Robinhood Markets (NASDAQ:HOOD) Stock Price Down 9% Following Analyst Downgrade

Robinhood Markets, Inc. (NASDAQ:HOOD) shares were down 9% during mid-day 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 mid-day 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 several other research reports. CICC Research assumed coverage on shares of Robinhood Markets in a research note on Monday, October 27th. They set an “outperform” rating and a $155.00 price target on the stock. KeyCorp decreased their target price on Robinhood Markets from $160.00 to $130.00 and set an “overweight” rating on the stock in a report on Monday. Citizens Jmp reiterated a “market outperform” rating and set a $180.00 target price on shares of Robinhood Markets in a research report on Wednesday. Bank of America reduced their price target on Robinhood Markets from $166.00 to $154.00 and set a “buy” rating for the company in a research report on Wednesday, December 10th. Finally, Barclays decreased their price objective on Robinhood Markets from $159.00 to $124.00 and set an “overweight” rating on the stock in a research note on Wednesday. Eighteen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $127.41.

Insider Activity at Robinhood Markets

In other news, insider Steven M. Quirk sold 52,540 shares of the business’s stock in a transaction 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 transaction, the insider owned 27,564 shares of the company’s stock, valued at approximately $2,420,394.84. The trade was a 65.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the company’s stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $87.07, for a total transaction of $870,700.00. Following the transaction, the insider owned 393,612 shares of the company’s stock, valued at approximately $34,271,796.84. This represents a 2.48% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 1,537,615 shares of company stock valued at $182,272,702. Corporate insiders own 19.95% of the company’s stock.

Key Stories 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 Investors Weigh In On Robinhood Markets

Large investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in Robinhood Markets by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 95,771,497 shares of the company’s stock worth $10,831,756,000 after acquiring an additional 1,334,443 shares during the last quarter. State Street Corp grew its holdings in shares of 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 in the last quarter. Geode Capital Management LLC increased its position in Robinhood Markets by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 21,171,925 shares of the company’s stock worth $2,386,944,000 after purchasing an additional 356,902 shares during the last quarter. WCM Investment Management LLC increased its position in Robinhood Markets by 3,615.7% in the second 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 last quarter. Finally, Norges Bank purchased a new stake in Robinhood Markets during the fourth quarter valued at $1,202,160,000. 93.27% of the stock is owned by institutional investors.

Robinhood Markets Price Performance

The firm 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’s 50-day simple moving average is $112.45 and its 200 day simple moving average is $118.97.

Robinhood Markets (NASDAQ:HOOD) last announced its earnings results on Tuesday, February 10th. The company reported $0.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.03. Robinhood Markets had a net margin of 52.19% and a return on equity of 21.74%. 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 prior year, the company earned $1.01 EPS. The business’s revenue was up 26.5% compared to the same quarter last year. Analysts anticipate that Robinhood Markets, Inc. will post 1.35 EPS 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.