(Seeking Alpha) Brokerage firm Robinhood Markets fell up to 7.9% to touch a record low of below $24 on heavy trading volume as its IPO lockup ended.
Robinhood’s stock attracted a volume of about 32.9 million, which is three times more than its usual daily average.
Remaining Robinhood’s shares held by key investors and insiders amounting up to 567.7 million were open for sale for the first time on Wednesday contributing to the plunge.
The share decline on Wednesday follows a series of other losses as investors awaited the expiration of the lockup.
The brokerage stock’s weakness happens despite the company introducing a feature allowing customers to move assets from other firms into their HOOD accounts. Reports that ARK Innovation ETF bought some 837,000 shares in the brokerage firm did little to boost sentiment.
Robinhood was priced at the bottom of the IPO range of $38 to 42 per share at the time of public debut. The stock is now down 37% from its IPO price.
HOOD: NASDAQ is up +0.46% on premarket.
