Robinhood Markets (NASDAQ:HOOD) Shares Gap Down – Here’s Why

Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $44.08, but opened at $41.86. Robinhood Markets shares last traded at $42.24, with a volume of 12,329,136 shares traded.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on HOOD shares. Citigroup reduced their target price on shares of Robinhood Markets from $60.00 to $50.00 and set a “neutral” rating for the company in a research note on Wednesday, April 2nd. Cantor Fitzgerald began coverage on Robinhood Markets in a research note on Thursday, March 6th. They set an “overweight” rating and a $69.00 price target for the company. JMP Securities reduced their target price on Robinhood Markets from $77.00 to $70.00 and set a “market outperform” rating for the company in a report on Tuesday, April 8th. Keefe, Bruyette & Woods reiterated a “market perform” rating and set a $60.00 price target on shares of Robinhood Markets in a report on Thursday, March 27th. Finally, Compass Point assumed coverage on shares of Robinhood Markets in a report on Wednesday, March 19th. They set a “buy” rating and a $61.00 price objective for the company. Six investment analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $55.06.

Robinhood Markets Trading Down 6.2 %

The company has a fifty day simple moving average of $46.06 and a two-hundred day simple moving average of $39.79. The stock has a market capitalization of $36.60 billion, a P/E ratio of 26.33, a PEG ratio of 1.05 and a beta of 2.17.

Robinhood Markets (NASDAQ:HOOD) last released its earnings results on Wednesday, February 12th. The company reported $0.54 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.13. Robinhood Markets had a return on equity of 13.53% and a net margin of 47.81%. As a group, analysts forecast that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Vladimir Tenev sold 500,000 shares of the business’s stock in a transaction on Wednesday, January 22nd. The shares were sold at an average price of $50.77, for a total transaction of $25,385,000.00. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Baiju Bhatt sold 522,180 shares of the company’s stock in a transaction that occurred on Thursday, February 13th. The shares were sold at an average price of $62.70, for a total value of $32,740,686.00. Following the completion of the sale, the director now owns 5,042 shares in the company, valued at $316,133.40. This represents a 99.04 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 2,561,121 shares of company stock worth $128,692,730. Corporate insiders own 19.95% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. IFP Advisors Inc grew its stake in Robinhood Markets by 601.1% during the fourth quarter. IFP Advisors Inc now owns 4,396 shares of the company’s stock worth $164,000 after buying an additional 3,769 shares in the last quarter. Everence Capital Management Inc. bought a new position in shares of Robinhood Markets during the fourth quarter valued at $634,000. Charles Schwab Investment Management Inc. increased its stake in shares of Robinhood Markets by 3.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 4,719,732 shares of the company’s stock valued at $175,857,000 after buying an additional 138,267 shares during the period. Atomi Financial Group Inc. lifted its position in shares of Robinhood Markets by 20.7% in the 4th quarter. Atomi Financial Group Inc. now owns 540,910 shares of the company’s stock worth $20,154,000 after purchasing an additional 92,613 shares during the period. Finally, Requisite Capital Management LLC acquired a new stake in shares of Robinhood Markets during the fourth quarter worth $266,000. 93.27% of the stock is owned by institutional investors and hedge funds.

About Robinhood Markets

Robinhood Markets, Inc operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The company offers fractional trading, recurring investments, fully-paid securities lending, access to investing on margin, cash sweep, instant withdrawals, retirement program, around-the-clock trading, and initial public offerings participation services.