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

Robinhood Markets, Inc. (NASDAQ:HOOD)’s stock price fell 1.7% during trading on Tuesday after Needham & Company LLC lowered their price target on the stock from $145.00 to $135.00. Needham & Company LLC currently has a buy rating on the stock. Robinhood Markets traded as low as $115.18 and last traded at $115.45. 16,330,076 shares changed hands during trading, a decline of 57% from the average session volume of 38,401,141 shares. The stock had previously closed at $117.43.

Other equities analysts also recently issued reports about the company. Truist Financial initiated coverage on Robinhood Markets in a research report on Wednesday, December 17th. They issued a “buy” rating and a $155.00 target price on the stock. Compass Point reaffirmed a “buy” rating on shares of Robinhood Markets in a report on Monday, October 27th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Robinhood Markets in a report on Monday, December 22nd. Cantor Fitzgerald decreased their price objective on shares of Robinhood Markets from $155.00 to $152.00 and set an “overweight” rating for the company in a research note on Thursday, December 11th. Finally, The Goldman Sachs Group upped their price objective on shares of Robinhood Markets from $134.00 to $152.00 and gave the company a “buy” rating in a report on Tuesday, September 30th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Robinhood Markets presently has an average rating of “Moderate Buy” and an average target price of $136.80.

Insider Activity

In related news, insider Daniel Martin Gallagher, Jr. sold 120,000 shares of the business’s stock in a transaction on Wednesday, December 3rd. The shares were sold at an average price of $132.13, for a total value of $15,855,600.00. Following the completion of the sale, the insider owned 430,012 shares of the company’s stock, valued at approximately $56,817,485.56. The trade was a 21.82% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Steven M. Quirk sold 49,942 shares of the company’s stock in a transaction dated Wednesday, December 3rd. The stock was sold at an average price of $131.15, for a total transaction of $6,549,893.30. Following the transaction, the insider owned 54,496 shares of the company’s stock, valued at approximately $7,147,150.40. This trade represents a 47.82% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 3,686,763 shares of company stock worth $475,848,059 in the last ninety days. 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: Wall Street remains broadly bullish: multiple recent buy/outperform ratings and a median analyst price target around $154 reinforce upside narratives for HOOD. Robinhood Markets, Inc. Stock (HOOD) Opinions on 2025 Performance Surge
• Positive Sentiment: Large institutional buying (Vanguard, State Street, BlackRock increases) signals strong demand and can support higher valuations and liquidity. Robinhood Markets, Inc. Stock (HOOD) Opinions on 2025 Performance Surge
• Positive Sentiment: Industry write-ups and fintech roundups (Zacks, Motley Fool comparisons) continue to list HOOD as a 2026 buy/fintech pick, citing new products, crypto initiatives and prediction-market traction as growth drivers. 4 Stocks to Buy for 2026 That Are Better Bets Than Crypto
• Neutral Sentiment: DraftKings’ entry into prediction markets broadens competition but also validates the market opportunity; investors will watch user adoption and revenue contribution rather than treat the move as purely negative. DraftKings Launches Prediction Markets: Analysts Eye 30% Upside
• Neutral Sentiment: Macro stories on prediction markets (large total addressable market estimates) underpin the strategic rationale for Robinhood’s product push but leave timing and monetization uncertain. Prediction Markets Eye $300B in Volume As a Global ‘Truth’ Layer
• Negative Sentiment: Heavy insider selling is a major overhang — founders and several top execs have only sold shares (many large disposals reported), which can spook investors about near-term conviction by management. Robinhood Markets, Inc. Stock (HOOD) Opinions on 2025 Performance Surge
• Negative Sentiment: Analyst target cut: Needham trimmed its price target (from $145 to $135), a sign that some sell‑side shops are tightening near‑term expectations even while maintaining buy stances. Finviz (Needham price-target note)
• Negative Sentiment: Regulatory and legal risk around prediction markets remains unresolved; states and regulators could limit product rollouts or add compliance costs, which raises execution risk for expected revenue streams. DraftKings Launches Prediction Markets: Analysts Eye 30% Upside

Institutional Investors Weigh In On Robinhood Markets

A number of large investors have recently modified their holdings of HOOD. Hantz Financial Services Inc. boosted its stake in Robinhood Markets by 120.3% during the second quarter. Hantz Financial Services Inc. now owns 271 shares of the company’s stock worth $25,000 after buying an additional 148 shares during the last quarter. Valley National Advisers Inc. boosted its position in shares of Robinhood Markets by 113.6% during the 3rd quarter. Valley National Advisers Inc. now owns 188 shares of the company’s stock valued at $26,000 after acquiring an additional 100 shares during the last quarter. Golden State Wealth Management LLC grew its holdings 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 valued at $27,000 after purchasing an additional 99 shares during the period. Smithfield Trust Co purchased a new position in Robinhood Markets during the second quarter worth about $29,000. Finally, Stonehage Fleming Financial Services Holdings Ltd acquired a new position in Robinhood Markets in the 3rd quarter valued at about $29,000. Hedge funds and other institutional investors own 93.27% of the company’s stock.

Robinhood Markets Stock Performance

The firm has a market cap of $103.81 billion, a PE ratio of 47.90, a PEG ratio of 2.16 and a beta of 2.43. The firm’s 50 day moving average price is $127.43 and its two-hundred day moving average price is $116.07.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings data on Wednesday, November 5th. The company reported $0.61 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.20. The company had revenue of $1.27 billion during the quarter, compared to analyst estimates of $1.15 billion. Robinhood Markets had a return on equity of 21.74% and a net margin of 52.19%.The firm’s revenue for the quarter was up 100.0% compared to the same quarter last year. During the same period in the prior year, the business posted $0.17 earnings per share. On average, analysts forecast that Robinhood Markets, Inc. will post 1.35 earnings per share for the current year.

About Robinhood Markets

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.