Robinhood Markets (NASDAQ:HOOD) Shares Gap Down After Analyst Downgrade

Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock price gapped down before the market opened on Friday after Needham & Company LLC lowered their price target on the stock from $70.00 to $62.00. The stock had previously closed at $43.99, but opened at $42.69. Needham & Company LLC currently has a buy rating on the stock. Robinhood Markets shares last traded at $40.88, with a volume of 10,994,238 shares changing hands.

A number of other equities analysts have also weighed in on the stock. The Goldman Sachs Group upgraded shares of Robinhood Markets from a “neutral” rating to a “buy” rating and upped their target price for the stock from $40.00 to $46.00 in a research report on Friday, December 6th. Keefe, Bruyette & Woods boosted their target price on shares of Robinhood Markets from $38.00 to $60.00 and gave the company a “market perform” rating in a research note on Tuesday, February 18th. JPMorgan Chase & Co. raised their price target on shares of Robinhood Markets from $39.00 to $45.00 and gave the stock a “neutral” rating in a research note on Thursday, February 13th. Raymond James began coverage on shares of Robinhood Markets in a research report on Wednesday, February 5th. They issued a “market perform” rating for the company. Finally, KeyCorp raised their target price on shares of Robinhood Markets from $57.00 to $75.00 and gave the stock an “overweight” rating in a research report on Thursday, February 13th. Five investment analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $60.82.

Insider Activity

In related news, CEO Vladimir Tenev sold 750,000 shares of Robinhood Markets stock in a transaction dated Thursday, January 2nd. The stock was sold at an average price of $39.16, for a total value of $29,370,000.00. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Baiju Bhatt sold 228,645 shares of the stock in a transaction that occurred on Friday, January 3rd. The shares were sold at an average price of $40.37, for a total value of $9,230,398.65. Following the transaction, the director now directly owns 5,042 shares of the company’s stock, valued at $203,545.54. The trade was a 97.84 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 2,955,655 shares of company stock worth $143,072,448 over the last 90 days. 19.95% of the stock is currently owned by company insiders.

Institutional Trading of Robinhood Markets

A number of hedge funds and other institutional investors have recently made changes to their positions in HOOD. Toronto Dominion Bank increased its position in shares of Robinhood Markets by 31.1% during the third quarter. Toronto Dominion Bank now owns 68,408 shares of the company’s stock valued at $1,602,000 after acquiring an additional 16,219 shares during the last quarter. IFP Advisors Inc increased its position in shares of 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 purchasing an additional 3,769 shares in the last quarter. Everence Capital Management Inc. acquired a new position in Robinhood Markets in the fourth quarter valued at $634,000. Charles Schwab Investment Management Inc. increased its stake in shares of Robinhood Markets by 3.0% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 4,719,732 shares of the company’s stock worth $175,857,000 after acquiring an additional 138,267 shares during the period. Finally, Atomi Financial Group Inc. lifted its holdings 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 valued at $20,154,000 after buying an additional 92,613 shares during the period. Institutional investors and hedge funds own 93.27% of the company’s stock.

Robinhood Markets Price Performance

The stock has a 50 day moving average of $49.29 and a two-hundred day moving average of $37.91. The stock has a market capitalization of $36.06 billion, a PE ratio of 26.01, a P/E/G ratio of 1.05 and a beta of 2.14.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings data on Wednesday, February 12th. The company reported $0.54 earnings per share (EPS) for the quarter, topping 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, research analysts predict that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Robinhood Markets Company Profile

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.