The Securities and Exchange Commission is allowing some early investors to sell a portion of their holdings in Robinhood Markets Inc.
The move applies to certain shares held by investors who infused additional funds into the company at the end of January to address the liquidity crunch in mem stocks such as Gamestop Corp. The SEC’s approval took effect at 4:30 p.m. Wednesday in New York. Robinhood made a request last week, according to a filing.
JPMorgan Chase & Co. analysts Kenneth Worthington and Samantha Trent said in a Sept. “Significant amounts of Robinhood shares will be unlocked in the coming months, a typical course following the IPO, but a course we can potentially take as Robinhood.” Let’s look at the pressure on the share price. 29 Note to customers.
Investors will not be allowed to sell any of the affected shares before the company announces its third quarter results on October 26. They also agreed to hold half of those shares for 28 days after receiving the SEC’s blessing, Robinhood said in a statement Friday.
Shares of the Menlo Park, Calif.-based brokerage rose 1.2% to $41 at 10:40 a.m. in New York, marking their gain of 7.9% since the firm’s July initial public offering.
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