Meyer Malka, a director at Robinhood Markets , Inc. (NASDAQ:HOOD), has reported significant stock sales according to a recent SEC filing. On November 6, 2024, Malka sold 321,218 shares of Class A Common Stock at an average price of $30.0054. The following day, another 105,875 shares were sold at an average price of $30.0031. The largest transaction occurred on November 8, 2024, when Malka sold 2,791,306 shares at an average price of $30.2464. These transactions, which were part of a pre-arranged trading plan, totaled approximately $97.24 million. Following these sales, Malka holds indirect ownership of 26,138,937 shares through various funds and entities.
In other recent news, Robinhood, the financial services company, is experiencing significant developments. The company's Q3 2024 earnings report showed a 36% year-over-year increase in revenues, reaching $637 million. The net deposits hit $10 billion for the third consecutive quarter, and customer assets under custody reached a record $152 billion.
Robinhood also launched new trading products, including Index Options, Futures, and the desktop platform Robinhood Legend, which garnered nearly 2 million customers on the waitlist for the Robinhood Gold credit card. Goldman Sachs (NYSE:GS) has updated its price target for Robinhood, increasing it to $25.00 from the previous $22.00, while maintaining a Neutral rating on the stock.
In the political arena, Dan Gallagher, Robinhood's current chief legal and compliance officer, is being considered for the chair of the Securities and Exchange Commission in the upcoming Trump administration. This is part of the transition team's ongoing deliberations, with no definitive decisions made at this stage. As these recent developments unfold, Robinhood continues to make strides in its growth trajectory.
InvestingPro Insights
Robinhood Markets, Inc. (NASDAQ:HOOD) has been experiencing significant market momentum, as evidenced by the recent stock sales by director Meyer Malka. This aligns with several key metrics and insights from InvestingPro.
According to InvestingPro data, Robinhood's stock has shown remarkable performance, with a 265.09% price total return over the past year and a 72.25% return in the last three months. The company is currently trading near its 52-week high, with its price at 99.71% of the highest point in the past year. This strong performance is reflected in the stock's current price of $29.36, which is close to the average price at which Malka sold his shares.
InvestingPro Tips highlight that Robinhood has been experiencing significant returns over various time frames, including the last week, month, and three months. This consistent upward trend suggests strong investor confidence in the company's prospects.
From a financial perspective, Robinhood's revenue growth is impressive, with a 35.74% increase in the last twelve months and a 36.4% growth in the most recent quarter. The company's gross profit margin stands at a robust 86.46%, indicating efficient cost management.
While the stock is trading at a relatively high P/E ratio of 50.55, an InvestingPro Tip suggests that this multiple is low relative to the company's near-term earnings growth potential. This could indicate that despite the recent price surge, there might still be room for further appreciation.
It's worth noting that InvestingPro offers 13 additional tips for Robinhood Markets, providing investors with a more comprehensive analysis of the company's financial health and market position. These insights can be particularly valuable given the recent insider selling activity and the stock's strong performance.
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