Robinhood Markets (NASDAQ:HOOD) Trading Down 6.2% – Should You Sell?

Robinhood Markets, Inc. (NASDAQ:HOOD) was down 6.2% during trading on Tuesday . The company traded as low as $40.34 and last traded at $40.53. Approximately 10,221,125 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 16,865,992 shares. The stock had previously closed at $43.20.

Analyst Ratings Changes

Several analysts recently issued reports on HOOD shares. KeyCorp upped their price objective on shares of Robinhood Markets from $30.00 to $47.00 and gave the company an “overweight” rating in a research note on Thursday, December 5th. JMP Securities lifted their price target on Robinhood Markets from $33.00 to $40.00 and gave the stock a “market outperform” rating in a report on Tuesday, November 12th. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Robinhood Markets from $36.00 to $42.00 and gave the stock a “buy” rating in a research report on Thursday, December 5th. Morgan Stanley raised Robinhood Markets from an “equal weight” rating to an “overweight” rating and raised their price objective for the stock from $24.00 to $55.00 in a research report on Monday, November 25th. Finally, Sanford C. Bernstein increased their price objective on shares of Robinhood Markets from $30.00 to $51.00 and gave the stock an “outperform” rating in a research report on Wednesday, November 20th. One analyst has rated the stock with a sell rating, two have issued a hold rating and twelve have assigned a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $38.13.

Robinhood Markets Stock Down 4.1 %

The company has a market cap of $36.64 billion, a price-to-earnings ratio of 73.22, a price-to-earnings-growth ratio of 0.76 and a beta of 2.09. The company has a fifty day simple moving average of $32.10 and a two-hundred day simple moving average of $25.19.

Robinhood Markets (NASDAQ:HOOD) last announced its quarterly earnings results on Wednesday, October 30th. The company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.01). Robinhood Markets had a net margin of 21.80% and a return on equity of 7.52%. The business had revenue of $637.00 million during the quarter, compared to analysts’ expectations of $660.53 million. During the same period last year, the company earned ($0.09) EPS. The firm’s revenue for the quarter was up 36.4% on a year-over-year basis. On average, research analysts predict that Robinhood Markets, Inc. will post 0.8 EPS for the current year.

Insider Buying and Selling

In related news, insider Daniel Martin Gallagher, Jr. sold 12,500 shares of the firm’s stock in a transaction that occurred on Tuesday, December 3rd. The shares were sold at an average price of $38.22, for a total value of $477,750.00. Following the sale, the insider now directly owns 1,106,955 shares of the company’s stock, valued at approximately $42,307,820.10. This trade represents a 1.12 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Meyer Malka sold 3,225,806 shares of the business’s stock in a transaction on Tuesday, October 8th. The shares were sold at an average price of $25.07, for a total transaction of $80,870,956.42. Following the sale, the director now directly owns 29,357,336 shares of the company’s stock, valued at $735,988,413.52. This represents a 9.90 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 6,037,689 shares of company stock worth $177,092,487. 19.95% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Blue Trust Inc. lifted its stake in shares of Robinhood Markets by 2,918.3% in the 2nd quarter. Blue Trust Inc. now owns 8,089 shares of the company’s stock valued at $184,000 after purchasing an additional 7,821 shares in the last quarter. Raymond James & Associates boosted its stake in shares of Robinhood Markets by 28.6% during the 2nd quarter. Raymond James & Associates now owns 56,203 shares of the company’s stock valued at $1,276,000 after buying an additional 12,512 shares during the last quarter. Nisa Investment Advisors LLC raised its holdings in Robinhood Markets by 2,611.8% in the second quarter. Nisa Investment Advisors LLC now owns 39,050 shares of the company’s stock valued at $887,000 after acquiring an additional 37,610 shares in the last quarter. Pallas Capital Advisors LLC bought a new stake in shares of Robinhood Markets in the 2nd quarter valued at approximately $258,000. Finally, Fullcircle Wealth LLC acquired a new stake in shares of Robinhood Markets during the 2nd quarter valued at approximately $218,000. Institutional investors and hedge funds own 93.27% of the company’s stock.

About Robinhood Markets

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.