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

Robinhood Markets, Inc. (NASDAQ:HOOD) shares were down 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. Approximately 33,185,855 shares changed hands during trading, an increase of 10% from the average daily volume of 30,219,871 shares. The stock had previously closed at $76.12.

HOOD has been the subject of several other reports. Wolfe Research raised shares of Robinhood Markets from a “peer perform” rating to an “outperform” rating and set a $125.00 price objective for the company in a research note on Monday, February 9th. Sanford C. Bernstein reiterated an “outperform” rating on shares of Robinhood Markets in a report on Wednesday, February 11th. Wall Street Zen lowered Robinhood Markets from a “hold” rating to a “sell” rating in a research note on Saturday, February 14th. Compass Point restated a “buy” rating on shares of Robinhood Markets in a report on Wednesday, February 11th. Finally, Zacks Research lowered Robinhood Markets from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, January 6th. Seventeen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $120.59.

Insider Buying and Selling at Robinhood Markets

In other news, CTO Jeffrey Tsvi Pinner sold 5,864 shares of the stock in a transaction dated Monday, January 26th. The stock was sold at an average price of $107.48, for a total value of $630,262.72. Following the completion of the sale, the chief technology officer owned 9,133 shares in the company, valued at approximately $981,614.84. This trade represents a 39.10% 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 link. Also, CEO Vladimir Tenev sold 375,000 shares of the firm’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $121.63, for a total value of $45,611,250.00. The SEC filing for this sale provides additional information. Insiders sold a total of 475,132 shares of company stock valued at $55,127,149 in 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.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in HOOD. Valley National Advisers Inc. lifted its holdings in Robinhood Markets by 113.6% in 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 in the last quarter. Sound Income Strategies LLC grew its stake in shares of Robinhood Markets by 152.6% during the fourth quarter. Sound Income Strategies LLC now owns 240 shares of the company’s stock valued at $26,000 after acquiring an additional 145 shares in the last quarter. CYBER HORNET ETFs LLC increased its position in shares of Robinhood Markets by 527.8% during the fourth quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company’s stock worth $26,000 after acquiring an additional 190 shares during the last quarter. Golden State Wealth Management LLC lifted its stake 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 purchased a new position in Robinhood Markets in the fourth quarter valued at about $27,000. 93.27% of the stock is owned by institutional investors and hedge funds.

Robinhood Markets Price Performance

The business has a fifty day moving average of $92.17 and a 200 day moving average of $114.00. The stock has a market cap of $66.07 billion, a PE ratio of 35.63, a P/E/G ratio of 1.78 and a beta of 2.47.

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