Robinhood Markets (NASDAQ:HOOD) Trading Down 1.7% Following Analyst Downgrade

Robinhood Markets, Inc. (NASDAQ:HOOD) shares dropped 1.7% during trading on Thursday after Needham & Company LLC lowered their price target on the stock from $100.00 to $90.00. Needham & Company LLC currently has a buy rating on the stock. Robinhood Markets traded as low as $65.57 and last traded at $68.90. Approximately 23,169,799 shares changed hands during mid-day trading, a decline of 21% from the average daily volume of 29,308,143 shares. The stock had previously closed at $70.11.

A number of other research analysts also recently issued reports on HOOD. Bank of America decreased their price target on 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 research note on Monday, February 9th. Sanford C. Bernstein cut their target price on shares of Robinhood Markets from $160.00 to $130.00 and set an “outperform” rating for the company in a report on Monday. Truist Financial decreased their target price on shares of Robinhood Markets from $130.00 to $120.00 and set a “buy” rating for the company in a research note on Thursday, February 12th. Finally, Zacks Research downgraded shares of Robinhood Markets from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 6th. Eighteen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $117.58.

Insiders Place Their Bets

In other news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $75.49, for a total transaction of $754,900.00. Following the completion of the transaction, the insider directly owned 452,849 shares of the company’s stock, valued at $34,185,571.01. This represents a 2.16% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Jeffrey Tsvi Pinner sold 5,864 shares of the company’s stock in a transaction that occurred on Monday, January 26th. The stock was sold at an average price of $107.48, for a total value of $630,262.72. Following the transaction, the chief technology officer directly owned 9,133 shares of the company’s stock, valued at approximately $981,614.84. The trade was a 39.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 469,268 shares of company stock worth $54,409,454. 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: Banking deposits top $1.5B from ~100K customers, strengthening customer “stickiness,” adding FDIC‑insured balances that diversify revenue away from trading and could stabilize margins. HOOD’s Banking Bet Pays Off With $1.5B in Deposits: Why it Matters
• Neutral Sentiment: Robinhood set its Q1 2026 earnings release for April 28 with a management call — a near-term catalyst that could swing sentiment depending on trading volume, deposits and guidance. Robinhood Markets, Inc. to Announce First Quarter 2026 Results on April 28, 2026
• Neutral Sentiment: Needham trimmed its price target from $100 to $90 but retained a “buy” rating, signaling continued analyst conviction despite near-term concerns. Read More
• Neutral Sentiment: Some brokers (e.g., Sanford Bernstein) revised targets downward in recent notes — mixed signals that keep the stock volatile but still within bullish long‑term narratives. Sanford C. Bernstein Lowers Robinhood Markets (NASDAQ:HOOD) Price Target to $130.00
• Negative Sentiment: Reports of a wave of analyst downgrades tied to slowing retail trading volumes are weighing on sentiment — lower volumes hit Robinhood’s trading‑related revenue the most. Robinhood (HOOD) Stock Faces Wave of Analyst Downgrades Amid Slowing Trading Volumes
• Negative Sentiment: Crypto weakness (Bitcoin pullbacks and fading momentum) has driven selloffs in crypto‑linked names, including HOOD, reducing fee and custody activity tied to digital assets. Bitcoin tumbles, crypto momentum fades as Trump extends Iran timeline
• Negative Sentiment: Competition and product moves at rivals (e.g., Interactive Brokers expanding crypto, Coinbase’s strengths) increase pressure on trading share; Robinhood’s banking gains help, but competitive dynamics remain a risk. IBKR Unveils Unified Crypto Trading Platform for European Investors
• Negative Sentiment: Ongoing legal and regulatory actions — Robinhood sued Washington State over enforcement tied to prediction markets — add regulatory/legal overhang and potential costs. Robinhood Sues Washington State Over Kalshi Lawsuit
• Negative Sentiment: Unusual put activity and broader hedging flows suggest some investors are positioning for further near‑term downside or volatility in HOOD. Huge, Unusual Put Action in Robinhood Stock – A Sign That HOOD Has Bottomed?

Hedge Funds Weigh In On Robinhood Markets

Large investors have recently added to or reduced their stakes in the stock. Empowered Funds LLC increased its stake in shares of Robinhood Markets by 46.7% during the first quarter. Empowered Funds LLC now owns 49,870 shares of the company’s stock worth $2,076,000 after purchasing an additional 15,885 shares in the last quarter. American Century Companies Inc. lifted its stake in Robinhood Markets by 33.0% in the 2nd quarter. American Century Companies Inc. now owns 143,764 shares of the company’s stock valued at $13,461,000 after buying an additional 35,711 shares in the last quarter. Advisors Asset Management Inc. acquired a new stake in Robinhood Markets in the 2nd quarter worth about $315,000. Northwestern Mutual Wealth Management Co. boosted its holdings in Robinhood Markets by 4.9% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 8,357 shares of the company’s stock worth $782,000 after buying an additional 394 shares during the last quarter. Finally, Level Four Advisory Services LLC purchased a new stake in Robinhood Markets during the 2nd quarter worth approximately $292,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

Robinhood Markets Price Performance

The firm has a market cap of $62.03 billion, a price-to-earnings ratio of 33.45, a PEG ratio of 1.56 and a beta of 2.46. The business has a fifty day simple moving average of $80.09 and a 200 day simple moving average of $110.44.

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