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

Robinhood Markets, Inc. (NASDAQ:HOOD) gapped down prior to trading 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 traded.

HOOD has been the topic of several other research reports. Weiss Ratings reissued a “hold (c+)” rating on shares of Robinhood Markets in a report on Monday, December 22nd. Mizuho raised their target price on Robinhood Markets from $145.00 to $172.00 and gave the company an “outperform” rating in a research note on Thursday, November 6th. Bank of America reduced their price target on shares of Robinhood Markets from $166.00 to $154.00 and set a “buy” rating for the company in a report on Wednesday, December 10th. Wolfe Research raised shares of Robinhood Markets from a “peer perform” rating to an “outperform” rating and set a $125.00 price objective on the stock in a report on Monday. Finally, Morgan Stanley lifted their price objective on shares of Robinhood Markets from $146.00 to $147.00 and gave the company an “equal weight” rating in a research report on Monday, December 22nd. Eighteen investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $128.64.

Insider Activity at Robinhood Markets

In related news, CEO Vladimir Tenev sold 375,000 shares of the business’s stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $121.63, for a total transaction of $45,611,250.00. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $87.07, for a total value of $870,700.00. Following the completion of the sale, the insider owned 393,612 shares of the company’s stock, valued at $34,271,796.84. This trade represents a 2.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,537,615 shares of company stock valued at $182,272,702 over the last quarter. Corporate insiders own 19.95% of the company’s stock.

Robinhood Markets News Roundup

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 Trading of Robinhood Markets

Several institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its position in Robinhood Markets by 1.4% in the fourth 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 in the last quarter. State Street Corp grew its stake in shares of Robinhood Markets by 103.2% in the 3rd quarter. State Street Corp now owns 32,246,155 shares of the company’s stock worth $4,617,004,000 after purchasing an additional 16,375,734 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Robinhood Markets by 1.7% in the 4th 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 in the last quarter. WCM Investment Management LLC lifted its stake in Robinhood Markets by 3,615.7% during the second quarter. WCM Investment Management LLC now owns 11,555,160 shares of the company’s stock valued at $1,081,910,000 after purchasing an additional 11,244,182 shares during the last quarter. Finally, Norges Bank bought a new stake in Robinhood Markets during the fourth quarter worth approximately $1,202,160,000. Institutional investors and hedge funds own 93.27% of the company’s stock.

Robinhood Markets Stock Down 11.9%

The stock has a market cap of $67.79 billion, a price-to-earnings ratio of 31.28, 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 released its quarterly earnings data on Tuesday, February 10th. The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.63 by $0.03. Robinhood Markets had a return on equity of 21.74% and a net margin of 52.19%.The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.32 billion. During the same period last year, the company posted $1.01 EPS. The company’s revenue was up 26.5% compared to the same quarter last year. As a group, analysts expect 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.