Robinhood Markets (NASDAQ:HOOD) Shares Gap Down on Analyst Downgrade

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) gapped down prior to trading on Wednesday after Truist Financial lowered their price target on the stock from $130.00 to $120.00. The stock had previously closed at $85.60, but opened at $77.88. Truist Financial currently has a buy rating on the stock. Robinhood Markets shares last traded at $75.2760, with a volume of 24,882,510 shares trading hands.

A number of other research analysts also recently issued reports on the company. Zacks Research downgraded Robinhood Markets from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 6th. Barclays decreased their target price on Robinhood Markets from $159.00 to $124.00 and set an “overweight” rating for the company in a research report on Wednesday. Morgan Stanley upped their target price on shares of Robinhood Markets from $146.00 to $147.00 and gave the company an “equal weight” rating in a research note on Monday, December 22nd. Citizens Jmp reiterated a “market outperform” rating and issued a $180.00 price target on shares of Robinhood Markets in a research note on Wednesday. Finally, Compass Point reissued a “buy” rating on shares of Robinhood Markets in a report on Wednesday. Eighteen research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Robinhood Markets has an average rating of “Moderate Buy” and an average price target of $126.95.

Insider Buying and Selling at Robinhood Markets

In other news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $87.07, for a total value of $870,700.00. Following the transaction, the insider owned 393,612 shares in the company, valued at $34,271,796.84. This represents a 2.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Vladimir Tenev sold 375,000 shares of the business’s stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $121.63, for a total transaction of $45,611,250.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,537,615 shares of company stock worth $182,272,702 over the last 90 days. 14.47% of the stock is owned by company insiders.

Key Stories Impacting Robinhood Markets

Here are the key news stories impacting Robinhood Markets this week:

• Positive Sentiment: Q4 EPS beat and improving profitability — HOOD reported $0.66 EPS (above estimates) and showed stronger full‑year margins and deposit growth, supporting a longer‑term earnings thesis. Earnings Call Transcript
• Positive Sentiment: Institutional buying from ARK/ Cathie Wood signals conviction — Ark Invest added a multi‑million dollar stake during recent weakness, providing a potential buyer-of-the-dip catalyst. Cathie Wood Sees Opportunity
• Neutral Sentiment: Management pushing prediction markets as the next growth engine — CEO commentary frames prediction markets and product velocity as strategic priorities; this is longer‑term and may take quarters to monetize. CEO Prediction Markets Comments
• Neutral Sentiment: Company outlines a path to large platform assets and international expansion — product launches and asset growth targets (e.g., $1T ambition) are positive but execution‑dependent. Path to $1T in Platform Assets
• Negative Sentiment: Revenue missed estimates as crypto revenue collapsed ~38% YoY — the revenue shortfall was the main immediate catalyst for the selloff, underscoring HOOD’s sensitivity to crypto volumes. Crypto Revenue Collapse
• Negative Sentiment: Stock trading closely with bitcoin amplifies volatility — pieces note HOOD is moving almost in lockstep with crypto selloffs despite crypto being a minority of revenue. That correlation increases downside when crypto falls. HOOD vs Bitcoin Correlation
• Negative Sentiment: Analysts trimmed price targets after the print (multiple firms lowered PTs though many kept buy/overweight ratings), adding near‑term selling pressure despite longer‑term bullish cases. Analyst Price‑Target Moves (Benzinga roundup)

Hedge Funds Weigh In On Robinhood Markets

Institutional investors have recently bought and sold shares of the stock. Hantz Financial Services Inc. increased its position in Robinhood Markets by 120.3% in the second quarter. Hantz Financial Services Inc. now owns 271 shares of the company’s stock worth $25,000 after buying an additional 148 shares in the last quarter. Valley National Advisers Inc. grew its stake in shares of Robinhood Markets by 113.6% during the 3rd quarter. Valley National Advisers Inc. now owns 188 shares of the company’s stock valued at $26,000 after acquiring an additional 100 shares during the period. Sound Income Strategies LLC increased its holdings in Robinhood Markets by 152.6% in the 4th quarter. Sound Income Strategies LLC now owns 240 shares of the company’s stock worth $26,000 after acquiring an additional 145 shares in the last quarter. CYBER HORNET ETFs LLC increased its holdings in Robinhood Markets by 527.8% in the 4th quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company’s stock worth $26,000 after acquiring an additional 190 shares in the last quarter. Finally, Golden State Wealth Management LLC raised its stake in Robinhood Markets by 107.6% during the 3rd quarter. Golden State Wealth Management LLC now owns 191 shares of the company’s stock worth $27,000 after acquiring an additional 99 shares during the period. 93.27% of the stock is owned by institutional investors.

Robinhood Markets Stock Down 8.8%

The firm has a market cap of $63.95 billion, a PE ratio of 34.52, a P/E/G ratio of 1.21 and a beta of 2.43. The firm’s fifty day simple moving average is $110.01 and its two-hundred day simple moving average is $118.35.

Robinhood Markets (NASDAQ:HOOD) last announced its quarterly earnings data on Tuesday, February 10th. The company reported $0.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.63 by $0.03. Robinhood Markets had a net margin of 42.10% and a return on equity of 22.32%. The firm had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.32 billion. During the same period in the prior year, the company posted $1.01 earnings per share. The company’s revenue for the quarter was up 26.5% compared to the same quarter last year. As a group, analysts anticipate that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

About Robinhood Markets

Robinhood Markets, Inc (NASDAQ: HOOD) is a U.S.-based financial services company best known for its mobile-first brokerage platform that aims to “democratize finance for all.” Founded in 2013 by Vladimir Tenev and Baiju Bhatt and headquartered in Menlo Park, California, the company built early traction by offering commission-free trading and a simplified user experience that attracted a large base of retail investors.

Robinhood’s core products and services include a mobile app and web platform for trading U.S.