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

Robinhood Markets, Inc. (NASDAQ:HOOD) gapped down before the market opened on Wednesday after Wells Fargo & Company lowered their price target on the stock from $120.00 to $100.00. The stock had previously closed at $94.56, but opened at $89.23. Wells Fargo & Company currently has an equal weight rating on the stock. Robinhood Markets shares last traded at $91.1520, with a volume of 10,013,003 shares trading hands.

Other equities analysts also recently issued research reports about the stock. The Goldman Sachs Group raised their price objective on shares of Robinhood Markets from $144.00 to $145.00 and gave the stock a “buy” rating in a report on Tuesday, September 29th. Loop Capital set a $135.00 target price on shares of Robinhood Markets in a report on Tuesday, September 29th. Benchmark upgraded shares of Robinhood Markets to a “strong-buy” rating in a research report on Wednesday, September 9th. Wall Street Zen upgraded shares of Robinhood Markets from a “sell” rating to a “hold” rating in a research note on Saturday. Finally, Compass Point lifted their price target on shares of Robinhood Markets from $126.00 to $145.00 and gave the stock a “buy” rating in a research note on Friday, October 2nd. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Robinhood Markets has an average rating of “Moderate Buy” and a consensus target price of $128.54.

Insider Activity

In related news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $113.71, for a total value of $1,137,100.00. Following the completion of the sale, the insider directly owned 499,943 shares of the company’s stock, valued at approximately $56,848,518.53. This represents a 1.96% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Tenev sold 375,000 shares of the stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $113.72, for a total transaction of $42,645,000.00. Following the completion of the sale, the chief executive officer directly owned 375,000 shares of the company’s stock, valued at $42,645,000. This represents a 50.00% 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 quarter, insiders sold 1,091,347 shares of company stock worth $128,447,880. 13.48% of the stock is currently owned by corporate insiders.

Key Stories Impacting Robinhood Markets

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

• Positive Sentiment: Robinhood reported record quarterly revenue of approximately $1.42 billion, up about 12% year over year. Adjusted earnings of $0.60 per share exceeded the $0.56 consensus estimate, while net deposits reached $16 billion and Robinhood Gold subscribers rose to a record 5.2 million. Robinhood Reports Third Quarter 2026 Results
• Positive Sentiment: Strong options, equity and prediction-market activity helped offset cryptocurrency weakness. Event-contract trading reached a record, and the company said 14 business lines now generate at least $100 million in annualized revenue, supporting its strategy to diversify beyond crypto. Robinhood Q3 Highlights
• Positive Sentiment: Analysts remain broadly constructive. Citizens JMP reaffirmed “market outperform” with a $165 target, while Rosenblatt and BTIG maintained “buy” ratings with $135 targets. KeyCorp and Scotiabank also kept positive ratings despite lowering their targets to $135 and $124, respectively.
• Positive Sentiment: A partnership with Ripple to expand RLUSD access could broaden Robinhood’s stablecoin, institutional-market and treasury-management capabilities. Ripple strikes deal with Robinhood
• Neutral Sentiment: Several firms reduced price targets, including Truist to $125 and Needham to $116. The cuts indicate more cautious near-term assumptions, although each firm retained a buy-equivalent rating.
• Negative Sentiment: Crypto revenue declined 55% year over year to roughly $120 million as cryptocurrency markets cooled. Reported diluted EPS of $0.51 fell short of some Wall Street estimates, and revenue was slightly below consensus. Robinhood shares fall as crypto markets chill drives profit miss
• Negative Sentiment: Robinhood did not provide a 2026 outlook for total operating expenses, increasing uncertainty about margins. The Ohio Casino Control Commission also issued a cease-and-desist letter demanding that the company stop offering sports-related event contracts in the state.
• Negative Sentiment: Reports of substantial insider selling added pressure and may reinforce concerns about valuation and shareholder confidence.

Hedge Funds Weigh In On Robinhood Markets

A number of hedge funds have recently modified their holdings of the company. C M Bidwell & Associates Ltd. purchased a new stake in shares of Robinhood Markets in the second quarter worth $27,000. James T. Borello RIA bought a new stake in shares of Robinhood Markets during the 3rd quarter valued at $29,000. Cassaday & Co Wealth Management LLC purchased a new position in shares of Robinhood Markets during the 1st quarter valued at $33,000. Glen Eagle Advisors LLC lifted its stake in shares of Robinhood Markets by 100.7% during the 1st quarter. Glen Eagle Advisors LLC now owns 568 shares of the company’s stock valued at $39,000 after buying an additional 285 shares in the last quarter. Finally, Continuum Advisory LLC purchased a new position in shares of Robinhood Markets during the 2nd quarter valued at $40,000. 93.27% of the stock is currently owned by institutional investors.

Robinhood Markets Stock Performance

The company has a market cap of $82.36 billion, a P/E ratio of 40.31 and a beta of 2.35. The firm’s fifty day moving average is $108.78 and its two-hundred day moving average is $93.44.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings results on Wednesday, October 28th. The company reported $0.60 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.04. The business had revenue of $1.42 billion during the quarter, compared to analysts’ expectations of $1.44 billion. The company’s quarterly revenue was up 11.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.61 EPS. On average, equities research analysts expect that Robinhood Markets, Inc. will post 2.19 EPS for the current year.

Robinhood Markets Company Profile

Robinhood Markets, Inc is a financial services company that operates a digital brokerage platform. Founded in 2013 by Vlad Tenev and Baiju Bhatt, the company became known for offering commission-free trading and a mobile-first investing experience designed to broaden access to financial markets.

Through its platform, Robinhood provides brokerage services for stocks, exchange-traded funds, options and other investments. Its offerings also include cryptocurrency trading, individual retirement accounts, margin investing, cash management services and Robinhood Gold, a subscription-based product that provides additional features and benefits.