Robinhood Markets (NASDAQ:HOOD) Stock Price Down 9% Following Analyst Downgrade

Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock price fell 9% on Wednesday after Truist Financial lowered their price target on the stock from $130.00 to $120.00. Truist Financial currently has a buy rating on the stock. Robinhood Markets traded as low as $74.25 and last traded at $77.9210. 68,429,979 shares were traded during trading, an increase of 125% from the average session volume of 30,391,547 shares. The stock had previously closed at $85.60.

Several other research firms have also recently weighed in on HOOD. Dbs Bank upgraded shares of Robinhood Markets to a “moderate buy” rating in a research report on Wednesday, November 12th. Citizens Jmp reaffirmed a “market outperform” rating and set a $180.00 price target on shares of Robinhood Markets in a research report on Wednesday. Compass Point reiterated a “buy” rating on shares of Robinhood Markets in a report on Wednesday. Morgan Stanley lifted their price objective 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. Finally, Sanford C. Bernstein reissued an “outperform” rating on shares of Robinhood Markets in a research note on Wednesday. Eighteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $126.95.

Insider Transactions at Robinhood Markets

In other Robinhood Markets news, CEO Vladimir Tenev sold 375,000 shares of the firm’s stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $121.63, for a total value of $45,611,250.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $87.07, for a total value of $870,700.00. Following the transaction, the insider directly owned 393,612 shares in the company, valued at $34,271,796.84. The trade was a 2.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 1,537,615 shares of company stock valued at $182,272,702. 14.47% of the stock is currently owned by corporate insiders.

Key Robinhood Markets News

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)

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of HOOD. Caisse Des Depots ET Consignations purchased a new stake in shares of Robinhood Markets during the 3rd quarter valued at $3,984,000. Jennison Associates LLC bought a new stake in Robinhood Markets in the third quarter worth about $322,823,000. New York Life Investment Management LLC purchased a new position in Robinhood Markets in the third quarter valued at about $14,989,000. Allstate Corp bought a new position in shares of Robinhood Markets during the 3rd quarter valued at approximately $3,860,000. Finally, Rhumbline Advisers increased its stake in shares of Robinhood Markets by 55.9% during the 3rd quarter. Rhumbline Advisers now owns 1,333,857 shares of the company’s stock worth $190,982,000 after purchasing an additional 478,523 shares during the last quarter. Institutional investors and hedge funds own 93.27% of the company’s stock.

Robinhood Markets Stock Performance

The company has a market cap of $63.95 billion, a PE ratio of 34.52, a price-to-earnings-growth ratio of 1.21 and a beta of 2.43. The company’s 50 day moving average price is $110.01 and its 200-day moving average price 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 for the quarter, beating the consensus estimate of $0.63 by $0.03. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.32 billion. Robinhood Markets had a return on equity of 22.32% and a net margin of 42.10%.Robinhood Markets’s revenue was up 26.5% compared to the same quarter last year. During the same period in the prior year, the company earned $1.01 earnings per share. Equities research analysts expect 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.