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

Robinhood Markets, Inc. (NASDAQ:HOOD) experienced a gap down when trading began on Tuesday. The stock, which had previously closed at $42.02, opened at $40.80. As of the last recorded trade, Robinhood Markets shares were priced at $39.68, with a significant trading volume of 5,828,533 shares.

Recent Analyst Ratings

In the financial community, several analysts have recently commented on Robinhood’s stock. In a report dated February 13th, Barclays raised its price target for Robinhood from $54.00 to $76.00 and issued an "overweight" rating. Similarly, Piper Sandler increased their target from $54.00 to $75.00 with an "overweight" rating as well. Also, on November 20th, Sanford C. Bernstein revised their target up from $30.00 to $51.00, rating the company as "outperform." Needham & Company LLC set their price objective from $52.00 to $70.00, maintaining their "buy" recommendation. Additionally, KeyCorp raised their target from $57.00 to $75.00, also giving it an "overweight" rating. Currently, five analysts suggest a hold rating for the stock, while twelve recommend buying. The average rating among analysts is "Moderate Buy," with an average target price of $61.31.

Stock Performance Metrics

The stock's 50-day simple moving average stands at $48.87, while its 200-day simple moving average is $36.76. Robinhood Markets has a market capitalization of $35.05 billion, a P/E ratio of 25.15, and a P/E/G ratio of 1.05, with a beta of 2.14. Following its quarterly earnings report on February 12th, Robinhood posted earnings per share (EPS) of $0.54, surpassing the consensus estimate of $0.41 by $0.13. The company achieved a net margin of 47.81%, with a return on equity of 13.53%. Analysts are forecasting Robinhood will report an EPS of 1.35 for the current fiscal year.

Insider Activity

In recent insider transactions, CTO Jeffrey Tsvi Pinner sold 5,876 shares on December 20th at an average price of $37.92, totaling $222,817.92, which reduced his holding by 33.33%. After this sale, he retained approximately 11,752 shares valued at around $445,635.84. CEO Vladimir Tenev also made headlines by selling 750,000 shares on January 2nd for approximately $29,370,000. Furthermore, over the last ninety days, insiders sold a total of 2,985,127 shares worth $142,455,378. Company insiders collectively own 19.95% of Robinhood's stock.

Institutional Involvement

Institutional investors have been active with Robinhood’s shares, exhibiting significant trading activity. FMR LLC increased its holdings by 184.8% in the fourth quarter, acquiring an additional 26,107,934 shares to reach a total of 40,237,478 shares valued at approximately $1.5 billion. Newlands Management Operations LLC improved its position by 1.1%, owning now 24,158,860 shares worth around $900 million. State Street Corp raised their stake by 8.7%, acquiring another 1,085,679 shares to hold 13,558,321. Geode Capital Management LLC added 4.8%, bringing its total to 12,175,972 shares. Renaissance Technologies LLC grew its holdings by 34.4%, totaling 12,078,116 shares. Collectively, 93.27% of Robinhood's stock is owned by institutional investors.

About Robinhood Markets

Robinhood Markets, Inc., is a financial services platform based in the United States, allowing users to invest in various financial instruments such as stocks, ETFs, options, gold, and cryptocurrencies. Their platform includes features like fractional trading, recurring investments, margin investing, and more.

Robinhood, Stocks, Trading