American investment firm ARK Invest has sold a significant stake in Robinhood. The sale involved nearly 1.4 million shares, equivalent to $36.4 million.

Reasons for the Stock Sale

The sale was made because Robinhood shares approached 5% of the total weight of ARK Invest's portfolio, in compliance with the 12d3-1 rule, which restricts holding more than 5% of a single issuer's securities based on the overall portfolio value.

Previous Robinhood Stock Sales

Back in March this year, ARK sold around 1.6 million Robinhood shares for approximately $31.5 million. The largest portion was sold through ARK Innovation ETF, with the rest through ARK Next Generation Internet ETF and ARK Fintech Innovation ETF.

Market Situation and Current Stock Value

At the time of the latest sale, Robinhood shares had risen by more than 100% since the beginning of the year. Currently, its price has reached $25.61, marking its highest value since November 2021. Despite the ongoing growth, the shares are still far from their all-time high of $44.

ARK Invest's sale of Robinhood shares was necessitated by regulatory compliance. This decision, amid the rising stock prices, has drawn the attention of market participants.