Robinhood Soars With Insider Sales on Hold Until SEC Clearance
(Bloomberg) -- Robinhood Markets Inc.’s wild week took another turn on Friday morning when it said that some early investors who filed to sell millions of shares won’t be able to do so until they get clearance from the U.S. Securities and Exchange Commission.
Shares of the company climbed as much as 17% at the open in New York before parting some of the gains to trade at $50.33 in late morining in New York. The trading platform said no sales can be made off of the Thursday filing until an SEC staff review period ends, which it doesn’t expect until after the company reports quarterly results on Aug. 18.
The Menlo Park, California-based company has seen wild swings this week as retail investors followed larger investors like Cathie Wood’s flagship ARK Innovation exchange-traded fund to snap up shares. Robinhood’s four-day rally through Wednesday added $30.2 billion in value before the shares were hit on Thursday.
The stock was hammered on Thursday after some early backers filed to sell nearly 100 million of their Class A common shares.
Robinhood was the most actively traded company with a market value above $500 million, data compiled by Bloomberg show, with more than 11 million shares changing hands. It has also been the most traded company on Fidelity’s platform for the majority of the week with buy orders outpacing those for retail favorites like AMC Entertainment Holdings Inc. and Moderna Inc.
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