Robinhood Markets (NASDAQ:HOOD) Shares Down 3.6% After Analyst Downgrade

Robinhood Markets, Inc. (NASDAQ:HOOD) traded down 3.6% during trading on Friday after Mizuho lowered their price target on the stock from $135.00 to $110.00. Mizuho currently has an outperform rating on the stock. Robinhood Markets traded as low as $72.80 and last traded at $73.39. 33,185,855 shares were traded during mid-day trading, an increase of 10% from the average session volume of 30,219,871 shares. The stock had previously closed at $76.12.

A number of other equities research analysts also recently weighed in on the company. Argus began coverage on Robinhood Markets in a report on Friday, January 9th. They set a “buy” rating and a $145.00 target price for the company. The Goldman Sachs Group decreased their price target on shares of Robinhood Markets from $152.00 to $130.00 and set a “buy” rating on the stock in a research note on Wednesday, February 11th. Needham & Company LLC lowered their price target 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, February 11th. Truist Financial dropped their price objective on shares of Robinhood Markets from $130.00 to $120.00 and set a “buy” rating for the company in a research note on Thursday, February 12th. Finally, Wall Street Zen downgraded shares of Robinhood Markets from a “hold” rating to a “sell” rating in a report on Saturday, February 14th. Seventeen equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $120.59.

Insider Activity at Robinhood Markets

In other news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the company’s stock in a transaction on Monday, January 5th. The shares were sold at an average price of $121.58, for a total transaction of $1,215,800.00. Following the completion of the transaction, the insider directly owned 403,612 shares in the company, valued at approximately $49,071,146.96. This represents a 2.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Steven M. Quirk sold 52,540 shares of the 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 owned 27,564 shares of the company’s stock, valued at $2,420,394.84. The trade was a 65.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 475,132 shares of company stock worth $55,127,149 in the last 90 days. 14.47% of the stock is currently owned by company insiders.

Robinhood Markets News Roundup

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

• Positive Sentiment: February operating metrics show rising engagement: Robinhood reported year-over-year increases in equity and options DARTs and a 68% YoY surge in platform assets to $314.2B, driven by strong deposits and higher trading activity — a signal of durable customer demand and monetization potential. Read More.
• Positive Sentiment: Prediction markets and “SuperApp” strategy are contributing incremental revenue: MarketBeat highlights that prediction-markets revenue is annualizing at about $435M and is embedded in a broader $4.5B revenue base — supporting upside to revenue diversification and long-term growth. Read More.
• Positive Sentiment: Recent quarterly results remained solid: management reported record revenue and EPS beats (referenced in the MarketBeat coverage), reinforcing the case that RH is expanding revenue streams while maintaining profitability metrics. Read More.
• Neutral Sentiment: Analyst price-target reset but upbeat rating: Mizuho trimmed its HOOD PT from $135 to $110 but kept an “outperform” call — the lower target can cap near-term upside while the rating still signals continued analyst conviction. Read More.
• Neutral Sentiment: Market coverage and idea pieces highlight HOOD as a thematic play (prediction markets, retail trading) but note the stock has been volatile and down YTD — themes that attract interest but also keep sentiment mixed. Read More.
• Negative Sentiment: Competitive and valuation pressure vs. larger brokers: comparative analyses (HOOD vs IBKR) argue Interactive Brokers’ diversification and lower valuation may make it the steadier choice if crypto/trading volumes waver — a relative-risk narrative that can weigh on HOOD multiple. Read More.
• Negative Sentiment: Volatility and drawdown risk highlighted: a Forbes analysis reminds investors that HOOD has experienced large drawdowns in systemic shocks (~-37% average), underscoring the stock’s sensitivity to market stress and crypto turbulence. That risk premium can pressure the share price in uncertain markets. Read More.

Hedge Funds Weigh In On Robinhood Markets

Several large investors have recently bought and sold shares of the company. North Star Investment Management Corp. increased its stake in shares of Robinhood Markets by 44.9% in the third quarter. North Star Investment Management Corp. now owns 255 shares of the company’s stock valued at $37,000 after buying an additional 79 shares during the period. First Command Advisory Services Inc. boosted its position in Robinhood Markets by 33.8% during the 3rd quarter. First Command Advisory Services Inc. now owns 321 shares of the company’s stock worth $46,000 after buying an additional 81 shares during the period. CogentBlue Wealth Advisors LLC boosted its position in Robinhood Markets by 3.8% during the 3rd quarter. CogentBlue Wealth Advisors LLC now owns 2,391 shares of the company’s stock worth $342,000 after buying an additional 87 shares during the period. Evolution Wealth Advisors LLC grew its holdings in Robinhood Markets by 5.2% during the 4th quarter. Evolution Wealth Advisors LLC now owns 1,916 shares of the company’s stock worth $217,000 after acquiring an additional 95 shares during the last quarter. Finally, ORG Partners LLC grew its holdings in Robinhood Markets by 5.5% during the 3rd quarter. ORG Partners LLC now owns 1,876 shares of the company’s stock worth $269,000 after acquiring an additional 97 shares during the last quarter. 93.27% of the stock is currently owned by institutional investors.

Robinhood Markets Trading Down 3.6%

The company’s 50-day simple moving average is $91.33 and its 200-day simple moving average is $113.76. The stock has a market capitalization of $66.07 billion, a price-to-earnings ratio of 35.63, a PEG ratio of 1.72 and a beta of 2.47.

Robinhood Markets (NASDAQ:HOOD) last issued 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. 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 analyst estimates of $1.32 billion. During the same quarter in the previous year, the business earned $1.01 earnings per share. Robinhood Markets’s revenue was up 26.5% compared to the same quarter last year. On average, equities research analysts expect that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal 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.