Robinhood Markets (NASDAQ:HOOD) Shares Gap Down on Analyst Downgrade

Robinhood Markets, Inc. (NASDAQ:HOOD) gapped down before the market opened on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $152.00 to $130.00. The stock had previously closed at $85.60, but opened at $77.88. The Goldman Sachs Group currently has a buy rating on the stock. Robinhood Markets shares last traded at $75.2760, with a volume of 24,882,510 shares traded.

A number of other equities analysts have also issued reports on HOOD. Bank of America cut their target price on Robinhood Markets from $166.00 to $154.00 and set a “buy” rating on the stock in a research report on Wednesday, December 10th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Robinhood Markets in a research note on Monday, December 22nd. Wolfe Research raised shares of Robinhood Markets from a “peer perform” rating to an “outperform” rating and set a $125.00 target price for the company in a research report on Monday. Piper Sandler reduced their price target on shares of Robinhood Markets from $155.00 to $135.00 and set an “overweight” rating on the stock in a research report on Wednesday. Finally, Compass Point reissued a “buy” rating on shares of Robinhood Markets in a report on Wednesday. Eighteen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $127.41.

Insider Buying and Selling

In other Robinhood Markets news, CTO Jeffrey Tsvi Pinner sold 5,864 shares of the firm’s stock in a transaction on Monday, January 26th. The stock was sold at an average price of $107.48, for a total value of $630,262.72. Following the sale, the chief technology officer directly owned 9,133 shares in the company, valued at approximately $981,614.84. This trade represents a 39.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Steven M. Quirk sold 52,540 shares of the business’s stock in a transaction on Tuesday, February 3rd. The shares were sold at an average price of $87.81, for a total transaction of $4,613,537.40. Following the transaction, the insider directly owned 27,564 shares of the company’s stock, valued at approximately $2,420,394.84. This trade represents a 65.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,537,615 shares of company stock valued at $182,272,702 over the last quarter. Company insiders own 14.47% of the company’s stock.

Robinhood Markets News Roundup

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 institutional investors and hedge funds have recently bought and sold shares of HOOD. Hantz Financial Services Inc. grew its holdings in Robinhood Markets by 120.3% in the 2nd quarter. Hantz Financial Services Inc. now owns 271 shares of the company’s stock worth $25,000 after buying an additional 148 shares in the last quarter. Valley National Advisers Inc. grew its stake in shares of Robinhood Markets by 113.6% in the third quarter. Valley National Advisers Inc. now owns 188 shares of the company’s stock worth $26,000 after purchasing an additional 100 shares in the last quarter. Sound Income Strategies LLC increased its holdings 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 purchasing an additional 145 shares during the period. CYBER HORNET ETFs LLC raised its stake 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 purchasing an additional 190 shares in the last quarter. Finally, Golden State Wealth Management LLC lifted its holdings in Robinhood Markets by 107.6% in the third quarter. Golden State Wealth Management LLC now owns 191 shares of the company’s stock worth $27,000 after purchasing an additional 99 shares during the period. Institutional investors own 93.27% of the company’s stock.

Robinhood Markets Trading Down 9.0%

The stock has a market cap of $70.07 billion, a P/E ratio of 37.83, a price-to-earnings-growth ratio of 1.32 and a beta of 2.43. The stock’s 50-day moving average is $111.33 and its 200-day moving average is $118.68.

Robinhood Markets (NASDAQ:HOOD) last released 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 the consensus estimate of $1.32 billion. Robinhood Markets had a net margin of 42.10% and a return on equity of 22.97%. Robinhood Markets’s revenue was up 26.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.01 EPS. 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.