Robinhood Markets (NASDAQ:HOOD) Shares Down 8.8% After Analyst Downgrade

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) were down 8.8% 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.

Several other analysts have also issued reports on HOOD. Wolfe Research upgraded 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 report on Monday. Mizuho raised their target price on Robinhood Markets from $145.00 to $172.00 and gave the company an “outperform” rating in a research report on Thursday, November 6th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $130.00 target price on shares of Robinhood Markets in a report on Monday. Dbs Bank raised shares of Robinhood Markets to a “moderate buy” rating in a research note on Wednesday, November 12th. Finally, Zacks Research lowered Robinhood Markets from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 6th. Eighteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $126.95.

Insider Activity at Robinhood Markets

In related news, insider Steven M. Quirk sold 52,540 shares of Robinhood Markets stock in a transaction that occurred 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 sale, the insider owned 27,564 shares in the company, valued at approximately $2,420,394.84. This trade represents a 65.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Vladimir Tenev sold 375,000 shares of the business’s stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $121.63, for a total value of $45,611,250.00. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 1,537,615 shares of company stock worth $182,272,702. 14.47% of the stock is owned by corporate insiders.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: Record 2025 results and EPS beat — Robinhood reported record full‑year revenue ($4.5B), Q4 EPS that topped estimates, strong net deposits and rising Gold subscribers — evidence of healthy user monetization that supports a longer‑term growth story. Read More.
• Positive Sentiment: Product & strategic momentum — Robinhood is pushing prediction markets, expanded international products (Bitstamp, stock tokens), and a JV (Rothera) / MIAXdx move that can expand transactional volume and new fee streams. These initiatives are cited by management as key growth drivers. Read More.
• Positive Sentiment: Institutional interest — Ark Invest bought shares (reported earlier), signaling that some large investors see the recent weakness as a buying opportunity. That can provide a floor to the stock. Read More.
• Neutral Sentiment: Analyst reactions are mixed — several firms trimmed price targets after the print but left “buy/overweight” ratings, keeping upside in consensus targets even as short‑term sentiment weakens. (Analyst downgrades of targets can pressure shares but maintained ratings limit the severity.) Read More.
• Negative Sentiment: Crypto revenue collapse drove the miss — crypto transaction revenue fell ~38% YoY in Q4, leaving total Q4 revenue below Street estimates and triggering the immediate sell‑off. Crypto volatility remains a major short‑term risk for HOOD. Read More.
• Negative Sentiment: Revenue miss vs. consensus — Q4 revenue came in below forecasts (reported $1.28B vs. ~$1.32B est.), which outweighed the EPS beat in the eyes of many traders and prompted downgrades/target trims. Read More.
• Negative Sentiment: Planned expense increase for 2026 — management outlined a growth‑investment expense plan (adjusted operating expenses and SBC guidance up ~18% at midpoint), which adds uncertainty on near‑term margins and gives some investors reason to be cautious. Read More.

Institutional Trading of Robinhood Markets

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in Robinhood Markets by 24.9% in the 3rd quarter. Vanguard Group Inc. now owns 94,437,054 shares of the company’s stock valued at $13,521,497,000 after buying an additional 18,824,923 shares during the period. State Street Corp boosted its holdings in Robinhood Markets by 103.2% in the third quarter. State Street Corp now owns 32,246,155 shares of the company’s stock valued at $4,617,004,000 after purchasing an additional 16,375,734 shares during the period. WCM Investment Management LLC increased its holdings in Robinhood Markets by 3,615.7% during the 2nd quarter. WCM Investment Management LLC now owns 11,555,160 shares of the company’s stock worth $1,081,910,000 after purchasing an additional 11,244,182 shares during the period. Norges Bank acquired a new stake in Robinhood Markets in the 4th quarter valued at about $1,202,160,000. Finally, Paradigm Operations LP acquired a new stake in Robinhood Markets in the 2nd quarter valued at about $308,979,000. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

Robinhood Markets Trading Down 8.8%

The firm has a market cap of $63.95 billion, a PE ratio of 34.52, a PEG ratio of 1.32 and a beta of 2.43. The firm has a 50 day moving average price of $111.33 and a 200-day moving average price of $118.68.

Robinhood Markets (NASDAQ:HOOD) last posted its quarterly earnings results on Tuesday, February 10th. The company reported $0.66 EPS for the quarter, topping the consensus estimate of $0.63 by $0.03. The company had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.32 billion. Robinhood Markets had a net margin of 42.10% and a return on equity of 22.97%. The firm’s revenue was up 26.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.01 EPS. Equities analysts forecast 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.