Robinhood Markets (NASDAQ:HOOD) Stock Price Down 3.2% – Time to Sell?

Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock price dropped 3.2% during trading on Tuesday . The stock traded as low as $84.93 and last traded at $87.07. Approximately 36,276,753 shares were traded during trading, an increase of 52% from the average daily volume of 23,888,365 shares. The stock had previously closed at $89.91.

Key Stories Impacting Robinhood Markets

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

• Positive Sentiment: UK product launch could meaningfully expand addressable market — Robinhood rolled out a UK stocks & shares ISA with a 2% cash bonus, zero fees and AI tools, signaling international revenue diversification and new customer acquisition potential. Robinhood Offers New Product Suite in UK: Will It Drive Growth?
• Positive Sentiment: Institutional interest from ARK can support demand — Cathie Wood’s ARK funds added HOOD, which can boost investor confidence and provide a buyer base amid retail-driven volatility. Cathie Wood’s ARK adds Robinhood stock, trims Trade Desk
• Positive Sentiment: Earnings outlook may be constructive — analysts expect continued EPS growth and some forecasts point to a likely beat next quarter, which could re-rate the stock if results and guidance remain strong. Robinhood Markets, Inc. (HOOD) Earnings Expected to Grow: Should You Buy?
• Neutral Sentiment: Retail interest and technical oversold signals attract attention — HOOD is a trending/“most-searched” name and several outlets note it’s deeply oversold, which can produce short-term bounce attempts even while fundamentals remain mixed. Robinhood Stock Is Deep in Oversold Territory on Monday. Should You Buy the Dip?
• Negative Sentiment: Crypto market correction is a near-term revenue headwind — a rout in Bitcoin and broader crypto reduced crypto trading volumes and drove a sharp share decline, underscoring HOOD’s sensitivity to crypto activity. Robinhood stock sinks 10% to 7-month low as crypto correction deepens
• Negative Sentiment: Shares slid sharply amid market-wide crypto weakness and trading slowdowns — multiple outlets cite near-double-digit intraday drops, highlighting how quickly sentiment can swing and hurt near-term performance. Robinhood Shares Slide Nearly 10% Amid Broader Bitcoin And Cryptocurrency Slump
• Negative Sentiment: Analyst risk warnings and structural concerns remain — commentary flags major risks (crypto exposure, reliance on retail trading activity, and regulatory/political issues), which can keep valuation multiples under pressure until visibility improves. Analyst warns 3 major risks for Robinhood

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on HOOD shares. The Goldman Sachs Group reissued a “buy” rating on shares of Robinhood Markets in a research report on Monday, January 5th. KeyCorp raised their target price on shares of Robinhood Markets from $135.00 to $155.00 and gave the stock an “overweight” rating in a research report on Friday, October 31st. Argus started coverage on shares of Robinhood Markets in a report on Friday, January 9th. They issued a “buy” rating and a $145.00 target price on the stock. Piper Sandler reiterated an “overweight” rating on shares of Robinhood Markets in a research note on Monday. Finally, Keefe, Bruyette & Woods raised their price objective on shares of Robinhood Markets from $121.00 to $135.00 and gave the stock a “market perform” rating in a research report on Thursday, November 6th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $136.62.

Robinhood Markets Stock Down 3.2%

The company has a fifty day moving average of $117.53 and a two-hundred day moving average of $119.88. The stock has a market capitalization of $78.29 billion, a price-to-earnings ratio of 36.13, a P/E/G ratio of 1.55 and a beta of 2.44.

Robinhood Markets (NASDAQ:HOOD) last released its earnings results on Wednesday, November 5th. The company reported $0.61 EPS for the quarter, topping the consensus estimate of $0.41 by $0.20. The company had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.15 billion. Robinhood Markets had a net margin of 52.19% and a return on equity of 21.74%. The business’s revenue was up 100.0% on a year-over-year basis. During the same quarter last year, the business earned $0.17 EPS. Equities analysts anticipate that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Insider Transactions at Robinhood Markets

In other Robinhood Markets news, insider Steven M. Quirk sold 49,942 shares of the firm’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $131.15, for a total value of $6,549,893.30. Following the completion of the sale, the insider owned 54,496 shares of the company’s stock, valued at approximately $7,147,150.40. This trade represents a 47.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Jeffrey Tsvi Pinner sold 5,865 shares of the firm’s stock in a transaction dated 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 sale, the chief technology officer owned 26,725 shares of the company’s stock, valued at $3,534,648.50. This trade represents a 18.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 2,805,075 shares of company stock valued at $347,653,564 in the last three months. Insiders own 14.47% of the company’s stock.

Hedge Funds Weigh In On Robinhood Markets

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

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.