Insider Selling: Robinhood Markets (NASDAQ:HOOD) CEO Sells 240,834 Shares of Stock

Robinhood Markets, Inc. (NASDAQ:HOOD) CEO Vladimir Tenev sold 240,834 shares of Robinhood Markets stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $125.33, for a total transaction of $30,183,725.22. Following the completion of the transaction, the chief executive officer owned 240,834 shares of the company’s stock, valued at $30,183,725.22. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Vladimir Tenev also recently made the following trade(s):

• On Monday, September 21st, Vladimir Tenev sold 259,166 shares of Robinhood Markets stock. The stock was sold at an average price of $125.58, for a total value of $32,546,066.28.
• On Monday, July 6th, Vladimir Tenev sold 375,000 shares of Robinhood Markets stock. The stock was sold at an average price of $116.17, for a total value of $43,563,750.00.

Robinhood Markets Stock Performance

Shares of NASDAQ HOOD traded down $1.88 during mid-day trading on Thursday, hitting $120.82. The company had a trading volume of 14,732,608 shares, compared to its average volume of 27,551,682. Robinhood Markets, Inc. has a 1 year low of $63.51 and a 1 year high of $153.86. The company has a market capitalization of $108.63 billion, a price-to-earnings ratio of 53.22, a P/E/G ratio of 2.48 and a beta of 2.34. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.23. The stock’s 50-day moving average price is $104.01 and its 200-day moving average price is $91.95.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.62 EPS for the quarter, beating the consensus estimate of $0.44 by $0.18. The company had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.29 billion. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. Robinhood Markets’s revenue for the quarter was up 32.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.42 earnings per share. On average, sell-side analysts forecast that Robinhood Markets, Inc. will post 2.15 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. MV Capital Management Inc. bought a new position in shares of Robinhood Markets during the 4th quarter valued at about $27,000. C M Bidwell & Associates Ltd. purchased a new position in shares of Robinhood Markets during the 2nd quarter valued at about $27,000. Glen Eagle Advisors LLC lifted its position in Robinhood Markets by 812.9% in the 4th quarter. Glen Eagle Advisors LLC now owns 283 shares of the company’s stock worth $32,000 after buying an additional 252 shares during the last quarter. SHP Wealth Management purchased a new stake in Robinhood Markets in the fourth quarter worth approximately $32,000. Finally, Copos Capital S.a r.l. bought a new position in Robinhood Markets during the fourth quarter valued at approximately $33,000. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Robinhood Markets

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

• Positive Sentiment: Expansion of prediction markets: Robinhood is moving beyond sports-related contracts, with crypto-linked prediction products gaining traction. CEO Vlad Tenev has said crypto could eventually dominate prediction markets, potentially creating a new source of transaction revenue despite increased regulatory scrutiny. Robinhood’s Prediction Markets Move Beyond Sports
• Positive Sentiment: Robinhood Chain progress: Robinhood Chain integrated with Zerion as reported decentralized-exchange volume reached $1.88 billion. The development could increase access to decentralized finance and strengthen Robinhood’s blockchain ecosystem. Robinhood Chain integrates with Zerion
• Neutral Sentiment: Analyst sentiment remains favorable: Robinhood has a consensus “Moderate Buy” rating and an average price target above its recent trading level. However, targets vary considerably, reflecting uncertainty around valuation and regulation.
• Negative Sentiment: CEO stock sale weighs on sentiment: Vladimir Tenev sold 259,166 shares worth approximately $32.5 million, cutting his direct ownership by half. The sale was conducted under a pre-arranged Rule 10b5-1 plan, reducing its value as a bearish signal, but its size has nevertheless intensified selling concerns. SEC insider transaction filing
• Negative Sentiment: Sector-wide selling and valuation risk: Webull’s sharp decline following insider-sale headlines has pressured other brokerage stocks, including Robinhood and Interactive Brokers. HOOD also trades well above its 50-day and 200-day moving averages and at a relatively high earnings multiple, increasing the risk of profit-taking.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Deutsche Bank Aktiengesellschaft upped their price target on shares of Robinhood Markets from $136.00 to $138.00 and gave the stock a “buy” rating in a report on Monday, September 14th. Needham & Company LLC reduced their target price on Robinhood Markets from $123.00 to $120.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Benchmark upgraded Robinhood Markets to a “strong-buy” rating in a research note on Wednesday, September 9th. Piper Sandler reiterated an “overweight” rating and set a $145.00 price target (up from $135.00) on shares of Robinhood Markets in a research report on Wednesday, September 2nd. Finally, Barclays dropped their price target on Robinhood Markets from $122.00 to $105.00 and set an “overweight” rating for the company in a research report on Thursday, July 30th. 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 company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $130.70.

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.