Robinhood Markets (NASDAQ:HOOD) Stock Rating Cut to “Strong Sell” at Wall Street Zen

Wall Street Zen lowered shares of Robinhood Markets (NASDAQ:HOOD) from a hold rating to a strong sell rating in a report published on Sunday,Wall Street Zen reports.

Other equities research analysts have also recently issued research reports about the company. Raymond James Financial reissued a “market perform” rating on shares of Robinhood Markets in a research note on Monday, October 5th. Citizens Jmp reiterated a “market outperform” rating and issued a $165.00 target price on shares of Robinhood Markets in a report on Wednesday, October 28th. Rothschild & Co Redburn increased their price objective on shares of Robinhood Markets from $78.00 to $80.00 and gave the stock a “sell” rating in a report on Friday, August 14th. Rosenblatt Securities reiterated a “buy” rating and set a $135.00 price target on shares of Robinhood Markets in a report on Wednesday, October 28th. Finally, Wells Fargo & Company lowered their price target on shares of Robinhood Markets from $120.00 to $100.00 and set an “equal weight” rating for the company in a research report on Wednesday, October 28th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $127.39.

Robinhood Markets Stock Performance

NASDAQ HOOD opened at $84.99 on Friday. The company has a 50-day simple moving average of $108.49 and a two-hundred day simple moving average of $93.04. The firm has a market cap of $76.41 billion, a price-to-earnings ratio of 39.17, a PEG ratio of 1.78 and a beta of 2.57. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 0.26. Robinhood Markets has a 12-month low of $63.51 and a 12-month high of $150.47.

Robinhood Markets (NASDAQ:HOOD) last posted its quarterly earnings data on Tuesday, October 27th. The company reported $0.60 earnings per share for the quarter, beating analysts’ consensus estimates of $0.56 by $0.04. The firm had revenue of $1.42 billion for the quarter, compared to analysts’ expectations of $1.44 billion. Robinhood Markets had a return on equity of 21.49% and a net margin of 39.04%. The business’s quarterly revenue was up 11.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.61 EPS. On average, equities analysts forecast that Robinhood Markets will post 2.18 EPS for the current year.

Insider Activity at Robinhood Markets

In related news, CFO Shiv Verma sold 11,472 shares of the company’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $110.42, for a total transaction of $1,266,738.24. Following the completion of the sale, the chief financial officer owned 56,858 shares of the company’s stock, valued at approximately $6,278,260.36. This represents a 16.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 the company’s stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $113.71, for a total transaction of $1,137,100.00. Following the sale, the insider directly owned 499,943 shares in the company, valued at approximately $56,848,518.53. The trade was a 1.96% 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 sold a total of 1,081,347 shares of company stock valued at $127,543,680 over the last ninety days. 13.48% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. Caldwell Trust Co raised its holdings in shares of Robinhood Markets by 56.4% during the third quarter. Caldwell Trust Co now owns 4,279 shares of the company’s stock worth $481,000 after purchasing an additional 1,543 shares during the period. 3Chopt Investment Partners LLC acquired a new position in shares of Robinhood Markets during the third quarter worth approximately $218,000. Compass Financial Management LLC raised its stake in shares of Robinhood Markets by 36.3% in the 3rd quarter. Compass Financial Management LLC now owns 1,834 shares of the company’s stock valued at $206,000 after buying an additional 488 shares in the last quarter. Rakuten Investment Management Inc. increased its holdings in shares of Robinhood Markets by 9.7% during the third quarter. Rakuten Investment Management Inc. now owns 139,373 shares of the company’s stock worth $16,198,000 after buying an additional 12,304 shares in the last quarter. Finally, Provenance Wealth Advisors LLC acquired a new position in shares of Robinhood Markets during the third quarter valued at $77,000. Hedge funds and other institutional investors own 93.27% of the company’s stock.

Robinhood Markets News Roundup

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

• Positive Sentiment: Diversification is gaining traction. Robinhood reported record third-quarter revenue of approximately $1.42 billion, while prediction-market activity, equities, options and margin trading remained strong. Management also highlighted expansion of its Agentic Trading suite, crypto offerings and broader financial “super app” strategy. Robinhood’s Diversification Push Gains Momentum in Q3
• Positive Sentiment: Prediction markets are a major growth opportunity. The business reportedly grew sevenfold year over year, with management arguing that prediction markets could become a significant long-term revenue stream as activity expands beyond sports. Why Robinhood Thinks We’re at the Beginning of a Prediction Market Supercycle
• Positive Sentiment: Some analysts remain bullish. BTIG, Rosenblatt and Citizens JMP reiterated positive ratings, reflecting confidence in Robinhood’s product expansion and longer-term growth potential. BTIG Reaffirms Buy Rating
• Neutral Sentiment: Broader market pressure is adding volatility. A technology selloff and concerns about the sustainability of AI-related spending are weighing on high-growth and trading-platform stocks generally. Morning Call Sheet
• Negative Sentiment: Quarterly profitability disappointed investors. Although revenue reached a record, reports said adjusted EPS missed expectations, while GAAP net income and diluted EPS fell year over year. The contrast between strong top-line growth and weaker earnings raised concerns about operating performance and valuation. Why Wall Street Remains Bullish Despite the Decline
• Negative Sentiment: Crypto revenue fell sharply. Crypto revenue dropped 55% year over year amid a weaker crypto market, reducing a historically important source of transaction revenue. A record Binance theft also pressured crypto-related stocks across the sector. Crypto Stocks Fall After Binance Hack
• Negative Sentiment: Analysts lowered expectations. Wells Fargo, Goldman Sachs, JPMorgan, Barclays, KeyCorp, Scotiabank and Needham reduced price targets or forecasts, contributing to selling pressure. Barclays Cuts Robinhood Price Target

Robinhood Markets Company Profile

Robinhood Markets, Inc is a financial services company that operates a digital brokerage platform. Founded in 2013 by Vlad Tenev and Baiju Bhatt, the company became known for offering commission-free trading and a mobile-first investing experience designed to broaden access to financial markets.

Through its platform, Robinhood provides brokerage services for stocks, exchange-traded funds, options and other investments. Its offerings also include cryptocurrency trading, individual retirement accounts, margin investing, cash management services and Robinhood Gold, a subscription-based product that provides additional features and benefits.