Robinhood Markets (NASDAQ:HOOD) Stock Price Down 5.9% – Here’s What Happened

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price dropped 5.9% on Wednesday . The stock traded as low as $96.30 and last traded at $97.1840. 29,953,391 shares traded hands during mid-day trading, a decline of 2% from the average session volume of 30,566,932 shares. The stock had previously closed at $103.25.

More Robinhood Markets News

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

• Positive Sentiment: Truist said June trading volumes point to a record quarter for Robinhood Markets (HOOD), with transaction revenue tracking ahead of estimates. Truist Stays Bullish on Robinhood as June Volumes Point to Record Quarter
• Positive Sentiment: Robinhood’s latest convertible note deal includes about $290 million earmarked for share repurchases and capped calls designed to reduce dilution, which can support the stock. Robinhood Announces Pricing of Private Offering of $2.0 Billion of Convertible Senior Notes Due 2029
• Positive Sentiment: Some investors remain optimistic that Robinhood’s expanding platform and new revenue opportunities could keep growth strong beyond traditional trading fees. 50,000 Reasons to Buy Robinhood Stock Now

Analysts Set New Price Targets

HOOD has been the topic of several recent analyst reports. The Goldman Sachs Group upped their price target on Robinhood Markets from $95.00 to $105.00 and gave the company a “buy” rating in a research note on Thursday, June 4th. Zacks Research upgraded shares of Robinhood Markets from a “strong sell” rating to a “hold” rating in a report on Monday, June 8th. Citigroup reaffirmed a “market outperform” rating on shares of Robinhood Markets in a research report on Thursday, May 28th. Wall Street Zen raised shares of Robinhood Markets from a “strong sell” rating to a “sell” rating in a research note on Saturday, June 13th. Finally, JPMorgan Chase & Co. dropped their price target on shares of Robinhood Markets from $113.00 to $92.00 and set a “neutral” rating for the company in a research report on Thursday, April 23rd. Eighteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $112.36.

Robinhood Markets Price Performance

The stock has a 50 day moving average price of $84.83 and a two-hundred day moving average price of $90.90. The firm has a market capitalization of $87.51 billion, a price-to-earnings ratio of 46.95, a PEG ratio of 2.50 and a beta of 2.35.

Robinhood Markets (NASDAQ:HOOD) last posted its earnings results on Tuesday, April 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.01). The firm had revenue of $1.07 billion for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same period in the previous year, the company posted $0.37 EPS. As a group, research analysts expect that Robinhood Markets, Inc. will post 1.8 earnings per share for the current fiscal year.

Insider Transactions at Robinhood Markets

In other Robinhood Markets news, insider Steven M. Quirk sold 10,837 shares of the firm’s stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $85.91, for a total value of $931,006.67. Following the completion of the transaction, the insider owned 81,989 shares of the company’s stock, valued at $7,043,674.99. This trade represents a 11.67% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Meyer Malka purchased 250,000 shares of the company’s stock in a transaction on Friday, June 5th. The stock was acquired at an average price of $80.74 per share, with a total value of $20,185,000.00. Following the purchase, the director owned 3,924,427 shares of the company’s stock, valued at approximately $316,858,235.98. This represents a 6.80% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders have acquired 680,000 shares of company stock valued at $55,306,560 and have sold 633,484 shares valued at $47,542,923. 19.95% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Evolution Wealth Advisors LLC raised its position in Robinhood Markets by 5.2% in the 4th quarter. Evolution Wealth Advisors LLC now owns 1,916 shares of the company’s stock valued at $217,000 after purchasing an additional 95 shares in the last quarter. CogentBlue Wealth Advisors LLC increased its stake in shares of Robinhood Markets by 4.1% during the fourth quarter. CogentBlue Wealth Advisors LLC now owns 2,489 shares of the company’s stock worth $282,000 after buying an additional 98 shares during the period. SOA Wealth Advisors LLC. increased its stake in shares of Robinhood Markets by 11.5% during the fourth quarter. SOA Wealth Advisors LLC. now owns 968 shares of the company’s stock worth $109,000 after buying an additional 100 shares during the period. Mill Creek Capital Advisors LLC raised its holdings in Robinhood Markets by 1.8% in the third quarter. Mill Creek Capital Advisors LLC now owns 6,107 shares of the company’s stock valued at $874,000 after acquiring an additional 107 shares in the last quarter. Finally, Barnes Dennig Private Wealth Management LLC raised its holdings in Robinhood Markets by 10.2% in the fourth quarter. Barnes Dennig Private Wealth Management LLC now owns 1,210 shares of the company’s stock valued at $137,000 after acquiring an additional 112 shares in the last quarter. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

About Robinhood Markets

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.