market cap of $91.47 billion, a price-to-earnings ratio of 49.07, a PEG ratio of 2.25 and a beta of 2.33.

Robinhood Markets (NASDAQ:HOOD) last announced its quarterly earnings data on Tuesday, April 28th. The company reported $0.38 EPS for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). The firm had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.14 billion. Robinhood Markets had a return on equity of 21.39% and a net margin of 41.12%.Robinhood Markets’s revenue was up 15.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.37 EPS. As a group, equities analysts anticipate that Robinhood Markets, Inc. will post 1.86 EPS for the current year.

Insider Buying and Selling

In other news, CEO Vladimir Tenev sold 375,000 shares of Robinhood Markets stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $116.17, for a total transaction of $43,563,750.00. Following the completion of the sale, the chief executive officer owned 375,000 shares in the company, valued at $43,563,750. The trade was a 50.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $83.68, for a total value of $836,800.00. Following the completion of the transaction, the insider directly owned 481,396 shares in the company, valued at approximately $40,283,217.28. This trade represents a 2.04% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have purchased 680,000 shares of company stock valued at $55,306,560 and have sold 587,875 shares valued at $62,602,915. 13.48% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Robinhood Markets

A number of hedge funds and other institutional investors have recently made changes to their positions in HOOD. CYBER HORNET ETFs LLC lifted its stake in Robinhood Markets by 527.8% in the 4th quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company’s stock valued at $26,000 after acquiring an additional 190 shares in the last quarter. MV Capital Management Inc. acquired a new stake in shares of Robinhood Markets during the 4th quarter worth about $27,000. Swiss RE Ltd. bought a new position in shares of Robinhood Markets during the fourth quarter worth approximately $27,000. Elyxium Wealth LLC acquired a new position in shares of Robinhood Markets in the fourth quarter valued at about $27,000. Finally, Sound Income Strategies LLC grew its position in Robinhood Markets by 152.6% during the fourth quarter. Sound Income Strategies LLC now owns 240 shares of the company’s stock worth $26,000 after buying an additional 145 shares in the last quarter. 93.27% of the stock is currently owned by institutional investors and hedge funds.

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.