Robinhood Markets (NASDAQ:HOOD) Trading Down 3.4% After Earnings Miss

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price fell 3.4% during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $46.18 and last traded at $47.70. 14,508,345 shares traded hands during mid-day trading, a decline of 42% from the average session volume of 25,018,928 shares. The stock had previously closed at $49.37.

The company reported $0.37 EPS for the quarter, missing analysts’ consensus estimates of $0.41 by ($0.04). Robinhood Markets had a return on equity of 13.53% and a net margin of 47.81%. Robinhood Markets’s revenue was up 50.0% on a year-over-year basis. During the same period last year, the firm posted $0.18 EPS.

Analyst Upgrades and Downgrades

HOOD has been the topic of several recent analyst reports. Morgan Stanley cut Robinhood Markets from an “overweight” rating to an “equal weight” rating and set a $40.00 target price on the stock. in a research report on Tuesday, April 8th. Cantor Fitzgerald started coverage on Robinhood Markets in a report on Thursday, March 6th. They issued an “overweight” rating and a $69.00 price target for the company. Piper Sandler boosted their price target on Robinhood Markets from $54.00 to $75.00 and gave the stock an “overweight” rating in a research report on Thursday, February 13th. Citigroup cut their target price on Robinhood Markets from $60.00 to $50.00 and set a “neutral” rating on the stock in a research report on Wednesday, April 2nd. Finally, Needham & Company LLC reduced their price target on shares of Robinhood Markets from $70.00 to $62.00 and set a “buy” rating on the stock in a research report on Friday, March 28th. Six analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $53.88.

Insider Buying and Selling

In related news, insider Daniel Martin Gallagher, Jr. sold 50,000 shares of the business’s stock in a transaction that occurred on Tuesday, February 18th. The shares were sold at an average price of $60.77, for a total value of $3,038,500.00. Following the completion of the transaction, the insider now owns 706,642 shares in the company, valued at $42,942,634.34. The trade was a 6.61 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Baiju Bhatt sold 94,156 shares of the firm’s stock in a transaction dated Monday, April 28th. The stock was sold at an average price of $50.67, for a total value of $4,770,884.52. Following the transaction, the director now owns 7,863 shares in the company, valued at approximately $398,418.21. This trade represents a 92.29 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 2,334,593 shares of company stock valued at $114,815,021 over the last three months. 19.95% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Robinhood Markets

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in HOOD. FMR LLC raised its position in Robinhood Markets by 184.8% in the 4th quarter. FMR LLC now owns 40,237,478 shares of the company’s stock valued at $1,499,248,000 after buying an additional 26,107,934 shares during the last quarter. Norges Bank acquired a new position in shares of Robinhood Markets during the 4th quarter worth approximately $329,598,000. GQG Partners LLC acquired a new position in shares of Robinhood Markets during the 4th quarter worth approximately $302,325,000. Artisan Partners Limited Partnership bought a new stake in Robinhood Markets in the 4th quarter valued at $152,949,000. Finally, Price T Rowe Associates Inc. MD boosted its stake in Robinhood Markets by 335.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,185,225 shares of the company’s stock valued at $193,202,000 after purchasing an additional 3,994,745 shares during the period. Institutional investors own 93.27% of the company’s stock.

Robinhood Markets Price Performance

The company has a market cap of $43.48 billion, a P/E ratio of 31.28, a PEG ratio of 1.05 and a beta of 2.17. The stock has a 50-day moving average of $43.10 and a 200 day moving average of $41.27.

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.