Robinhood Markets (NASDAQ:HOOD) Trading Down 2.7% – Should You Sell?

Robinhood Markets, Inc. (NASDAQ:HOOD) was down 2.7% on Friday . The company traded as low as $108.81 and last traded at $111.97. 25,715,350 shares changed hands during mid-day trading, a decline of 15% from the average daily volume of 30,180,734 shares. The stock had previously closed at $115.11.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: Morgan Stanley raised its price target on Robinhood Markets (HOOD) to $124 from $95, which signals improved upside expectations even though the firm kept an equal-weight rating.
• Positive Sentiment: Barclays also turned more bullish earlier in the week, lifting its target to $122 and maintaining an overweight rating, reinforcing analyst confidence in HOOD’s growth outlook.
• Positive Sentiment: Robinhood Chain is drawing major attention after quickly climbing into the top tier of blockchains by 24-hour DEX volume, with articles highlighting surging activity, meme-coin trading, and broader crypto engagement that could boost Robinhood’s platform relevance. Article: HOOD Stock Drops Despite Price Target Hike — Robinhood Chain Beats ARB, HYPE, NEAR In DEX Trading
• Positive Sentiment: CEO Vlad Tenev’s comments about expanding stock ownership and broadening access to investing keep the long-term growth story in focus, especially as Robinhood adds new products and markets. Article: Robinhood CEO Vlad Tenev Says ‘Only 62% of Americans’ Exposed to Stocks: ‘I’d Like to Get That to 100’
• Neutral Sentiment: Several reports note Robinhood remains heavily followed by investors and analysts, but these are more confirmation of elevated attention than new fundamental information.
• Negative Sentiment: Recent insider selling, including sales by a Robinhood director and ongoing ARK Invest trimming of HOOD shares, may be weighing on sentiment even though some trades were pre-planned under Rule 10b5-1.

Analyst Ratings Changes

A number of research analysts have commented on the stock. Barclays raised their price target on shares of Robinhood Markets from $82.00 to $122.00 and gave the stock an “overweight” rating in a research note on Thursday. Jefferies Financial Group lowered their price objective on Robinhood Markets from $88.00 to $84.00 and set a “buy” rating on the stock in a research note on Monday, April 6th. Truist Financial dropped their target price on Robinhood Markets from $120.00 to $100.00 and set a “buy” rating for the company in a report on Monday, April 13th. Morgan Stanley raised their target price on Robinhood Markets from $95.00 to $124.00 and gave the stock an “equal weight” rating in a research report on Friday. Finally, Zacks Research raised Robinhood Markets from a “strong sell” rating to a “hold” rating in a research note on Monday, June 8th. Twenty-one analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Robinhood Markets currently has a consensus rating of “Moderate Buy” and an average price target of $118.00.

Robinhood Markets Price Performance

The stock has a market capitalization of $100.83 billion, a P/E ratio of 54.09, a PEG ratio of 2.50 and a beta of 2.33. The company’s 50 day simple moving average is $91.01 and its two-hundred day simple moving average is $89.48.

Robinhood Markets (NASDAQ:HOOD) last posted its earnings results on Tuesday, April 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). The firm had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.14 billion. Robinhood Markets had a net margin of 41.12% and a return on equity of 21.39%. The business’s revenue was up 15.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.37 EPS. On average, research analysts anticipate that Robinhood Markets, Inc. will post 1.88 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Vladimir Tenev sold 375,000 shares of the stock in a transaction on Monday, July 6th. The stock was sold at an average price of $116.17, for a total transaction of $43,563,750.00. Following the sale, the chief executive officer owned 375,000 shares in the company, valued at approximately $43,563,750. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven M. Quirk sold 19,377 shares of the firm’s stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $119.96, for a total value of $2,324,464.92. Following the completion of the sale, the insider owned 62,612 shares of the company’s stock, valued at approximately $7,510,935.52. This trade represents a 23.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders acquired 680,000 shares of company stock worth $55,306,560 and sold 659,112 shares worth $68,741,158. Company insiders own 14.47% of the company’s stock.

Institutional Investors Weigh In On Robinhood Markets

A number of hedge funds have recently added to or reduced their stakes in HOOD. Truist Financial Corp raised its holdings in Robinhood Markets by 88.9% during the fourth 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 in the last quarter. PNC Financial Services Group Inc. grew its stake in 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 increased its position in shares of Robinhood Markets by 26.3% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 365,551 shares of the company’s stock worth $44,477,000 after purchasing an additional 76,075 shares during the last quarter. Nomura Asset Management Co. Ltd. raised its stake in shares of Robinhood Markets by 196.3% during the 4th 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 in the last quarter. Finally, Capital Wealth Planning LLC boosted its holdings in shares of Robinhood Markets by 238.5% in the 3rd quarter. Capital Wealth Planning LLC now owns 48,438 shares of the company’s stock valued at $6,935,000 after buying an additional 34,129 shares during the last quarter. 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.