Robinhood Markets (NASDAQ:HOOD) Cut to Strong Sell at Zacks Research

Zacks Research lowered shares of Robinhood Markets (NASDAQ:HOOD) from a hold rating to a strong sell rating in a report published on Wednesday,Zacks.com reports.

HOOD has been the topic of several other research reports. Weiss Ratings reissued a “hold (c)” rating on shares of Robinhood Markets in a research report on Friday, March 27th. Sanford C. Bernstein cut their price target on Robinhood Markets from $160.00 to $130.00 and set an “outperform” rating for the company in a report on Monday, March 30th. Cantor Fitzgerald cut their price target on Robinhood Markets from $130.00 to $100.00 and set an “overweight” rating for the company in a report on Tuesday, February 17th. Citizens Jmp reaffirmed a “market outperform” rating and issued a $180.00 price target on shares of Robinhood Markets in a report on Wednesday, February 11th. Finally, Mizuho cut their price target on Robinhood Markets from $135.00 to $110.00 and set an “outperform” rating for the company in a report on Friday, March 13th. Eighteen investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Robinhood Markets currently has an average rating of “Moderate Buy” and an average target price of $110.25.

Robinhood Markets Trading Down 1.3%

NASDAQ:HOOD opened at $69.19 on Wednesday. The stock has a market capitalization of $62.29 billion, a PE ratio of 33.59, a price-to-earnings-growth ratio of 1.71 and a beta of 2.46. The firm’s 50 day moving average is $75.27 and its 200 day moving average is $108.06. Robinhood Markets has a 12 month low of $39.21 and a 12 month high of $153.86.

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

Insiders Place Their Bets

In other Robinhood Markets news, insider Steven M. Quirk sold 52,540 shares of the company’s stock in a transaction 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 transaction, the insider directly owned 27,564 shares in the company, valued at approximately $2,420,394.84. This represents a 65.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of Robinhood Markets stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $69.85, for a total value of $698,500.00. Following the sale, the insider directly owned 442,849 shares in the company, valued at approximately $30,933,002.65. The trade was a 2.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 469,239 shares of company stock valued at $34,161,725 in the last 90 days. 14.47% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Robinhood Markets

Hedge funds have recently bought and sold shares of the business. Valley National Advisers Inc. increased its position in 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 buying an additional 100 shares in the last quarter. Sound Income Strategies LLC increased its position in shares of Robinhood Markets by 152.6% during the fourth quarter. Sound Income Strategies LLC now owns 240 shares of the company’s stock valued at $26,000 after acquiring an additional 145 shares in the last quarter. CYBER HORNET ETFs LLC increased its position in shares of Robinhood Markets by 527.8% during the fourth quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company’s stock valued at $26,000 after acquiring an additional 190 shares in the last quarter. Golden State Wealth Management LLC increased its position in shares of Robinhood Markets by 107.6% during the third quarter. Golden State Wealth Management LLC now owns 191 shares of the company’s stock valued at $27,000 after acquiring an additional 99 shares in the last quarter. Finally, Elyxium Wealth LLC bought a new stake in shares of Robinhood Markets during the fourth quarter valued at approximately $27,000. Institutional investors own 93.27% of the company’s stock.

Robinhood Markets News Summary

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

• Positive Sentiment: Robinhood was selected (with BNY Mellon) to run the U.S. Treasury “Trump Accounts” child savings program — a potential long‑term customer acquisition and recurring deposit channel that could boost assets and engagement. Robinhood, BNY Win Trump Accounts
• Positive Sentiment: ARK Invest / Cathie Wood bought HOOD shares (reported multi‑million dollar purchase), a visible institutional endorsement that can support sentiment and trading flows. Cathie Wood Buys Trending Tech Stocks
• Neutral Sentiment: Keefe, Bruyette & Woods initiated coverage on HOOD with a “market perform” rating and a $75 target — adds another sell‑side reference point but is not strongly bullish. KBW Coverage
• Neutral Sentiment: Industry reviews and Q4 rundowns compare Robinhood with fintech peers; these pieces help frame near‑term performance expectations but don’t change fundamentals immediately. Q4 Rundown: Robinhood Vs Peers
• Negative Sentiment: Major price‑target cuts and cautious notes: Morgan Stanley cut its target from $147 to $95 and moved to “equal weight,” while multiple other brokers trimmed targets — analyst downgrades and lower targets pressure sentiment and reduce upside expectations. Morgan Stanley Price Target Cut
• Negative Sentiment: Zacks Research downgraded HOOD from “hold” to “strong sell,” adding a firm‑level negative recommendation into the market narrative. Zacks Downgrade
• Negative Sentiment: Significant insider selling: CEO Vladimir Tenev sold 375,000 shares, CTO Jeffrey Pinner sold ~5,835 shares, and director Daniel Gallagher sold 10,000 shares under Rule 10b5‑1 plans. The scale of sales is weighing on sentiment even if pre‑arranged. Tenev SEC Filing Pinner SEC Filing
• Negative Sentiment: Legal / third‑party risk: coverage on Robinhood’s exposure to Kalshi (a prediction‑markets platform facing state bans and criminal charges) highlights potential regulatory and reputational risk. Kalshi Risk Coverage

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.