Robinhood Markets (NASDAQ:HOOD) Trading Down 2% – Should You Sell?

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) traded down 2% on Wednesday . The stock traded as low as $112.85 and last traded at $113.10. 15,624,183 shares changed hands during mid-day trading, a decline of 59% from the average session volume of 38,316,293 shares. The stock had previously closed at $115.45.

More Robinhood Markets News

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

• Positive Sentiment: CEO commentary highlights prediction-market strategy and product potential — management is publicly explaining how trading real‑world events fits Robinhood’s consumer-first approach, which supports longer‑term monetization hopes. Robinhood CEO explains prediction markets—trading real-world events?
• Positive Sentiment: Industry TAM thesis: analysis suggests prediction markets could reach a large volume pool (report cites a potential ~$300B opportunity), reinforcing why Robinhood’s early lead in retail prediction trading could be strategically important. Prediction Markets Eye $300B in Volume As a Global ‘Truth’ Layer
• Positive Sentiment: Analyst/investor writeups continue to include HOOD as a secular growth name (e.g., listed among stocks “better than crypto” and as a founder‑run company), which supports conviction among long‑term investors. 4 Stocks to Buy for 2026 That Are Better Bets Than Crypto
• Neutral Sentiment: Retail investor guidance pieces question valuation and timing (e.g., “Should you buy HOOD while it’s below $125?”) — these pieces keep the stock on watchlists but don’t create immediate catalysts. Should You Buy Robinhood Markets Stock While It’s Below $125?
• Neutral Sentiment: Media coverage of bullish 2026 forecasts from Robinhood and related commentary is generating attention, but specifics on revenue capture and regulatory clarity remain open. Robinhood makes shocking prediction for 2026
• Negative Sentiment: Competitor risk: DraftKings’ official launch of prediction markets validates the prize but increases competition for users and attention—this is a direct headwind to Robinhood’s market share in event trading. DraftKings Launches Prediction Markets: Analysts Eye 30% Upside (HOOD)
• Negative Sentiment: Analyst downgrade: Needham trimmed expectations for HOOD, which tends to pressure sentiment and can trigger short‑term selling by momentum funds. Needham & Company LLC Has Lowered Expectations for Robinhood Markets (NASDAQ:HOOD) Stock Price

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on HOOD shares. Truist Financial began coverage on Robinhood Markets in a report on Wednesday, December 17th. They issued a “buy” rating and a $155.00 price objective for the company. Bank of America reduced their price target on shares of Robinhood Markets from $166.00 to $154.00 and set a “buy” rating for the company in a research note on Wednesday, December 10th. Mizuho raised their target price on shares of Robinhood Markets from $145.00 to $172.00 and gave the stock an “outperform” rating in a report on Thursday, November 6th. The Goldman Sachs Group lifted their target price on shares of Robinhood Markets from $134.00 to $152.00 and gave the stock a “buy” rating in a research report on Tuesday, September 30th. Finally, Citizens Jmp boosted their target price on shares of Robinhood Markets from $170.00 to $180.00 and gave the company a “market outperform” rating in a research note on Friday, November 7th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Robinhood Markets presently has an average rating of “Moderate Buy” and a consensus price target of $136.80.

Robinhood Markets Stock Down 2.0%

The firm has a market capitalization of $101.70 billion, a PE ratio of 46.93, a PEG ratio of 2.14 and a beta of 2.43. The stock’s fifty day simple moving average is $127.10 and its 200 day simple moving average is $116.37.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings results on Wednesday, November 5th. The company reported $0.61 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.20. The business had revenue of $1.27 billion for the quarter, compared to analysts’ expectations of $1.15 billion. Robinhood Markets had a net margin of 52.19% and a return on equity of 21.74%. The company’s revenue was up 100.0% compared to the same quarter last year. During the same quarter last year, the company posted $0.17 EPS. On average, analysts predict that Robinhood Markets, Inc. will post 1.35 EPS for the current year.

Insider Activity at Robinhood Markets

In related news, insider Steven M. Quirk sold 49,942 shares of the stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $131.15, for a total value of $6,549,893.30. Following the completion of the sale, the insider directly owned 54,496 shares of the company’s stock, valued at approximately $7,147,150.40. This represents a 47.82% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Daniel Martin Gallagher, Jr. sold 120,000 shares of Robinhood Markets stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $132.13, for a total transaction of $15,855,600.00. Following the transaction, the insider directly owned 430,012 shares in the company, valued at $56,817,485.56. This represents a 21.82% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 2,936,763 shares of company stock worth $371,050,559. 19.95% of the stock is owned by company insiders.

Institutional Investors Weigh In On Robinhood Markets

A number of institutional investors have recently added to or reduced their stakes in HOOD. Hantz Financial Services Inc. boosted its position in shares of Robinhood Markets by 120.3% during the second quarter. Hantz Financial Services Inc. now owns 271 shares of the company’s stock worth $25,000 after acquiring an additional 148 shares during the last quarter. Valley National Advisers Inc. lifted its stake in Robinhood Markets by 113.6% in the 3rd 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. Golden State Wealth Management LLC boosted its holdings in shares of Robinhood Markets by 107.6% during the 3rd quarter. Golden State Wealth Management LLC now owns 191 shares of the company’s stock valued at $27,000 after purchasing an additional 99 shares during the last quarter. Smithfield Trust Co bought a new position in shares of Robinhood Markets during the 2nd quarter valued at about $29,000. Finally, Stonehage Fleming Financial Services Holdings Ltd purchased a new position in shares of Robinhood Markets during the third quarter valued at about $29,000. 93.27% of the stock is owned by hedge funds and other institutional investors.

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.