Robinhood Markets (NASDAQ:HOOD) Stock Price Down 4.3% Following Analyst Downgrade

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) dropped 4.3% during trading on Friday after The Goldman Sachs Group lowered their price target on the stock from $128.00 to $115.00. The Goldman Sachs Group currently has a buy rating on the stock. Robinhood Markets traded as low as $76.61 and last traded at $77.86. 18,328,702 shares changed hands during mid-day trading, a decline of 30% from the average daily volume of 26,181,924 shares. The stock had previously closed at $81.35.

A number of other brokerages also recently weighed in on HOOD. JPMorgan Chase & Co. lowered their target price on shares of Robinhood Markets from $115.00 to $114.00 and set a “neutral” rating for the company in a research note on Wednesday, October 28th. Weiss Ratings restated a “hold (c)” rating on shares of Robinhood Markets in a report on Monday, September 21st. Benchmark raised shares of Robinhood Markets to a “strong-buy” rating in a research note on Wednesday, September 9th. Cantor Fitzgerald reduced their price objective on shares of Robinhood Markets from $150.00 to $120.00 and set an “overweight” rating for the company in a report on Friday, October 30th. Finally, Wells Fargo & Company decreased their target price on shares of Robinhood Markets from $120.00 to $100.00 and set an “equal weight” rating for the company in a research report on Wednesday, October 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Robinhood Markets currently has an average rating of “Moderate Buy” and an average target price of $124.01.

Insider Activity at Robinhood Markets

In related news, CFO Shiv Verma sold 11,472 shares of the business’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $110.42, for a total value of $1,266,738.24. Following the sale, the chief financial officer directly owned 56,858 shares in the company, valued at approximately $6,278,260.36. The trade was a 16.79% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven M. Quirk sold 24,416 shares of the company’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $120.33, for a total transaction of $2,937,977.28. Following the sale, the insider owned 77,839 shares in the company, valued at $9,366,366.87. The trade was a 23.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,045,503 shares of company stock valued at $123,905,130 in the last 90 days. 13.48% of the stock is currently owned by company insiders.

Key Headlines Impacting Robinhood Markets

These are some of the HOOD headlines that stood out recently:

• Positive Sentiment: October event-contract trading rose 136% year over year to about 5.9 billion contracts. The product has become a meaningful revenue source, potentially helping offset weakness in crypto and other trading. Article: Robinhood’s Prediction Market Bet Is Paying Off
• Positive Sentiment: Net deposits reached about $15.1 billion in October; funded customers increased by roughly 130,000 from September to 28.9 million. Margin balances also climbed 39% year over year to $23 billion, supporting potential recurring interest income. Article: Robinhood Reports October 2026 Operating Data
• Negative Sentiment: The Supreme Court will hear Robinhood’s effort to dismiss an investor lawsuit alleging the company omitted interim financial data from its 2021 IPO filing. The case adds legal uncertainty; Robinhood is seeking to overturn a ruling that revived the suit. Article: Supreme Court to Hear Robinhood IPO Lawsuit Appeal

Institutional Investors Weigh In On Robinhood Markets

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. C M Bidwell & Associates Ltd. bought a new position in Robinhood Markets in the second quarter valued at $27,000. James T. Borello RIA bought a new stake in Robinhood Markets during the third quarter worth about $29,000. Cassaday & Co Wealth Management LLC bought a new stake in Robinhood Markets during the first quarter worth about $33,000. Glen Eagle Advisors LLC boosted its holdings in shares of Robinhood Markets by 100.7% in the 1st quarter. Glen Eagle Advisors LLC now owns 568 shares of the company’s stock worth $39,000 after purchasing an additional 285 shares in the last quarter. Finally, Continuum Advisory LLC purchased a new position in shares of Robinhood Markets in the 2nd quarter worth about $40,000. 93.27% of the stock is owned by hedge funds and other institutional investors.

Robinhood Markets Price Performance

The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.26. The stock has a market capitalization of $70.11 billion, a PE ratio of 35.88, a PEG ratio of 1.88 and a beta of 2.56. The business has a fifty day moving average price of $104.19 and a 200-day moving average price of $91.82.

Robinhood Markets (NASDAQ:HOOD) last released its earnings results on Wednesday, October 28th. The company reported $0.60 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.04. The company had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $1.44 billion. Robinhood Markets had a return on equity of 21.49% and a net margin of 39.04%. Robinhood Markets’s quarterly revenue was up 11.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.61 EPS. Research analysts expect that Robinhood Markets, Inc. will post 2.10 EPS for the current fiscal year.

About Robinhood Markets

Robinhood Markets, Inc. operates a digital financial services platform that gives customers access to investing and financial products through its website and mobile app. Its offerings include trading in stocks, exchange-traded funds, options and cryptocurrencies, as well as retirement accounts and cash-management services. Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood built its business around making financial services more accessible through a mobile-first platform. The company is headquartered in Menlo Park, California, and serves customers in the United States and select international markets.