Robinhood Markets (NASDAQ:HOOD) Shares Gap Down on Analyst Downgrade

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) gapped down before the market opened on Wednesday after Barclays lowered their price target on the stock from $159.00 to $124.00. The stock had previously closed at $85.60, but opened at $77.88. Barclays currently has an overweight rating on the stock. Robinhood Markets shares last traded at $75.2760, with a volume of 24,882,510 shares changing hands.

A number of other equities analysts have also commented on HOOD. Morgan Stanley raised their price objective on shares of Robinhood Markets from $146.00 to $147.00 and gave the stock an “equal weight” rating in a research note on Monday, December 22nd. Piper Sandler restated an “overweight” rating on shares of Robinhood Markets in a report on Monday, February 2nd. Weiss Ratings reiterated a “hold (c+)” rating on shares of Robinhood Markets in a report on Monday, December 22nd. KeyCorp dropped their price target on Robinhood Markets from $160.00 to $130.00 and set an “overweight” rating on the stock in a research report on Monday. Finally, CICC Research began coverage on Robinhood Markets in a research report on Monday, October 27th. They set an “outperform” rating and a $155.00 price objective for the company. Eighteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Robinhood Markets presently has an average rating of “Moderate Buy” and a consensus price target of $128.64.

Insider Buying and Selling at Robinhood Markets

In related news, CEO Vladimir Tenev sold 375,000 shares of Robinhood Markets stock in a transaction 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 document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Steven M. Quirk sold 52,540 shares of the company’s stock in a transaction 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 sale, the insider owned 27,564 shares of the company’s stock, valued at $2,420,394.84. This represents a 65.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,537,615 shares of company stock valued at $182,272,702 over the last three months. 19.95% of the stock is owned by insiders.

Robinhood Markets News Summary

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

• Positive Sentiment: Q4 EPS beat consensus (GAAP diluted EPS $0.66 vs. ~$0.63 expected) and record full‑year results (2025 revenue $4.5B, diluted EPS $2.05), showing strong profitability and top‑line momentum. Earnings Release
• Positive Sentiment: Operating metrics strengthened: record net deposits ($68B for 2025), funded customers rose to 27M, Robinhood Gold subscribers hit 4.2M — all supporting recurring revenue and cross‑sell potential. Operating Metrics
• Positive Sentiment: Management is prioritizing prediction markets (record event contracts traded) and completed a JV/transaction to support a CFTC‑licensed exchange/clearing (Rothera / MIAXdx acquisition), signaling a strategic new revenue stream. Prediction Markets
• Neutral Sentiment: Company gave an explicit 2026 expense plan (Adjusted Operating Expenses & SBC ~$2.6B–$2.725B) but withheld a reconciled GAAP outlook because of uncertainties (credit losses, regulatory costs), leaving guidance clarity limited. Guidance & Expense Plan
• Neutral Sentiment: CFO transition: Shiv Verma named CFO (effective Feb 6), with Jason Warnick serving as advisor until September — routine but worth watching for execution risk. CFO Transition
• Negative Sentiment: Q4 revenue missed Street expectations ($1.28B reported vs. ~$1.32B consensus) and crypto revenue fell sharply (~38% y/y; Robinhood app crypto volumes down ~52% y/y), which drove the main investor concern. Revenue Miss & Crypto Decline
• Negative Sentiment: Shares declined in after‑hours/early trading after the release (reports of falls up to ~6–8%), reflecting investor focus on the revenue miss and crypto softness despite the EPS beat. After‑Hours Reaction
• Negative Sentiment: Costs rose (total operating expenses +38% y/y in Q4) and net income decreased q/q (Q4 net income down vs. Q4 2024), increasing scrutiny on margins if growth investments continue. Expense Increase
• Negative Sentiment: Analyst target moves were mixed: some upgrades (Wolfe, Cantor) but Needham trimmed its price target from $135 to $100 — and at least one note flagged a pessimistic forecast — adding conflicting signals for near‑term sentiment. Analyst Target Changes

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Jennison Associates LLC bought a new stake in Robinhood Markets in the 3rd quarter valued at $322,823,000. New York Life Investment Management LLC bought a new position in shares of Robinhood Markets during the 3rd quarter worth about $14,989,000. Allstate Corp acquired a new position in shares of Robinhood Markets during the third quarter valued at about $3,860,000. Principal Financial Group Inc. lifted its stake in shares of Robinhood Markets by 909.9% in the third quarter. Principal Financial Group Inc. now owns 831,466 shares of the company’s stock valued at $119,049,000 after buying an additional 749,132 shares during the period. Finally, New Wave Wealth Advisors LLC grew its position in Robinhood Markets by 479.4% during the third quarter. New Wave Wealth Advisors LLC now owns 13,331 shares of the company’s stock worth $1,909,000 after buying an additional 11,030 shares in the last quarter. Institutional investors and hedge funds own 93.27% of the company’s stock.

Robinhood Markets Price Performance

The firm has a 50 day moving average of $112.45 and a 200-day moving average of $118.97. The stock has a market capitalization of $67.79 billion, a P/E ratio of 31.28, a price-to-earnings-growth ratio of 1.34 and a beta of 2.43.

Robinhood Markets (NASDAQ:HOOD) last announced its quarterly earnings data on Tuesday, February 10th. The company reported $0.66 EPS for the quarter, topping analysts’ consensus estimates of $0.63 by $0.03. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.32 billion. Robinhood Markets had a return on equity of 21.74% and a net margin of 52.19%.The company’s quarterly revenue was up 26.5% on a year-over-year basis. During the same quarter last year, the company earned $1.01 EPS. As a group, equities analysts expect that Robinhood Markets, Inc. will post 1.35 earnings per share for the current 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.