Wall Street Zen Downgrades Robinhood Markets (NASDAQ:HOOD) to Sell

Robinhood Markets (NASDAQ:HOOD) was downgraded by stock analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report issued on Saturday.

Other equities analysts also recently issued research reports about the stock. KeyCorp decreased their price objective on shares of Robinhood Markets from $160.00 to $130.00 and set an “overweight” rating for the company in a research note on Monday, February 9th. Wolfe Research upgraded Robinhood Markets from a “peer perform” rating to an “outperform” rating and set a $125.00 price target on the stock in a research note on Monday, February 9th. Loop Capital set a $130.00 price target on Robinhood Markets in a research report on Monday. Keefe, Bruyette & Woods increased their price objective on Robinhood Markets from $121.00 to $135.00 and gave the company a “market perform” rating in a report on Thursday, November 6th. Finally, Needham & Company LLC lowered their target price on shares of Robinhood Markets from $135.00 to $100.00 and set a “buy” rating on the stock in a research report on Wednesday. Eighteen research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $126.95.

Robinhood Markets Stock Up 6.8%

Shares of HOOD opened at $75.97 on Friday. The company has a market capitalization of $68.31 billion, a price-to-earnings ratio of 36.88, a price-to-earnings-growth ratio of 1.13 and a beta of 2.43. Robinhood Markets has a 52-week low of $29.66 and a 52-week high of $153.86. The stock has a 50 day moving average price of $108.89 and a 200 day moving average price of $118.14.

Robinhood Markets (NASDAQ:HOOD) last released its quarterly earnings data on Tuesday, February 10th. The company reported $0.66 earnings per share 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 company had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.32 billion. During the same quarter last year, the company earned $1.01 earnings per share. The firm’s revenue for the quarter was up 26.5% on a year-over-year basis. On average, equities analysts anticipate that Robinhood Markets will post 1.35 EPS for the current fiscal year.

Insider Activity

In related news, CEO Vladimir Tenev sold 375,000 shares of the firm’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $121.63, for a total value of $45,611,250.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Steven M. Quirk sold 52,540 shares of Robinhood Markets stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $87.81, for a total value of $4,613,537.40. Following the completion of the sale, the insider directly owned 27,564 shares in the company, valued at $2,420,394.84. This represents a 65.59% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 1,537,615 shares of company stock valued at $182,272,702. 14.47% of the stock is owned by corporate insiders.

Institutional Trading of Robinhood Markets

Several hedge funds have recently modified their holdings of the business. Vanguard Group Inc. increased its holdings 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 in the last quarter. State Street Corp increased its holdings in Robinhood Markets by 2.7% in the fourth quarter. State Street Corp now owns 33,121,452 shares of the company’s stock valued at $3,746,036,000 after buying an additional 875,297 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Robinhood Markets by 1.7% during the 4th quarter. Geode Capital Management LLC now owns 21,171,925 shares of the company’s stock valued at $2,386,944,000 after acquiring an additional 356,902 shares during the period. Morgan Stanley boosted its stake in shares of Robinhood Markets by 23.9% during the 4th quarter. Morgan Stanley now owns 10,683,776 shares of the company’s stock worth $1,208,335,000 after acquiring an additional 2,061,832 shares in the last quarter. Finally, Norges Bank acquired a new stake in shares of Robinhood Markets in the 4th quarter worth approximately $1,202,160,000. 93.27% of the stock is owned by institutional investors and hedge funds.

More Robinhood Markets News

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

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.