It’s been a series of highs and lows for Robinhood’s (HOOD) stock this year. Shares of the investing platform have been declining over the past month.
The stock recently closed at a new low of $19.13 per share. That’s roughly half of its July IPO price of $38, and 72% lower than its all-time closing high of $70.39 in early August.
“There’s been a very significant decline in anything that’s high multiple, no earnings,” Autonomous Research analyst Christian Bolu told Yahoo Finance.
Insiders selling shares in recent months has also been “a big technical factor which has added pressure,” according to Bolu, who has an Outperform rating and $45 price target on the stock.
“When you put those things together, you’re seeing a pretty dramatic decline in the share price,” he added.
Days after its bumpy IPO debut, the stocked soared to reach an all-time intraday high of $85 in a retail-led rally.
But over the past month, HOOD, along with GameStop (GME) and other so-called meme stocks have been declining amid increased volatility and lower appetites for risky assets.
“The meme phenomena that really helped Robinhood … there’s an expectation— that’s now behind us,” said Bolu.
While Robinhood is not considered a meme stock by many retail traders, it has been a key player in the retail trading boom involving “meme” stocks. In March CEO Vlad Tenev gave testimony before lawmakers about the buying frenzy surrounding GameStop and other heavily shorted companies. Tenev denied helping the hedge funds that had shorted shares of the video game retailer. That accusation was levied at the CEO by angry customers after Robinhood temporarily banned buying the stock on Jan. 28.
Crypto trades
Cryptocurrencies have become an increasingly important feature for Robinhood this year.
The company’s second quarter results were buoyed by a spike in crypto trades, with strong activity involving Doge (DOGE-USD) coin. However, third quarter revenue missed estimates as crypto trading plunged compared to the prior three-month period.
Robinhood is working on the rollout of its crypto wallet, for which it has amassed more than one million sign-ups. The trading app recently announced the acquisition of Cove Markets, a cross-exchange trading platform.
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