Chief Marketing Officer Christina Smedley just sold 100% of her Robinhood stock. Do you know what the responsibilities of a CMO are? To generate revenue by increasing sales through marketing. You don’t sell your entire stock unless you don’t believe in that company anymore.
But that’s not all, there’s a list of executives who sold their stock too. When did all of this happen? All within the first week of Robinhood’s IPO, 8/4 to be exact.
Welcome to Franknez.com – today’s investing news, Robinhood stock. Things just got interesting.
Lets get started!
Shareholders Sell Robinhood Stock
Robinhood stock tanked on Thursday, 8/5 after several executives filed to sell their stock the previous day. The stock had risen past $70 and traded around $80 after hours.
Robinhood Stock closed at $50.97 per share.
The companies shareholders followed shortly after Vlad Tenev, the CEO of Robinhood had sold approximately 7.2 millions shares on IPO day. The IPO flip made him a whopping $275 million dollars.
Robinhood warned that investors who sold or ‘flipped’ their IPO shares within 30 days would be restricted from participating in future IPO deals, REUTERS. It seems like executives sought there chance while HOOD stock jumped up during its momentum run.
But will Robinhood be able to maintain its momentum after this pump and dump? Let me know in the comment section below.
CFO & CPO Sell HOOD Stock
That’s right, Robinhood’s CFO Jason Warnick sold 25% of his stake in HOOD stock. Jason spent nearly 20 years working for Amazon as VP of Finance and joined Robinhood back in 2018.
And we have Chief Product Officer, Aparna Chennapragada who sold 20% of her stake in the tech company. This ex. Google executive was also a director on the board of Capital One. The primary goal of a CPO is to lead and create products that deliver both value to their customers and business.
I had actually seen this information straight from Andrei Jikh on Instagram stories where he posted a screen shot saying, “Wow, here are Robinhood’s executives selling shares.. This doesn’t inspire confidence.”
If you’re not familiar with Andrei, he creates finance videos on YouTube and has been featured in Graham Stephen videos before as well.
Andrei is a Robinhood user but has not yet invested in Robinhood stock. In a recent video, he mentions he’s happy he did not invest in HOOD stock on IPO day but that he is going to keep an eye on the stock for now and see how it performs.
Analysts Stay Cautious
Some analysts are staying cautious. “We cannot in good faith recommend investors get involved in HOOD on either the long or short side,” Wolfe Research analyst Steve Chubak wrote in a note, initiating coverage on the Robinhood with a hold-equivalent rating and a share price target of $45, via. Aljazeera.
So, is Robinhood stock worth the buy? First, ask yourself if these selloffs are something a confident company would do. Second, do you trust them?
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Read: Why new retail investors should avoid investing with Robinhood