Robinhood Markets (NASDAQ:HOOD) Stock Price Down 8.8% Following Analyst Downgrade

Robinhood Markets, Inc. (NASDAQ:HOOD)’s share price was down 8.8% during mid-day trading on Thursday 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 $70.43 and last traded at $71.12. Approximately 56,906,528 shares were traded during trading, an increase of 82% from the average daily volume of 31,314,533 shares. The stock had previously closed at $77.97.

A number of other research firms have also recently commented on HOOD. Compass Point reiterated a “buy” rating on shares of Robinhood Markets in a research note on Wednesday. CICC Research assumed coverage on shares of Robinhood Markets in a report on Monday, October 27th. They issued an “outperform” rating and a $155.00 price objective for the company. Citizens Jmp reiterated a “market outperform” rating and issued a $180.00 price objective on shares of Robinhood Markets in a report on Wednesday. Wolfe Research raised shares of Robinhood Markets from a “peer perform” rating to an “outperform” rating and set a $125.00 target price on the stock in a research note on Monday. Finally, Argus assumed coverage on shares of Robinhood Markets in a research report on Friday, January 9th. They set a “buy” rating and a $145.00 price objective for the company. Eighteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $126.95.

Insider Activity at Robinhood Markets

In other Robinhood Markets news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the firm’s stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $87.07, for a total transaction of $870,700.00. Following the completion of the transaction, the insider owned 393,612 shares of the company’s stock, valued at approximately $34,271,796.84. This trade represents a 2.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Steven M. Quirk sold 52,540 shares of Robinhood Markets stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $87.81, for a total transaction of $4,613,537.40. Following the sale, the insider 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,537,615 shares of company stock worth $182,272,702 over the last three months. 14.47% of the stock is currently owned by company 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 Investors Weigh In On Robinhood Markets

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

Robinhood Markets Price Performance

The firm has a market cap of $63.95 billion, a P/E ratio of 34.52, a price-to-earnings-growth ratio of 1.21 and a beta of 2.43. The stock’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 results on Tuesday, February 10th. The company reported $0.66 EPS for the quarter, beating 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 firm had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.32 billion. During the same quarter last year, the company posted $1.01 earnings per share. The company’s revenue for the quarter was up 26.5% compared to the same quarter last year. As a group, analysts forecast 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.