Robinhood Stock (HOOD) Slips Following $3M Executive Share Sale

Stock and crypto exchange operator Robinhood (HOOD) saw its stock fall on Monday after Chief Financial Officer Jason Warnick sold 50,000 shares of HOOD. The sale took place on May 14, but the news is hitting HOOD stock today as its Securities and Exchange Commission (SEC) filing wasn’t published until after markets closed on Friday.

The Robinhood CFO sold the 50,000 shares for between $61.88 and $62.075, with the average sale price at $61.9756. This netted Warnick just over $3 million from the share sale. It also leaves him with 906,814 shares of HOOD stock still under his direct ownership.

HOOD stock dropped 4.29% in pre-market trading this morning. However, the company’s shares remain up 65.75% year-to-date. The strength of Robinhood stock likely convinced Warnick to sell the shares. Unfortunately, it appears investors have taken this as a warning sign. The CFO’s share sale could have spooked investors into believing the stock has peaked, which might have tempted some shareholders into offloading some of their investments.

Recent HOOD Stock Analyst Coverage

Several analysts updated their coverage of Robinhood stock last week. The catalyst behind that was its C$250 million acquisition of Canadian crypto exchange company WonderFi. The company expanded into Canada last year with the creation of its headquarters in the country and seeks to expand further with this deal.

One of the latest updates on HOOD stock came from Goldman Sachs analyst James Yaro. He reiterated a Buy rating for HOOD shares and increased his price target to $72 from $64, representing a possible 16.58% upside.

Is HOOD Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Robinhood is Moderate Buy, based on 14 Buy and five Hold ratings over the last three months. With that comes an average price target of $63.33, representing a potential 2.54% upside for the company’s shares.

See more HOOD stock analyst ratings