Robinhood Markets (NASDAQ:HOOD) Trading 5.6% Higher – Still a Buy?

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) shot up 5.6% during trading on Wednesday . The company traded as high as $78.11 and last traded at $77.53. 31,944,754 shares changed hands during mid-day trading, an increase of 3% from the average session volume of 30,995,160 shares. The stock had previously closed at $73.39.

Robinhood Markets News Summary

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

• Positive Sentiment: Robinhood launched a $1 billion closed-end fund, “Robinhood Ventures Fund I,” giving retail investors access to late-stage pre-IPO names (SpaceX, Stripe, Databricks). Investors view this as product diversification beyond brokerage trading and a way to capture fee/asset growth from private markets. Robinhood Opens Pre IPO Access With New US$1b Closed End Fund
• Positive Sentiment: Market commentators and money managers flagged opportunity in Robinhood despite broader tech/AI weakness, supporting buyer interest in the name. Opportunity in SoFi and Robinhood despite AI selloff, says Jay Woods
• Positive Sentiment: Notable active manager buying: Cathie Wood’s fund added to HOOD after the post-earnings dip, which can attract momentum and other institutional interest. Cathie Wood Bought the Dip in Robinhood Stock
• Neutral Sentiment: Trading chatter on retail forums (WallStreetBets) showed mixed interest, which can add short-term volume and volatility but not a clear directional signal. Social Buzz: Wallstreetbets Stocks Mixed
• Neutral Sentiment: Benzinga and other outlets note a small bounce after a recent pullback; traders are reassessing risk in high-beta fintech names rather than reacting to fresh fundamentals. Robinhood Stock Edges Higher Tuesday
• Negative Sentiment: An analyst-derived price target was cut meaningfully (about a 15% reduction to $130.24), which can weigh on investor sentiment and set a lower anchor for valuation expectations. Robinhood Markets (HOOD) price target decreased
• Negative Sentiment: Coverage pieces revisiting “troubled financials” flagged continued sector pressure and questioned whether issues at other fintech/financial firms could spill over to Robinhood, adding caution for some investors. Revisiting 3 Troubled Financials

Analyst Upgrades and Downgrades

HOOD has been the topic of several recent analyst reports. Sanford C. Bernstein reissued an “outperform” rating on shares of Robinhood Markets in a report on Wednesday, February 11th. Compass Point reissued a “buy” rating on shares of Robinhood Markets in a research note on Wednesday, February 11th. Barclays cut their target price on Robinhood Markets from $159.00 to $124.00 and set an “overweight” rating for the company in a research note on Wednesday, February 11th. Needham & Company LLC decreased their price target on Robinhood Markets from $135.00 to $100.00 and set a “buy” rating on the stock in a research note on Wednesday, February 11th. Finally, Loop Capital set a $130.00 price target on Robinhood Markets in a report on Monday, February 9th. Seventeen analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Robinhood Markets has an average rating of “Moderate Buy” and a consensus target price of $121.71.

Robinhood Markets Stock Performance

The company has a market cap of $69.71 billion, a price-to-earnings ratio of 37.64, a P/E/G ratio of 1.24 and a beta of 2.44. The company has a fifty day moving average of $101.66 and a two-hundred day moving average of $116.76.

Robinhood Markets (NASDAQ:HOOD) last issued its earnings results on Tuesday, February 10th. The company reported $0.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.63 by $0.03. Robinhood Markets had a return on equity of 22.32% and a net margin of 42.10%.The business had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.32 billion. During the same quarter in the prior year, the firm earned $1.01 EPS. The business’s revenue for the quarter was up 26.5% compared to the same quarter last year. Equities analysts expect that Robinhood Markets, Inc. will post 1.35 EPS for the current fiscal year.

Insider Buying and Selling at Robinhood Markets

In other Robinhood Markets news, insider Steven M. Quirk sold 52,540 shares of the business’s stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $87.81, for a total transaction of $4,613,537.40. Following the sale, the insider directly owned 27,564 shares of the company’s stock, valued at $2,420,394.84. The trade was a 65.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CTO Jeffrey Tsvi Pinner sold 5,865 shares of the company’s stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $132.26, for a total transaction of $775,704.90. Following the completion of the transaction, the chief technology officer owned 26,725 shares of the company’s stock, valued at approximately $3,534,648.50. This trade represents a 18.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 640,939 shares of company stock worth $77,553,447 in the last 90 days. Corporate insiders own 19.95% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of HOOD. Vanguard Group Inc. increased its stake in shares of Robinhood Markets by 1.4% in the fourth quarter. Vanguard Group Inc. now owns 95,771,497 shares of the company’s stock valued at $10,831,756,000 after buying an additional 1,334,443 shares during the period. State Street Corp boosted its holdings in Robinhood Markets by 2.7% in the fourth quarter. State Street Corp now owns 33,121,452 shares of the company’s stock valued at $3,746,036,000 after acquiring an additional 875,297 shares during the last quarter. Geode Capital Management LLC increased its position in Robinhood Markets by 1.7% during the 4th quarter. Geode Capital Management LLC now owns 21,171,925 shares of the company’s stock valued at $2,386,944,000 after purchasing an additional 356,902 shares during the period. Morgan Stanley raised its holdings in Robinhood Markets by 23.9% during the 4th quarter. Morgan Stanley now owns 10,683,776 shares of the company’s stock worth $1,208,335,000 after purchasing an additional 2,061,832 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of Robinhood Markets in the 4th quarter worth approximately $1,202,160,000. 93.27% of the stock is owned by institutional investors and hedge funds.

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.