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

Robinhood Markets, Inc. (NASDAQ:HOOD) dropped 9% on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $152.00 to $130.00. The Goldman Sachs Group currently has a buy rating on the stock. Robinhood Markets traded as low as $74.25 and last traded at $77.9210. Approximately 68,429,979 shares were traded during trading, an increase of 125% from the average daily volume of 30,391,547 shares. The stock had previously closed at $85.60.

Several other research firms also recently weighed in on HOOD. Mizuho boosted their target price on shares of Robinhood Markets from $145.00 to $172.00 and gave the stock an “outperform” rating in a research report on Thursday, November 6th. Bank of America decreased their price objective on shares of Robinhood Markets from $166.00 to $154.00 and set a “buy” rating for the company in a report on Wednesday, December 10th. Weiss Ratings reissued a “hold (c+)” rating on shares of Robinhood Markets in a report on Monday, December 22nd. Loop Capital set a $130.00 price target on shares of Robinhood Markets in a report on Monday. Finally, Needham & Company LLC dropped their price objective on shares of Robinhood Markets from $135.00 to $100.00 and set a “buy” rating on the stock in a research note on Wednesday. Eighteen investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $127.41.

Insider Buying and Selling at Robinhood Markets

In other Robinhood Markets news, CEO Vladimir Tenev sold 375,000 shares of the business’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 transaction of $45,611,250.00. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the business’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 sale, the insider owned 393,612 shares of the company’s stock, valued at approximately $34,271,796.84. This represents a 2.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,537,615 shares of company stock valued at $182,272,702 over the last ninety days. 14.47% of the stock is currently owned by company insiders.

Robinhood Markets News Summary

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

• Positive Sentiment: Record 2025 fundamentals — Robinhood reported record full‑year revenue ($4.5B), record diluted EPS ($2.05), record net deposits and a jump in Robinhood Gold subscribers, indicating strong user engagement and healthy deposit flows. GlobeNewswire: Q4 & Full Year 2025 Results
• Positive Sentiment: Product & strategic progress — Management highlighted fast growth in prediction markets, a joint venture (Rothera) and the MIAXdx acquisition to build an exchange/clearing capability, which could diversify revenue beyond trading and crypto over time. Investopedia: CEO on Prediction Markets
• Neutral Sentiment: Mixed quarter: EPS beat but revenue missed — Q4 EPS of $0.66 topped estimates, but total revenue of $1.28B fell short of consensus, a split result that leaves upside in profitability metrics but raises top-line questions. Reuters: Record Q4 revenue on retail trading strength
• Negative Sentiment: Crypto revenue collapse — Crypto revenue fell ~38% year‑over‑year and crypto notional volumes on the app plunged, which was the main driver of the revenue miss and the immediate cause of investor selling pressure. Blockonomi: Crypto revenue collapse
• Negative Sentiment: Analysts trimmed price targets — Several firms cut targets after the print (examples include Goldman Sachs, Piper Sandler, Barclays and Needham), reducing near‑term sentiment despite many still keeping buy/overweight stances. Analyst downgrades amplified selling pressure. TickerReport: Analyst price‑target updates
• Negative Sentiment: Market reaction and heavy volume — Investors sold after hours and into the next session as revenue shortfall + crypto weakness outweighed the EPS beat and strategic commentary, producing a sharp intraday decline on high volume. Motley Fool: Why HOOD crashed after earnings

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its position in shares of Robinhood Markets by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 95,771,497 shares of the company’s stock valued at $10,831,756,000 after purchasing an additional 1,334,443 shares during the period. State Street Corp grew its holdings in Robinhood Markets by 103.2% during the 3rd quarter. State Street Corp now owns 32,246,155 shares of the company’s stock valued at $4,617,004,000 after purchasing an additional 16,375,734 shares in the last quarter. Geode Capital Management LLC increased its stake in Robinhood Markets by 1.7% during the 4th quarter. Geode Capital Management LLC now owns 21,171,925 shares of the company’s stock worth $2,386,944,000 after buying an additional 356,902 shares during the period. WCM Investment Management LLC lifted its holdings in Robinhood Markets by 3,615.7% during the 2nd quarter. WCM Investment Management LLC now owns 11,555,160 shares of the company’s stock worth $1,081,910,000 after buying an additional 11,244,182 shares during the last quarter. Finally, Norges Bank bought a new position in Robinhood Markets during the 4th quarter worth $1,202,160,000. 93.27% of the stock is owned by hedge funds and other institutional investors.

Robinhood Markets Trading Down 9.0%

The business’s 50-day simple moving average is $111.33 and its 200 day simple moving average is $118.68. The company has a market capitalization of $70.07 billion, a P/E ratio of 37.83, a P/E/G ratio of 1.32 and a beta of 2.43.

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, topping the consensus estimate of $0.63 by $0.03. The company had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.32 billion. Robinhood Markets had a return on equity of 22.97% and a net margin of 42.10%.Robinhood Markets’s revenue for the quarter was up 26.5% compared to the same quarter last year. During the same quarter last year, the firm earned $1.01 EPS. As a group, sell-side analysts predict that Robinhood Markets, Inc. will post 1.35 EPS 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.