Robinhood Markets (NASDAQ:HOOD) Stock Falls 1.8% – What’s Next?

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) fell 1.8% during mid-day trading on Tuesday. The company traded as low as $111.74 and last traded at $112.00. 17,399,366 shares were traded during trading, a decline of 36% from the average session volume of 27,246,328 shares. The stock had previously closed at $114.11.

Robinhood Markets News Roundup

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

• Positive Sentiment: Barclays raised its price target to $132 from $105 and maintained an “Overweight” rating, signaling confidence in Robinhood’s growth prospects. Webull’s regulatory troubles could also give Robinhood an opportunity to attract customers through transfer incentives, trading tools and a broader product lineup. Webull regulatory troubles and Robinhood competitive advantage
• Positive Sentiment: Robinhood Chain’s integration with NEAR Intents enables swaps across more than 180 assets, potentially expanding on-chain activity and customer engagement. The company’s reported push into private funds and other alternative investments could also increase wallet share among existing customers. Robinhood Chain NEAR integration
• Neutral Sentiment: Robinhood reportedly purchased about $25 million of bitcoin for its corporate balance sheet, a small investment intended to align the company with the crypto community. Separately, most of Robinhood’s approximately $25 billion in crypto holdings are customer assets held in custody, not company-owned investments. Robinhood bitcoin balance-sheet purchase
• Negative Sentiment: Weakness in bitcoin and the broader crypto rally is weighing on Robinhood shares, raising concerns about trading volumes and transaction revenue. The stock’s decline also reflects broader pressure on crypto-linked equities. Crypto market weakness
• Negative Sentiment: State regulators are scrutinizing Robinhood’s prediction-market business, creating a risk that restrictions could reduce sports-contract volumes and limit future monetization. Robinhood prediction-market regulation
• Negative Sentiment: CEO Vladimir Tenev sold 375,000 shares worth about $42.6 million, while insider Daniel Gallagher sold 10,000 shares. Both sales were made under pre-arranged Rule 10b5-1 plans, reducing their significance, but the transactions may still weigh on investor sentiment. Robinhood insider sale filing

Analysts Set New Price Targets

Several equities analysts have recently weighed in on HOOD shares. Piper Sandler reiterated an “overweight” rating and issued a $145.00 price target (up from $135.00) on shares of Robinhood Markets in a research report on Wednesday, September 2nd. China Renaissance assumed coverage on Robinhood Markets in a research note on Tuesday, July 7th. They issued a “buy” rating for the company. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Robinhood Markets in a report on Tuesday, September 15th. Zacks Research raised shares of Robinhood Markets from a “hold” rating to a “strong-buy” rating in a report on Thursday, September 3rd. Finally, Raymond James Financial restated a “market perform” rating on shares of Robinhood Markets in a research report on Monday. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $133.71.

Robinhood Markets Trading Down 1.4%

The stock has a market cap of $97.05 billion, a PE ratio of 47.49, a PEG ratio of 2.19 and a beta of 2.35. 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 firm has a fifty day simple moving average of $107.09 and a two-hundred day simple moving average of $94.62.

Robinhood Markets (NASDAQ:HOOD) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.44 by $0.18. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. The company had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.29 billion. During the same period in the prior year, the business earned $0.42 earnings per share. Robinhood Markets’s revenue for the quarter was up 32.5% compared to the same quarter last year. As a group, equities analysts expect that Robinhood Markets, Inc. will post 2.14 earnings per share for the current fiscal year.

Insider Activity

In other Robinhood Markets news, Director Oluwadara Treseder sold 1,875 shares of Robinhood Markets stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $125.00, for a total transaction of $234,375.00. Following the completion of the sale, the director owned 70,567 shares of the company’s stock, valued at $8,820,875. The trade was a 2.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Shiv Verma sold 11,472 shares of the company’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $110.42, for a total value of $1,266,738.24. Following the completion of the transaction, the chief financial officer owned 56,858 shares of the company’s stock, valued at $6,278,260.36. The trade was a 16.79% decrease in their ownership of the stock. 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 90 days, insiders have sold 1,089,658 shares of company stock worth $127,966,018. Corporate insiders own 13.48% of the company’s stock.

Hedge Funds Weigh In On Robinhood Markets

A number of large investors have recently modified their holdings of the company. State Street Corp grew its position in Robinhood Markets by 2.7% during the fourth quarter. State Street Corp now owns 33,121,452 shares of the company’s stock valued at $3,746,036,000 after acquiring an additional 875,297 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. grew its holdings in shares of Robinhood Markets by 10.2% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 6,812,999 shares of the company’s stock valued at $472,141,000 after purchasing an additional 632,403 shares during the last quarter. Amundi grew its holdings in shares of Robinhood Markets by 89.0% during the 1st quarter. Amundi now owns 6,385,232 shares of the company’s stock valued at $442,497,000 after purchasing an additional 3,007,103 shares during the last quarter. Amova Asset Management Americas Inc. raised its position in Robinhood Markets by 15.0% in the 1st quarter. Amova Asset Management Americas Inc. now owns 5,240,796 shares of the company’s stock worth $362,925,000 after purchasing an additional 685,041 shares during the period. Finally, Renaissance Technologies LLC lifted its stake in Robinhood Markets by 48.6% in the first quarter. Renaissance Technologies LLC now owns 5,104,137 shares of the company’s stock worth $353,717,000 after purchasing an additional 1,668,400 shares during the last quarter. 93.27% of the stock is owned by hedge funds and other institutional investors.

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.