Robinhood Markets (NASDAQ:HOOD) Shares Gap Down - Should You Sell?

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $42.02, but opened at $40.80. Robinhood Markets shares last traded at $39.68, with a volume of 5,828,533 shares changing hands.

Analyst Upgrades and Downgrades

HOOD has been the subject of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft lowered their price objective on Robinhood Markets from $75.00 to $61.00 and set a "buy" rating for the company in a research report on Wednesday, March 12th. Morgan Stanley lifted their price objective on Robinhood Markets from $64.00 to $90.00 and gave the company an "overweight" rating in a research report on Thursday, February 13th. Needham & Company LLC lifted their price objective on Robinhood Markets from $52.00 to $70.00 and gave the company a "buy" rating in a research report on Thursday, February 13th. Mizuho lifted their target price on Robinhood Markets from $60.00 to $65.00 and gave the company an "outperform" rating in a report on Friday, February 7th. Finally, KeyCorp lifted their target price on Robinhood Markets from $57.00 to $75.00 and gave the company an "overweight" rating in a report on Thursday, February 13th. Five research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $61.31.

Robinhood Markets Stock Down 4.6 %

The stock has a 50 day simple moving average of $48.86 and a 200 day simple moving average of $36.90. The company has a market cap of $35.51 billion, a price-to-earnings ratio of 25.54, a PEG ratio of 1.05 and a beta of 2.14.

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Robinhood Markets (NASDAQ:HOOD - Get Free Report) last released its quarterly earnings results on Wednesday, February 12th. The company reported $0.54 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, equities research analysts expect that Robinhood Markets, Inc. will post 1.35 EPS for the current fiscal year.

Insider Activity at Robinhood Markets

In other news, CEO Vladimir Tenev sold 750,000 shares of the company's stock in a transaction that occurred on Thursday, January 2nd. The stock was sold at an average price of $39.16, for a total transaction of $29,370,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Jeffrey Tsvi Pinner sold 5,853 shares of the company's stock in a transaction that occurred on Wednesday, March 5th. The shares were sold at an average price of $46.81, for a total value of $273,978.93. Following the transaction, the chief technology officer now directly owns 17,559 shares of the company's stock, valued at $821,936.79. This trade represents a 25.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 2,985,127 shares of company stock valued at $142,455,378 over the last three months. 19.95% of the stock is owned by insiders.

Hedge Funds Weigh In On Robinhood Markets

Institutional investors have recently made changes to their positions in the stock. FMR LLC grew its holdings in Robinhood Markets by 184.8% in the 4th quarter. FMR LLC now owns 40,237,478 shares of the company's stock worth $1,499,248,000 after buying an additional 26,107,934 shares in the last quarter. Norges Bank bought a new position in Robinhood Markets in the 4th quarter worth approximately $329,598,000. GQG Partners LLC bought a new position in Robinhood Markets in the 4th quarter worth approximately $302,325,000. Artisan Partners Limited Partnership bought a new position in Robinhood Markets in the 4th quarter worth approximately $152,949,000. Finally, Price T Rowe Associates Inc. MD grew its holdings 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 worth $193,202,000 after buying an additional 3,994,745 shares in the last quarter. 93.27% of the stock is owned by institutional investors.

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.