Robinhood Markets (NASDAQ:HOOD) Shares Down 2.5% – Should You Sell?

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) fell 2.5% during mid-day trading on Monday. The company traded as low as $116.06 and last traded at $116.46. Approximately 12,539,140 shares traded hands during mid-day trading, a decline of 54% from the average session volume of 27,389,486 shares. The stock had previously closed at $119.40.

Analysts Set New Price Targets

A number of equities analysts have weighed in on HOOD shares. BTIG Research restated a “buy” rating and issued a $125.00 price target on shares of Robinhood Markets in a report on Thursday, July 30th. Weiss Ratings reiterated a “hold (c)” rating on shares of Robinhood Markets in a research note on Monday, September 21st. Jefferies Financial Group boosted their target price on shares of Robinhood Markets from $127.00 to $140.00 and gave the stock a “buy” rating in a research report on Tuesday, September 8th. Benchmark upgraded shares of Robinhood Markets to a “strong-buy” rating in a research note on Wednesday, September 9th. Finally, Zacks Research raised shares of Robinhood Markets from a “hold” rating to a “strong-buy” rating in a report on Thursday, September 3rd. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, Robinhood Markets presently has an average rating of “Moderate Buy” and a consensus target price of $130.70.

Robinhood Markets Price Performance

The stock has a market cap of $104.71 billion, a PE ratio of 51.30, a P/E/G ratio of 2.38 and a beta of 2.34. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.22 and a quick ratio of 1.22. The business has a fifty day moving average of $104.69 and a 200 day moving average of $92.54.

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

Insider Buying and Selling at Robinhood Markets

In other Robinhood Markets news, CFO Shiv Verma sold 11,472 shares of the stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $110.42, for a total transaction of $1,266,738.24. Following the transaction, the chief financial officer directly owned 56,858 shares in the company, valued at $6,278,260.36. This represents a 16.79% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Tenev sold 240,834 shares of the firm’s stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $125.33, for a total transaction of $30,183,725.22. Following the transaction, the chief executive officer directly owned 240,834 shares of the company’s stock, valued at approximately $30,183,725.22. This represents a 50.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 1,121,121 shares of company stock valued at $132,674,478. Corporate insiders own 13.48% of the company’s stock.

Institutional Investors Weigh In On Robinhood Markets

Institutional investors have recently modified their holdings of the stock. Nomura Asset Management Co. Ltd. lifted its holdings in Robinhood Markets by 196.3% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 722,857 shares of the company’s stock worth $81,755,000 after buying an additional 478,919 shares during the last quarter. Wellington Management Group LLP increased its holdings in shares of Robinhood Markets by 37.1% in the 2nd quarter. Wellington Management Group LLP now owns 786,318 shares of the company’s stock valued at $78,852,000 after acquiring an additional 212,855 shares during the last quarter. Public Employees Retirement System of Ohio acquired a new stake in shares of Robinhood Markets during the 2nd quarter valued at approximately $22,691,000. Groupe la Francaise bought a new position in Robinhood Markets during the second quarter worth $5,544,000. Finally, NewEdge Advisors LLC lifted its stake in Robinhood Markets by 18.3% during the second quarter. NewEdge Advisors LLC now owns 68,920 shares of the company’s stock worth $6,911,000 after purchasing an additional 10,685 shares during the last quarter. Institutional investors and hedge funds own 93.27% of the company’s stock.

About Robinhood Markets

Robinhood Markets, Inc (NASDAQ: HOOD) operates a financial services platform designed to provide investing and trading products through mobile applications and a website. Its offerings include commission-free trading in stocks and exchange-traded funds, options trading, cryptocurrency services, margin investing, and retirement accounts. The company also provides cash management features and other tools intended to help customers manage and invest their money.

Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood gained prominence by expanding access to investing through a low-cost, easy-to-use digital platform.