Robinhood Markets (NASDAQ:HOOD) Shares Down 4% – Should You Sell?

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price dropped 4% during trading on Tuesday . The stock traded as low as $112.53 and last traded at $112.90. Approximately 21,684,292 shares were traded during trading, a decline of 29% from the average daily volume of 30,381,330 shares. The stock had previously closed at $117.55.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: China Renaissance initiated coverage on Robinhood with a Buy rating, adding to the bullish analyst backdrop. Robinhood (HOOD) Stock Surges 4.6% on Multiple Bullish Catalysts This Week
• Positive Sentiment: Investor enthusiasm is being fueled by Robinhood’s expansion into AI-powered trading, tokenization, DeFi lending, and international markets, which could open new revenue streams. HOOD Bets on DeFi, Tokenization & AI Trading in Global Expansion Push
• Positive Sentiment: Robinhood’s business momentum appears to be improving ahead of its next earnings report, with analysts saying growth in banking and prediction-market initiatives could support estimate revisions if results beat expectations. Why Robinhood’s Business Momentum May Be Outrunning Earnings Estimates

Analysts Set New Price Targets

Several analysts have recently weighed in on the company. Mizuho upped their price objective on Robinhood Markets from $115.00 to $130.00 and gave the company an “outperform” rating in a report on Thursday, July 2nd. Morgan Stanley dropped their price target on shares of 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. KeyCorp restated an “overweight” rating and set a $100.00 price objective on shares of Robinhood Markets in a research report on Monday, June 1st. Jefferies Financial Group lowered their price objective on shares of Robinhood Markets from $88.00 to $84.00 and set a “buy” rating on the stock in a research note on Monday, April 6th. Finally, Cantor Fitzgerald reiterated an “overweight” rating and issued a $110.00 target price on shares of Robinhood Markets in a report on Tuesday, June 9th. Twenty-one research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $115.00.

Robinhood Markets Trading Down 4.0%

The firm has a market cap of $101.67 billion, a price-to-earnings ratio of 54.54, a price-to-earnings-growth ratio of 2.53 and a beta of 2.33. The stock has a 50-day moving average of $88.38 and a two-hundred day moving average of $89.42.

Robinhood Markets (NASDAQ:HOOD) last posted its quarterly earnings data on Tuesday, April 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.01). The company 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%.Robinhood Markets’s quarterly revenue was up 15.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.37 EPS. Sell-side analysts expect that Robinhood Markets, Inc. will post 1.81 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Meyer Malka acquired 250,000 shares of the company’s stock in a transaction on Friday, June 5th. The shares were purchased at an average price of $80.74 per share, for a total transaction of $20,185,000.00. Following the purchase, the director owned 3,924,427 shares in the company, valued at $316,858,235.98. This represents a 6.80% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Baiju Bhatt sold 67,422 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $75.38, for a total transaction of $5,082,270.36. 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 purchased 680,000 shares of company stock worth $55,306,560 and sold 242,649 shares worth $20,250,598. 19.95% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of HOOD. Truist Financial Corp lifted its position in shares of Robinhood Markets by 88.9% in the 4th quarter. Truist Financial Corp now owns 145,489 shares of the company’s stock worth $16,455,000 after acquiring an additional 68,458 shares during the period. PNC Financial Services Group Inc. raised its stake in shares of Robinhood Markets by 86.2% in the fourth quarter. PNC Financial Services Group Inc. now owns 100,849 shares of the company’s stock valued at $11,406,000 after purchasing an additional 46,688 shares in the last quarter. Wealth Enhancement Advisory Services LLC raised its stake in shares of Robinhood Markets by 26.3% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 365,551 shares of the company’s stock valued at $44,477,000 after purchasing an additional 76,075 shares in the last quarter. Nomura Asset Management Co. Ltd. lifted its position in Robinhood Markets by 196.3% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 722,857 shares of the company’s stock worth $81,755,000 after purchasing an additional 478,919 shares during the period. Finally, Capital Wealth Planning LLC lifted its position in Robinhood Markets by 238.5% in the third quarter. Capital Wealth Planning LLC now owns 48,438 shares of the company’s stock worth $6,935,000 after purchasing an additional 34,129 shares during the period. Hedge funds and other institutional investors 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.