Robinhood Markets (NASDAQ:HOOD) Shares Down 8.2% – What’s Next?

Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock price traded down 8.2% on Thursday . The company traded as low as $105.48 and last traded at $106.02. Approximately 28,185,816 shares were traded during trading, a decline of 6% from the average daily volume of 29,919,104 shares. The stock had previously closed at $115.54.

Robinhood Markets News Summary

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

• Positive Sentiment: Goldman Sachs raised its price target on Robinhood to $137 from $121 and reiterated a Buy rating ahead of earnings, signaling confidence in the company’s growth potential and implying meaningful upside from current levels. Goldman Sachs raises price target on Robinhood ahead of earnings
• Neutral Sentiment: Robinhood is drawing heavy investor attention online, with Zacks noting that the stock has become a trending name; this reflects interest rather than a direct fundamental catalyst. Robinhood Markets, Inc. (HOOD) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Robinhood recently benefited from a broad market upswing and has continued to trade well above its 50-day and 200-day moving averages, but that momentum has been offset by a more volatile tape in recent sessions. Robinhood Markets, Inc. (HOOD) Beats Stock Market Upswing: What Investors Need to Know
• Negative Sentiment: Brokerage stocks, including Robinhood, were hit by a Nasdaq-100 selloff and a decline in crypto prices, both of which can reduce trading activity and weigh on revenue expectations. Robinhood Drops 4%, Webull Tumbles 6% as NASDAQ 100 Selloff and Crypto Dip Hit Retail-Brokerage Stocks
• Negative Sentiment: Reports that Robinhood is selling $400 million of credit-card asset-backed bonds added to investor caution, likely feeding concerns about financing activity and broader market stress. Why Is Robinhood Stock Falling on Friday?

Analyst Upgrades and Downgrades

A number of brokerages recently commented on HOOD. Zacks Research upgraded Robinhood Markets from a “strong sell” rating to a “hold” rating in a research report on Monday, June 8th. Jefferies Financial Group cut their price objective on shares of Robinhood Markets from $88.00 to $84.00 and set a “buy” rating for the company in a research report on Monday, April 6th. Keefe, Bruyette & Woods decreased their target price on shares of Robinhood Markets from $75.00 to $65.00 and set a “market perform” rating on the stock in a report on Wednesday, April 29th. Truist Financial dropped their target price on shares of Robinhood Markets from $120.00 to $100.00 and set a “buy” rating for the company in a research report on Monday, April 13th. Finally, Piper Sandler reiterated an “overweight” rating on shares of Robinhood Markets in a research report on Thursday, July 2nd. Twenty-one research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, Robinhood Markets has a consensus rating of “Moderate Buy” and a consensus target price of $118.70.

Robinhood Markets Stock Performance

The company has a market cap of $90.01 billion, a price-to-earnings ratio of 48.29, a PEG ratio of 2.24 and a beta of 2.33. The business has a fifty day moving average price of $94.26 and a 200 day moving average price of $89.09.

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

Insiders Place Their Bets

In other Robinhood Markets news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the firm’s stock in a transaction that occurred 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 sale, the insider owned 481,396 shares in the company, valued at $40,283,217.28. This trade represents a 2.04% decrease in their ownership of the stock. 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 acquired 250,000 shares of Robinhood Markets stock in a transaction that occurred on Friday, June 5th. The shares were purchased at an average price of $80.74 per share, for a total transaction of $20,185,000.00. Following the transaction, the director directly owned 3,924,427 shares in the company, valued at $316,858,235.98. The trade was a 6.80% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders have purchased 680,000 shares of company stock worth $55,306,560 and have sold 587,875 shares worth $62,602,915. 13.48% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Robinhood Markets

Hedge funds have recently modified their holdings of the business. Empowered Funds LLC raised its position in Robinhood Markets by 46.7% during the 1st quarter. Empowered Funds LLC now owns 49,870 shares of the company’s stock worth $2,076,000 after purchasing an additional 15,885 shares during the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in shares of Robinhood Markets in the 2nd quarter valued at about $5,105,000. Federated Hermes Inc. increased its stake in shares of Robinhood Markets by 106.2% in the second quarter. Federated Hermes Inc. now owns 63,957 shares of the company’s stock valued at $5,988,000 after buying an additional 32,933 shares during the period. NewEdge Advisors LLC increased its stake in shares of Robinhood Markets by 19.1% in the second quarter. NewEdge Advisors LLC now owns 89,676 shares of the company’s stock valued at $8,396,000 after buying an additional 14,356 shares during the period. Finally, Nebula Research & Development LLC bought a new position in shares of Robinhood Markets during the second quarter worth about $1,316,000. Institutional investors and hedge funds own 93.27% of the company’s stock.

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.