Robinhood Markets (NASDAQ:HOOD) Shares Gap Down - Here's Why

On Tuesday, Robinhood Markets, Inc. (NASDAQ:HOOD) experienced a notable drop in its stock price before the market opened. The shares closed at $42.02 but opened significantly lower at $40.80. By the end of the trading session, the stock was last seen at $39.68, with a trading volume of 5,828,533 shares.

Recent Analyst Ratings

A number of research firms have recently updated their ratings and price targets for Robinhood Markets. Barclays raised their price target from $54.00 to $76.00 and assigned an "overweight" rating to the stock. Similarly, Piper Sandler increased their target price from $54.00 to $75.00 while maintaining an "overweight" rating. Sanford C. Bernstein lifted their target from $30.00 to $51.00, issuing an "outperform" rating. Additionally, Needham & Company set a new target price of $70.00 and classified the stock as a "buy." KeyCorp also raised their price objective from $57.00 to $75.00, keeping an "overweight" rating. Overall, five analysts have rated Robinhood with a hold, while twelve analysts have issued buy ratings, resulting in an average rating of "Moderate Buy" and an average price target of $61.31 according to MarketBeat.com.

Price Performance Overview

In the past, Robinhood has shown a significant price performance with a fifty-day simple moving average standing at $48.87 and a two-hundred-day average at $36.76. The firm currently holds a market capitalization of $35.05 billion with a price-to-earnings (P/E) ratio of 25.15 and a P/E/G ratio of 1.05. The company also has a beta of 2.14, indicating higher volatility compared to the market.

Quarterly Earnings Data

Robinhood recently released its quarterly earnings, showing a good performance. For the quarter, the company reported earnings per share (EPS) of $0.54, surpassing analysts’ expectations of $0.41 by $0.13. The company also recorded a net margin of 47.81% and a return on equity of 13.53%. Analysts predict that Robinhood's EPS for the current fiscal year will reach 1.35.

Insider Transactions

Recent insider transactions also drew attention. Chief Technology Officer Jeffrey Tsvi Pinner sold 5,876 shares at an average price of $37.92, totaling about $222,817.92. Following this sale, his ownership in the company decreased by 33.33%, leaving him with approximately 11,752 shares valued at about $445,635.84. In another transaction, CEO Vladimir Tenev sold 750,000 shares at an average price of $39.16, amounting to $29,370,000.00. Over the last ninety days, insiders have sold a total of 2,985,127 shares valued at approximately $142,455,378, with company insiders owning around 19.95% of the total stock.

Institutional Ownership Trends

Recent fluctuations in institutional holdings indicate increasing interest in Robinhood. FMR LLC expanded its holdings by 184.8%, owning 40,237,478 shares worth around $1.5 billion after purchasing an additional 26,107,934 shares. Moreover, Newlands Management Operations LLC and State Street Corp have also increased their positions. Overall, approximately 93.27% of Robinhood's stock is owned by hedge funds and institutional investors.

About Robinhood Markets

Robinhood Markets, Inc. operates a financial services platform in the U.S. that allows users to invest in various assets such as stocks, ETFs, options, cryptocurrencies, and more. The company is noted for its innovative offerings, including fractional trading and instant withdrawals.

Conclusion

In summary, Robinhood Markets has seen significant price fluctuations and offers various investment opportunities through its platform. Analysts maintain a generally positive outlook despite recent stock price dropping, highlighting potential future growth for the company.

Robinhood, Stocks, Analysts