Robinhood Stock Pulls Back to Record Lows After Downgrade

The security is down more than 82% in the last 9 months

Deputy Editor
Jun 15, 2022 at 9:19 AM
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The shares of Robinhood Markets Inc (NASDAQ:HOOD) are dropping even lower this morning last seen down 2.8% to trade at $7.03 before the opening bell. Today's dip comes after Atlantic Equities downgraded HOOD to "underweight" from "neutral," and cut its price target by $10 to $5. The brokerage said it's concerned about the online trading platform's "deteriorating revenue trends," especially as customers return to pre-pandemic trends and a potential recession looms.

Nearly a year into Robinhood stock's public trading record, it's been a brutal battle on the charts. Down more than 82% in the last nine months, the shares are facing pressure from every notable short- and long-term trendline. Year-to-date, HOOD is down roughly 60%, and is set to open at its lowest level on record today. 

Circling back to analyst sentiment, this marks the second-straight session Robinhood stock received a bear note, as J.P Morgan Securities yesterday cut its price target to $7 from $11. Covering brokerages, meanwhile, were split on the equity, coming into today, with five recommending a "strong buy," versus eight at a "hold" or worse. Meanwhile, the 12-month consensus target price of $12.89 is a staggering 83.4% premium to last night's close.

Short sellers are jumping ship, with short interest down 13.8% in the most recent reporting period. The shares sold short now make up 8.1% of the stock's available float, or nearly three days' worth of pent-up buying power. 

 

 

 

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