Robinhood Markets (NASDAQ:HOOD) Stock Price Down 2.3% – Here’s Why

Robinhood Markets, Inc. (NASDAQ:HOOD) fell 2.3% during trading on Tuesday . The company traded as low as $101.03 and last traded at $103.25. 40,313,660 shares were traded during trading, an increase of 32% from the average session volume of 30,544,010 shares. The stock had previously closed at $105.71.

More Robinhood Markets News

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

• Positive Sentiment: Robinhood said it will use about $290 million of the proceeds to repurchase shares, which could help support the stock and offset some dilution concerns. Article Title
• Positive Sentiment: The company also plans to use capped call transactions to reduce potential share dilution if the notes are converted, which is a shareholder-friendly feature. Article Title
• Neutral Sentiment: Analyst and market commentary continues to highlight strong trading activity in Robinhood and ongoing interest in the stock, which may help keep investor attention high. Article Title
• Neutral Sentiment: Commentary from Jim Cramer suggesting Robinhood’s layoffs may be tied to AI is more of a narrative item than a direct catalyst, so its stock impact is less clear. Article Title
• Negative Sentiment: The convertible debt raise is the main bearish catalyst today because it signals Robinhood is tapping capital markets and raises concerns that existing shareholders could be diluted later. Article Title

Analysts Set New Price Targets

A number of brokerages recently issued reports on HOOD. Zacks Research upgraded shares of Robinhood Markets from a “strong sell” rating to a “hold” rating in a research report on Monday, June 8th. Wall Street Zen upgraded Robinhood Markets from a “strong sell” rating to a “sell” rating in a report on Saturday, June 13th. Needham & Company LLC lifted their price objective on Robinhood Markets from $85.00 to $97.00 and gave the company a “buy” rating in a research report on Thursday, June 11th. Morgan Stanley reduced their target price on Robinhood Markets from $147.00 to $95.00 and set an “equal weight” rating on the stock in a research report on Friday, April 10th. Finally, Keefe, Bruyette & Woods lowered their price target on Robinhood Markets from $75.00 to $65.00 and set a “market perform” rating for the company in a report on Wednesday, April 29th. Eighteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $112.36.

Robinhood Markets Stock Down 2.3%

The stock has a market cap of $92.98 billion, a price-to-earnings ratio of 49.88, a PEG ratio of 2.54 and a beta of 2.35. The stock has a fifty day moving average of $84.14 and a two-hundred day moving average of $91.12.

Robinhood Markets (NASDAQ:HOOD) last announced its quarterly earnings results on Tuesday, April 28th. The company reported $0.38 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.01). The firm had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.14 billion. Robinhood Markets had a return on equity of 21.39% and a net margin of 41.12%.The business’s revenue was up 15.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.37 earnings per share. Equities research analysts anticipate that Robinhood Markets, Inc. will post 1.81 EPS for the current fiscal year.

Insider Activity

In other Robinhood Markets news, Director Meyer Malka bought 250,000 shares of the company’s stock in a transaction that occurred on Friday, June 5th. The stock was purchased at an average price of $80.74 per share, with a total value of $20,185,000.00. Following the transaction, the director owned 3,924,427 shares in the company, valued at $316,858,235.98. This trade represents a 6.80% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, 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 transaction of $836,800.00. Following the completion of the transaction, the insider owned 481,396 shares in the company, valued at $40,283,217.28. The trade was a 2.04% decrease in their position. 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 90 days, insiders have acquired 680,000 shares of company stock worth $55,306,560 and have sold 633,484 shares worth $47,542,923. Company insiders own 19.95% of the company’s stock.

Hedge Funds Weigh In On Robinhood Markets

Hedge funds and other institutional investors have recently made changes to their positions in the business. Militia Capital Management LLC acquired a new stake in Robinhood Markets in the 1st quarter valued at $1,641,000. Rathbones Group PLC lifted its stake in shares of Robinhood Markets by 3.3% during the first quarter. Rathbones Group PLC now owns 5,129 shares of the company’s stock worth $355,000 after purchasing an additional 165 shares in the last quarter. Glenmede Trust Co. NA lifted its stake in shares of Robinhood Markets by 22.5% during the first quarter. Glenmede Trust Co. NA now owns 10,426 shares of the company’s stock worth $723,000 after purchasing an additional 1,914 shares in the last quarter. Summitry LLC purchased a new stake in shares of Robinhood Markets in the first quarter worth about $432,000. Finally, Groupama Asset Managment purchased a new stake in shares of Robinhood Markets in the first quarter worth about $260,000. Institutional investors and hedge funds own 93.27% of the company’s stock.

Robinhood Markets Company Profile

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.