Robinhood Markets (NASDAQ:HOOD) Trading Down 3.6% on Analyst Downgrade

Robinhood Markets, Inc. (NASDAQ:HOOD) shares fell 3.6% during mid-day trading on Friday after Mizuho lowered their price target on the stock from $135.00 to $110.00. Mizuho currently has an outperform rating on the stock. Robinhood Markets traded as low as $72.80 and last traded at $73.39. 33,185,855 shares were traded during mid-day trading, an increase of 10% from the average session volume of 30,219,871 shares. The stock had previously closed at $76.12.

HOOD has been the subject of several other research reports. Wall Street Zen downgraded shares of Robinhood Markets from a “hold” rating to a “sell” rating in a research report on Saturday, February 14th. Needham & Company LLC decreased their price target on Robinhood Markets from $135.00 to $100.00 and set a “buy” rating for the company in a research note on Wednesday, February 11th. Barclays lowered their price objective on Robinhood Markets from $159.00 to $124.00 and set an “overweight” rating for the company in a report on Wednesday, February 11th. New Street Research set a $122.00 price objective on Robinhood Markets in a research note on Thursday, March 5th. Finally, Cantor Fitzgerald reduced their target price on Robinhood Markets from $130.00 to $100.00 and set an “overweight” rating on the stock in a report on Tuesday, February 17th. Seventeen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $120.59.

Insider Buying and Selling at Robinhood Markets

In related news, 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. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Steven M. Quirk sold 52,540 shares of Robinhood Markets stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $87.81, for a total transaction of $4,613,537.40. Following the completion of the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 475,132 shares of company stock valued at $55,127,149 over the last quarter. Company insiders own 14.47% of the company’s stock.

Key Stories Impacting Robinhood Markets

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

• Positive Sentiment: February operating metrics show rising engagement: Robinhood reported year-over-year increases in equity and options DARTs and a 68% YoY surge in platform assets to $314.2B, driven by strong deposits and higher trading activity — a signal of durable customer demand and monetization potential. Read More.
• Positive Sentiment: Prediction markets and “SuperApp” strategy are contributing incremental revenue: MarketBeat highlights that prediction-markets revenue is annualizing at about $435M and is embedded in a broader $4.5B revenue base — supporting upside to revenue diversification and long-term growth. Read More.
• Positive Sentiment: Recent quarterly results remained solid: management reported record revenue and EPS beats (referenced in the MarketBeat coverage), reinforcing the case that RH is expanding revenue streams while maintaining profitability metrics. Read More.
• Neutral Sentiment: Analyst price-target reset but upbeat rating: Mizuho trimmed its HOOD PT from $135 to $110 but kept an “outperform” call — the lower target can cap near-term upside while the rating still signals continued analyst conviction. Read More.
• Neutral Sentiment: Market coverage and idea pieces highlight HOOD as a thematic play (prediction markets, retail trading) but note the stock has been volatile and down YTD — themes that attract interest but also keep sentiment mixed. Read More.
• Negative Sentiment: Competitive and valuation pressure vs. larger brokers: comparative analyses (HOOD vs IBKR) argue Interactive Brokers’ diversification and lower valuation may make it the steadier choice if crypto/trading volumes waver — a relative-risk narrative that can weigh on HOOD multiple. Read More.
• Negative Sentiment: Volatility and drawdown risk highlighted: a Forbes analysis reminds investors that HOOD has experienced large drawdowns in systemic shocks (~-37% average), underscoring the stock’s sensitivity to market stress and crypto turbulence. That risk premium can pressure the share price in uncertain markets. Read More.

Hedge Funds Weigh In On Robinhood Markets

Hedge funds and other institutional investors have recently modified their holdings of the stock. Valley National Advisers Inc. raised its holdings in Robinhood Markets by 113.6% during the 3rd quarter. Valley National Advisers Inc. now owns 188 shares of the company’s stock worth $26,000 after buying an additional 100 shares during the period. Sound Income Strategies LLC boosted its holdings in shares of Robinhood Markets by 152.6% in the fourth quarter. Sound Income Strategies LLC now owns 240 shares of the company’s stock worth $26,000 after buying an additional 145 shares during the period. CYBER HORNET ETFs LLC boosted its holdings in shares of Robinhood Markets by 527.8% in the fourth quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company’s stock worth $26,000 after buying an additional 190 shares during the period. Golden State Wealth Management LLC increased its position in shares of Robinhood Markets by 107.6% in the third quarter. Golden State Wealth Management LLC now owns 191 shares of the company’s stock worth $27,000 after acquiring an additional 99 shares in the last quarter. Finally, Elyxium Wealth LLC acquired a new stake in shares of Robinhood Markets during the fourth quarter valued at approximately $27,000. Institutional investors and hedge funds own 93.27% of the company’s stock.

Robinhood Markets Price Performance

The firm has a market cap of $66.07 billion, a price-to-earnings ratio of 35.63, a price-to-earnings-growth ratio of 1.78 and a beta of 2.47. The stock’s fifty day moving average price is $92.17 and its 200-day moving average price is $114.00.

Robinhood Markets (NASDAQ:HOOD) last posted its quarterly earnings data on Tuesday, February 10th. The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.63 by $0.03. Robinhood Markets had a net margin of 42.10% and a return on equity of 22.32%. The firm had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.32 billion. During the same period in the previous year, the company posted $1.01 EPS. The company’s quarterly revenue was up 26.5% compared to the same quarter last year. As a group, equities research analysts predict that Robinhood Markets, Inc. will post 1.35 EPS for the current fiscal year.

About Robinhood Markets

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.