Robinhood Markets (NASDAQ:HOOD) Trading Down 8.8% After Analyst Downgrade

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) were down 8.8% during trading on Thursday after Wall Street Zen downgraded the stock from a hold rating to a sell rating. The company traded as low as $70.43 and last traded at $71.12. Approximately 56,906,528 shares changed hands during mid-day trading, an increase of 82% from the average daily volume of 31,314,533 shares. The stock had previously closed at $77.97.

Several other equities research analysts have also weighed in on HOOD. Truist Financial cut their target price on shares of Robinhood Markets from $130.00 to $120.00 and set a “buy” rating on the stock in a report on Thursday. Zacks Research cut shares of Robinhood Markets from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 6th. Argus started coverage on Robinhood Markets in a report on Friday, January 9th. They set a “buy” rating and a $145.00 target price on the stock. Compass Point restated a “buy” rating on shares of Robinhood Markets in a report on Wednesday. Finally, Morgan Stanley raised their price target on Robinhood Markets from $146.00 to $147.00 and gave the stock an “equal weight” rating in a research report on Monday, December 22nd. Eighteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $126.95.

Insider Transactions at Robinhood Markets

In other news, CEO Vladimir Tenev sold 375,000 shares of the company’s stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $121.63, for a total transaction of $45,611,250.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CTO Jeffrey Tsvi Pinner sold 5,864 shares of Robinhood Markets stock in a transaction that occurred on Monday, January 26th. The shares were sold at an average price of $107.48, for a total value of $630,262.72. Following the completion of the sale, the chief technology officer directly owned 9,133 shares in the company, valued at approximately $981,614.84. This represents a 39.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 1,537,615 shares of company stock valued at $182,272,702. 14.47% of the stock is currently owned by company insiders.

Key Headlines Impacting Robinhood Markets

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

• Positive Sentiment: Large institutional buying signals conviction from some long-term investors — Ark/ Cathie Wood bought roughly $34M of HOOD, which supports a recovery narrative after the crypto-driven sell-off. Cathie Wood Sees Opportunity in Robinhood’s Crypto Weakness
• Positive Sentiment: Some analysts argue the selloff is overblown — Truist told clients the pullback may be excessive and maintained a constructive view despite trimming its price target. That view helps underpin short-term buying. Robinhood (HOOD) Stock Selloff May Be Overblown, Said Truist
• Positive Sentiment: Management is pushing new growth levers (prediction markets, product velocity, international expansion) and outlined a path to $1T in platform assets — these strategic initiatives are being cited as reasons to look past near-term crypto weakness. Robinhood Outlines Path to $1T in Platform Assets
• Positive Sentiment: Multiple analysts and outlets are pitching HOOD as a buy-the-dip opportunity given its growth outside crypto and steep share decline from highs — this is attracting bargain hunters. Why Robinhood’s Near-50% Fall Could Be a Buy-the-Dip Opportunity
• Neutral Sentiment: Truist lowered its price target (from $130 to $120) but kept a Buy rating — that’s a mixed signal: confidence in medium-term upside but recognition of nearer-term risks. Truist Lowers Price Target on HOOD
• Neutral Sentiment: Broader tech and crypto market moves are weighing on HOOD — several pieces note HOOD trading more like bitcoin recently, amplifying volatility that may be unrelated to its core retail brokerage revenue growth. Robinhood’s Stock Is Now Trading Almost Exactly Like Bitcoin
• Negative Sentiment: Q4 results missed revenue expectations as crypto revenue collapsed (~38%), which triggered the initial selloff and investor concern about earnings sensitivity to crypto volumes. That earnings miss remains the primary near-term catalyst for selling pressure. Robinhood Stock Falls as Crypto Revenue Collapses
• Negative Sentiment: Analyst downgrades and negative headlines pushed shares sharply lower after earnings (some reports note ~9% intraday drops), increasing volatility and prompting short-term sellers. Robinhood Stock Down Following Analyst Downgrade

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in HOOD. Empowered Funds LLC increased its stake in Robinhood Markets by 46.7% in the 1st quarter. Empowered Funds LLC now owns 49,870 shares of the company’s stock valued at $2,076,000 after buying an additional 15,885 shares during the last quarter. Aberdeen Group plc grew its holdings in shares of Robinhood Markets by 51.8% in the 2nd quarter. Aberdeen Group plc now owns 27,895 shares of the company’s stock valued at $2,612,000 after acquiring an additional 9,520 shares in the last quarter. Yousif Capital Management LLC grew its holdings in shares of Robinhood Markets by 8.3% in the 2nd quarter. Yousif Capital Management LLC now owns 9,473 shares of the company’s stock valued at $887,000 after acquiring an additional 725 shares in the last quarter. Sequoia Financial Advisors LLC grew its holdings in shares of Robinhood Markets by 36.4% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 14,226 shares of the company’s stock valued at $1,332,000 after acquiring an additional 3,800 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. increased its position in shares of Robinhood Markets by 155.5% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 29,480 shares of the company’s stock valued at $2,760,000 after acquiring an additional 17,943 shares during the last quarter. Institutional investors and hedge funds own 93.27% of the company’s stock.

Robinhood Markets Stock Up 6.8%

The firm has a fifty day moving average of $108.89 and a 200-day moving average of $118.14. The firm has a market cap of $68.31 billion, a P/E ratio of 36.88, a price-to-earnings-growth ratio of 1.13 and a beta of 2.43.

Robinhood Markets (NASDAQ:HOOD) last posted its quarterly earnings results on Tuesday, February 10th. The company reported $0.66 earnings per share for the quarter, beating analysts’ consensus estimates of $0.63 by $0.03. Robinhood Markets had a return on equity of 22.32% and a net margin of 42.10%.The firm had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.32 billion. During the same period last year, the company earned $1.01 earnings per share. The business’s revenue was up 26.5% compared to the same quarter last year. On average, equities analysts forecast that Robinhood Markets, Inc. will post 1.35 EPS for the current year.

Robinhood Markets Company Profile

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.