Robinhood Markets (NASDAQ:HOOD) Shares Down 2.1% – What’s Next?

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price traded down 2.1% on Friday . The stock traded as low as $119.82 and last traded at $122.11. Approximately 23,607,239 shares were traded during mid-day trading, a decline of 15% from the average session volume of 27,893,854 shares. The stock had previously closed at $124.72.

Key Stories Impacting Robinhood Markets

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

• Positive Sentiment: Analyst sentiment remains supportive. Scotiabank initiated coverage with a bullish view, while Piper Sandler raised its price target to $145 and expects football-related event contracts to increase activity. Robinhood generated $156 million from event contracts in the second quarter. Robinhood Stock Jumps After Wave of Analysts Upgrade
• Positive Sentiment: Robinhood Chain and crypto activity are emerging growth drivers. The new blockchain reportedly generated about $3.8 million in fees on September 1, while the company now has 13 business lines with more than $100 million in annualized revenue. Deutsche Bank also sees potential upside from Robinhood’s latest crypto initiatives. Robinhood Now Runs 13 Revenue Lines Above $100 Million a Year
• Positive Sentiment: CEO Vlad Tenev said Robinhood’s newly launched Trust Accounts have attracted more than $150 million since August, suggesting early customer demand for the offering. Robinhood Trust Accounts Now Have Over $150 Million

Analyst Ratings Changes

Several equities analysts recently commented on HOOD shares. Cantor Fitzgerald reduced their target price on Robinhood Markets from $130.00 to $115.00 and set an “overweight” rating for the company in a research report on Monday, August 3rd. KeyCorp raised their price target on Robinhood Markets from $100.00 to $125.00 and gave the company an “overweight” rating in a report on Wednesday, July 22nd. Weiss Ratings reiterated a “hold (c)” rating on shares of Robinhood Markets in a research report on Wednesday, June 24th. Piper Sandler reissued an “overweight” rating and set a $145.00 price objective (up from $135.00) on shares of Robinhood Markets in a report on Wednesday. Finally, Loop Capital set a $105.00 price objective on shares of Robinhood Markets in a research report on Thursday, July 30th. Twenty-three research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $122.67.

Robinhood Markets Price Performance

The firm’s 50-day moving average is $102.27 and its 200-day moving average is $88.02. The company has a market capitalization of $109.79 billion, a PE ratio of 53.79, a price-to-earnings-growth ratio of 2.19 and a beta of 2.34. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.23.

Robinhood Markets (NASDAQ:HOOD) last released its earnings results on Wednesday, July 29th. The company reported $0.62 EPS 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 business had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.29 billion. During the same quarter in the prior year, the firm earned $0.42 earnings per share. The firm’s revenue was up 32.5% on a year-over-year basis. Equities analysts predict that Robinhood Markets, Inc. will post 2.08 earnings per share for the current fiscal year.

Insider Activity

In other Robinhood Markets news, Director Paula Loop sold 8,336 shares of the company’s stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $120.00, for a total value of $1,000,320.00. Following the completion of the sale, the director owned 63,674 shares of the company’s stock, valued at $7,640,880. This represents a 11.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Baiju Bhatt sold 57,898 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $89.63, for a total transaction of $5,189,397.74. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 591,867 shares of company stock worth $64,907,806. 13.48% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Robinhood Markets

Institutional investors have recently made changes to their positions in the business. Empowered Funds LLC raised its position in Robinhood Markets by 46.7% in 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 period. Arrowstreet Capital Limited Partnership purchased a new stake in Robinhood Markets during the second quarter valued at about $5,105,000. Federated Hermes Inc. boosted its position in Robinhood Markets by 106.2% during 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 grew its stake in shares of Robinhood Markets by 19.1% during 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 last quarter. Finally, Nebula Research & Development LLC bought a new position in shares of Robinhood Markets during the second quarter valued at about $1,316,000. Hedge funds and other institutional investors 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.