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

Robinhood Markets, Inc. (NASDAQ:HOOD) experienced a gap down in share price as trading began on Tuesday, opening at $40.80 after a previous close of $42.02. The stock further declined and last traded at $39.68, with a total volume of 5,828,533 shares exchanged.

Recent Analyst Ratings

Several analysts have made recent adjustments to their ratings and price targets for Robinhood Markets. Barclays raised its price target significantly from $54.00 to $76.00 and assigned the stock an "overweight" rating. Similarly, Piper Sandler also increased its price target from $54.00 to $75.00, maintaining an "overweight" rating. Sanford C. Bernstein adjusted its target from $30.00 to $51.00 with an "outperform" rating. Needham & Company LLC set a new price objective of $70.00, raising it from $52.00, while KeyCorp increased its target from $57.00 to $75.00, categorizing the stock as "overweight." Overall, out of analyst ratings, five classify the stock as a hold, while twelve suggest a buy. According to MarketBeat.com, Robinhood Markets has an average rating of "Moderate Buy" with an average target price of $61.31.

Price Performance Analysis

The stock's fifty-day simple moving average stands at $48.87, while its two-hundred-day moving average is at $36.76. Robinhood has a market capitalization of $35.05 billion, a P/E ratio of 25.15, and a P/E/G ratio of 1.05. Additionally, the stock comes with a beta of 2.14, indicating higher volatility compared to the market.

Latest Earnings Report

On February 12th, Robinhood Markets reported quarterly earnings, revealing an earnings per share (EPS) of $0.54, surpassing the consensus estimate of $0.41 by $0.13. The company enjoyed a net margin of 47.81% and a return on equity of 13.53%. Analysts are predicting that Robinhood will achieve an EPS of 1.35 for the current fiscal year.

Insider Activities

In terms of insider transactions, Chief Technology Officer Jeffrey Tsvi Pinner sold 5,876 shares at an average price of $37.92, totaling approximately $222,817.92. After this transaction, Pinner holds 11,752 shares valued at around $445,635.84, representing a decline of 33.33% in his holdings. 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 past ninety days, insiders have sold a total of 2,985,127 shares valued at $142,455,378, with insiders owning 19.95% of the total company stock.

Institutional Investor Movements

Institutional investors have also been active with their positions in Robinhood Markets. FMR LLC significantly boosted its holdings by 184.8% in the fourth quarter, now owning 40,237,478 shares valued at about $1.5 billion after acquiring an additional 26,107,934 shares. Newlands Management Operations LLC increased its stake by 1.1%, now holding 24,158,860 shares worth $900 million. State Street Corp added 8.7% to its holdings, and Geode Capital Management and Renaissance Technologies also grew their positions in the stock during the same period. Overall, around 93.27% of Robinhood's shares are owned by hedge funds and other institutional investors.

About Robinhood Markets

Robinhood Markets, Inc. operates a financial services platform in the United States. The platform allows customers to invest in a variety of financial instruments, including stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies. Additionally, it offers services like fractional trading, margin investing, cash sweep, and more.

Conclusion

As Robinhood Markets navigates through recent market conditions and company developments, it remains crucial for investors to monitor both analyst sentiments and insider activities.

Robinhood, Stocks, Investing