Robinhood Insider Sells $6.5 Million in Shares, Stock Drops

Steven Quirk, an insider at Robinhood Markets, Inc. (NASDAQ:HOOD), sold 49,942 shares of the company’s stock on December 3, 2023, generating a total of $6,549,893.30. The shares were sold at an average price of $131.15, resulting in a 47.82% decrease in Quirk’s ownership, which now stands at 54,496 shares valued at approximately $7,147,150.40. This transaction was disclosed in a filing with the Securities and Exchange Commission.

Following the sale, Robinhood’s stock opened at $131.95 on Monday, reflecting a decline of 3.7%. The company’s market capitalization is currently $118.65 billion, with a price-to-earnings ratio of 54.75 and a price-to-earnings growth ratio of 2.97. Over the past year, the stock has fluctuated between a low of $29.66 and a high of $153.86.

Recent Financial Performance and Analyst Ratings

On November 5, 2023, Robinhood posted its latest earnings results, reporting earnings per share of $0.61, surpassing the consensus estimate of $0.41 by $0.20. This marked a significant increase from the previous year’s earnings of $0.17 per share. The company generated $1.27 billion in revenue for the quarter, exceeding analyst expectations of $1.15 billion, which represents a remarkable 100% year-over-year increase. Analysts predict Robinhood will achieve earnings per share of $1.35 for the current fiscal year.

Recent comments from analysts indicate a positive outlook for the stock. Barclays raised its price target from $162.00 to $168.00 while maintaining an “overweight” rating. Bank of America also increased its target from $139.00 to $157.00 with a “buy” rating. Other firms, including JMP Securities and Cantor Fitzgerald, have similarly adjusted their price targets upward.

The overall analyst consensus on Robinhood’s stock is a “Moderate Buy,” with one analyst rating it as a Strong Buy, fourteen as Buy, seven as Hold, and one as Sell, according to data from MarketBeat.com.

Institutional Investment Trends

Institutional investors have also been active in adjusting their holdings in Robinhood. Federated Hermes Inc. increased its stake by 2.1% in the first quarter, now owning 31,024 shares valued at approximately $1,291,000. PNC Financial Services Group Inc. raised its position by an impressive 366.8%, acquiring an additional 24,664 shares to a total of 31,389 shares worth $1,306,000.

Other notable changes include Cary Street Partners Financial LLC, which purchased a new stake worth $1,849,000, and Atria Wealth Solutions Inc., increasing its investment by 11.6% with a total of 43,720 shares valued at $1,820,000. Currently, institutional investors hold 93.27% of Robinhood’s stock.

Robinhood Markets, Inc. operates a financial services platform that allows users to invest in stocks, ETFs, options, and cryptocurrencies, among other assets. The company has gained popularity for its user-friendly interface and innovative services aimed at democratizing investing.