Robinhood Markets (NASDAQ:HOOD) Shares Down 9% After Analyst Downgrade

Robinhood Markets, Inc. (NASDAQ:HOOD) was down 9% during trading on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $152.00 to $130.00. The Goldman Sachs Group currently has a buy rating on the stock. Robinhood Markets traded as low as $74.25 and last traded at $77.9210. Approximately 68,429,979 shares changed hands during trading, an increase of 125% from the average daily volume of 30,391,547 shares. The stock had previously closed at $85.60.

HOOD has been the topic of a number of other reports. Weiss Ratings restated a “hold (c+)” rating on shares of Robinhood Markets in a report on Monday, December 22nd. Mizuho boosted their target price on shares of Robinhood Markets from $145.00 to $172.00 and gave the company an “outperform” rating in a research report on Thursday, November 6th. Needham & Company LLC cut their target price on shares of Robinhood Markets from $135.00 to $100.00 and set a “buy” rating on the stock in a research note on Wednesday. Truist Financial decreased their price target on shares of Robinhood Markets from $155.00 to $130.00 and set a “buy” rating for the company in a research note on Friday, February 6th. Finally, Sanford C. Bernstein reiterated an “outperform” rating on shares of Robinhood Markets in a report on Wednesday. Eighteen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $127.41.

Insider Buying and Selling at Robinhood Markets

In other Robinhood Markets news, CTO Jeffrey Tsvi Pinner sold 5,864 shares of Robinhood Markets stock in a transaction dated Monday, January 26th. The stock was sold at an average price of $107.48, for a total transaction of $630,262.72. Following the completion of the transaction, the chief technology officer owned 9,133 shares in the company, valued at approximately $981,614.84. The trade was a 39.10% decrease in their position. The transaction was disclosed in a document filed 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 that occurred on Tuesday, February 3rd. The stock was sold at an average price of $87.81, for a total value of $4,613,537.40. Following the completion of the sale, 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 ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 1,537,615 shares of company stock valued at $182,272,702. Insiders own 19.95% of the company’s stock.

Key Headlines Impacting Robinhood Markets

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

• Positive Sentiment: Q4 EPS beat and strong full‑year metrics — Robinhood reported $0.66 EPS (beat), record 2025 revenue ($4.5B), record net deposits ($68B) and 4.2M Gold subscribers, supporting longer‑term monetization. GlobeNewswire: Q4 & Full Year 2025 Results
• Positive Sentiment: Prediction markets and strategic moves could be a material new growth engine — management highlighted record event‑contract volume, the Rothera joint venture and the MIAXdx acquisition to build an exchange/clearing capability. This repositions revenue mix away from crypto over time. WSJ: Prediction‑Market Lift
• Neutral Sentiment: CFO transition and 2026 expense plan — new CFO Shiv Verma is in place and management guided to higher adjusted operating expenses to accelerate product launches and international expansion (guidance: ~$2.6B–$2.725B Adjusted OpEx & SBC), a mixed signal for near‑term margins. GlobeNewswire: Financial Outlook
• Negative Sentiment: Revenue missed consensus and crypto contracting — Q4 revenue was $1.28B vs. ~$1.32B consensus; crypto revenue fell ~38% year‑over‑year and app crypto volumes dropped materially, which is the main reason investors pared exposure. Zacks: Q4 Earnings Beat, Crypto Weakness
• Negative Sentiment: Analysts trimmed price targets — several firms (Goldman, Piper Sandler, Barclays, Needham) lowered targets this morning (kept constructive ratings in many cases), which can amplify selling pressure even when ratings remain buy/overweight. TickerReport / Benzinga: Analyst PT Changes
• Negative Sentiment: Market reaction and volume — the stock is trading down on heavy volume as investors focus on the revenue miss, crypto softness and near‑term expense cadence; that amplified moves in ETFs and derivatives tied to the name. MarketWatch: Crypto Caution Weighs on Stock

Institutional Inflows and Outflows

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

Robinhood Markets Stock Down 9.0%

The company has a market cap of $70.07 billion, a P/E ratio of 32.33, a price-to-earnings-growth ratio of 1.34 and a beta of 2.43. The company has a fifty day moving average of $112.45 and a 200 day moving average of $118.97.

Robinhood Markets (NASDAQ:HOOD) last posted its earnings results on Tuesday, February 10th. The company reported $0.66 earnings per share for the quarter, beating 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 return on equity of 21.74% and a net margin of 52.19%.Robinhood Markets’s revenue was up 26.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.01 earnings per share. As a group, research 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.