HOOD sinks 8% to a record low on heavy volume as investing app IPO lockup expire
$Robinhood(HOOD.US$ sank some 8% Wednesday to its lowest level since going public four months ago, falling on heavy volume as the popular investing app’s IPO lockup fully expired.
HOOD dropped as much as 7.9% to a $23.89 intraday record low before recovering slightly to close at $23.93, shedding 7.8% on the session to reach its worst finish to date.
The stock fell on heavy volume of 32.9M shares − more than 3x HOOD’s 9.7M daily average.
Shares were apparently tanking due to the final and most significant in a series of lockup expirations that followed the company’s IPO. Some 569.7M shares bought at IPO by insiders and key investors like $Salesforce(CRM.US$ became eligible for sale for the first time Wednesday.
HOOD has been falling for the past four sessions, apparently in anticipation of the lockup’s expiration. All told, the stock has lost some 19.6% since last Wednesday’s close at $27.78.
Robinhood operates a popular investing app that has introduced many Millennials and other new investors to the stock market. The company staged what had been an eagerly anticipated initial public offering in July.
However, the IPO priced at the bottom of its expected $38-$42/share range, and then HOOD tanked instead of rising in its first post-IPO session. So far, the stock has fallen 37% from HOOD’s IPO price.
Shares sank Wednesday despite word that Robinhood had introduced a new feature making it easy for customers to transfer assets from other brokerages into their HOOD accounts.
The stock also failed to get a boost from news that Cathie Wood's $ARK Innovation ETF(ARKK.US$ had snapped up some 837,000 HOOD shares on Tuesday.
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Revana : The more it drips the more I buy
Dixonnn : So i bought at $36 ..fairly new to this investing thing. Can you guys point me in the direction where I can study and learn more about investing
My expertise is more so in real estate investing..just took a bath with this buy(hopefully its only short-term).
Abdul Dickson : All the bubble boys are on their way down. Wood’s forest is on fire.
dreamstocker : Long HOOD
Johnny Thunders : Let’s go Cathy!