Robinhood Markets (NASDAQ:HOOD) Shares Down 4.5% – Here’s What Happened

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) dropped 4.5% during mid-day trading on Friday . The stock traded as low as $74.82 and last traded at $75.85. Approximately 23,108,927 shares traded hands during mid-day trading, a decline of 24% from the average daily volume of 30,582,113 shares. The stock had previously closed at $79.45.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on HOOD. Cantor Fitzgerald lowered their price objective on Robinhood Markets from $130.00 to $100.00 and set an “overweight” rating for the company in a research report on Tuesday, February 17th. Mizuho dropped their price target on Robinhood Markets from $172.00 to $135.00 and set an “outperform” rating on the stock in a research note on Tuesday, February 17th. Truist Financial reduced their price objective on shares of Robinhood Markets from $130.00 to $120.00 and set a “buy” rating for the company in a research report on Thursday, February 12th. Wolfe Research upgraded shares of Robinhood Markets from a “peer perform” rating to an “outperform” rating and set a $125.00 target price on the stock in a research report on Monday, February 9th. Finally, Bank of America reduced their price target on shares of Robinhood Markets from $166.00 to $154.00 and set a “buy” rating for the company in a report on Wednesday, December 10th. Seventeen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Robinhood Markets currently has an average rating of “Moderate Buy” and a consensus target price of $121.71.

Robinhood Markets Price Performance

The business’s fifty day moving average price is $100.14 and its 200-day moving average price is $116.23. The stock has a market capitalization of $68.20 billion, a price-to-earnings ratio of 36.82, a PEG ratio of 1.57 and a beta of 2.43.

Robinhood Markets (NASDAQ:HOOD) last released its quarterly earnings results on Tuesday, February 10th. The company reported $0.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.63 by $0.03. The business had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.32 billion. Robinhood Markets had a return on equity of 22.32% and a net margin of 42.10%.The company’s quarterly revenue was up 26.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.01 EPS. Equities research analysts predict that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Vladimir Tenev sold 375,000 shares of the business’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $121.63, for a total transaction of $45,611,250.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Steven M. Quirk sold 52,540 shares of the company’s stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $87.81, for a total transaction of $4,613,537.40. Following the completion of the sale, the insider directly owned 27,564 shares of the company’s stock, valued at $2,420,394.84. The trade was a 65.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 640,939 shares of company stock worth $77,553,447. 14.47% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of HOOD. Anchor Investment Management LLC bought a new position in Robinhood Markets in the 4th quarter valued at $68,000. Banque Transatlantique SA grew its position in Robinhood Markets by 32.2% during the fourth quarter. Banque Transatlantique SA now owns 15,000 shares of the company’s stock valued at $1,697,000 after buying an additional 3,656 shares during the period. MidFirst Bank purchased a new stake in Robinhood Markets during the fourth quarter worth about $426,000. Floyd Financial Group LLC bought a new stake in Robinhood Markets in the fourth quarter worth about $991,000. Finally, Beaird Harris Wealth Management LLC boosted its stake in Robinhood Markets by 3.6% in the fourth quarter. Beaird Harris Wealth Management LLC now owns 31,502 shares of the company’s stock valued at $3,563,000 after acquiring an additional 1,089 shares during the last quarter. 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.