Barclays Issues Pessimistic Forecast for Robinhood Markets (NASDAQ:HOOD) Stock Price

Key Points

• Barclays cut Robinhood’s price target from $132 to $115 while maintaining an “overweight” rating, implying roughly 26% upside from the reported $91.04 share price.
• Analyst sentiment remains broadly positive: Robinhood has a consensus “Moderate Buy” rating and an average price target of $128.01, despite several firms recently adjusting their targets.
• Shares fell 3.7% as investors weighed mixed results, including earnings that topped estimates but revenue slightly below consensus, continued crypto weakness, regulatory concerns around prediction markets, and substantial insider selling.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) had its target price lowered by equities researchers at Barclays from $132.00 to $115.00 in a note issued to investors on Wednesday, Benzinga reports. The firm presently has an "overweight" rating on the stock. Barclays's price objective would suggest a potential upside of 26.32% from the stock's current price.

Several other equities research analysts also recently weighed in on the stock. Deutsche Bank Aktiengesellschaft dropped their target price on shares of Robinhood Markets from $138.00 to $134.00 and set a "buy" rating for the company in a research report on Tuesday, September 29th. Morgan Stanley boosted their price objective on Robinhood Markets from $150.00 to $160.00 and gave the company an "overweight" rating in a report on Friday, October 9th. Evercore initiated coverage on Robinhood Markets in a research note on Monday, October 12th. They set an "outperform" rating and a $130.00 price objective on the stock. Bank of America increased their target price on Robinhood Markets from $140.00 to $156.00 and gave the stock a "buy" rating in a report on Monday, October 5th. Finally, Citigroup reiterated a "market outperform" rating on shares of Robinhood Markets in a research report on Friday, October 9th. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $128.01.

Robinhood Markets Stock Down 3.7%

Shares of Robinhood Markets stock traded down $3.52 on Wednesday, hitting $91.04. 22,297,681 shares of the company's stock traded hands, compared to its average volume of 26,533,896. The stock has a market cap of $81.85 billion, a P/E ratio of 40.10 and a beta of 2.35. The firm's 50-day moving average is $108.78 and its 200 day moving average is $93.44. Robinhood Markets has a 52-week low of $63.51 and a 52-week high of $150.47.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) 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 company had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $1.44 billion. During the same quarter last year, the firm posted $0.61 EPS. The firm's quarterly revenue was up 11.5% on a year-over-year basis. Equities research analysts forecast that Robinhood Markets will post 2.19 EPS for the current year.

Insider Buying and Selling 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, 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 transaction, the chief executive officer owned 375,000 shares in the company, valued at $42,645,000. The trade was a 50.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel Gallagher, Jr. sold 10,000 shares of the company's stock in a transaction on Monday, October 5th. The stock was sold at an average price of $113.71, for a total value of $1,137,100.00. Following the transaction, the insider owned 499,943 shares of the company's stock, valued at approximately $56,848,518.53. The trade was a 1.96% 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. In the last three months, insiders sold 1,091,347 shares of company stock worth $128,447,880. Corporate insiders own 13.48% of the company's stock.

Hedge Funds Weigh In On Robinhood Markets

Institutional investors have recently modified their holdings of the company. Crossmark Global Holdings Inc. increased its holdings in shares of Robinhood Markets by 0.4% in the 3rd quarter. Crossmark Global Holdings Inc. now owns 27,405 shares of the company's stock worth $3,083,000 after acquiring an additional 102 shares during the period. Lake Street Private Wealth LLC boosted its stake in Robinhood Markets by 0.3% during the 3rd quarter. Lake Street Private Wealth LLC now owns 43,899 shares of the company's stock valued at $4,939,000 after purchasing an additional 114 shares during the period. Parkside Financial Bank & Trust grew its position in Robinhood Markets by 11.9% in the 2nd quarter. Parkside Financial Bank & Trust now owns 1,089 shares of the company's stock worth $109,000 after purchasing an additional 116 shares during the last quarter. Root Financial Partners LLC grew its position in Robinhood Markets by 5.4% in the 3rd quarter. Root Financial Partners LLC now owns 2,510 shares of the company's stock worth $282,000 after purchasing an additional 129 shares during the last quarter. Finally, Brookstone Capital Management increased its stake in shares of Robinhood Markets by 2.5% in the third quarter. Brookstone Capital Management now owns 5,230 shares of the company's stock valued at $588,000 after purchasing an additional 129 shares during the period. Institutional investors own 93.27% of the company's stock.

Key Robinhood Markets News

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. Robinhood: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Underlying growth remained strong: trailing 12-month net deposits reached $71 billion, quarterly net deposits were $16 billion, platform assets rose 19% to $396 billion, and Robinhood Gold subscribers reached a record 5.2 million.
• Positive Sentiment: Prediction markets and other newer offerings are gaining traction. Event-contract volume reached a record 16.4 billion contracts, while transaction-based businesses and options helped offset some crypto weakness. Bernstein believes prediction markets could become a $1.7 billion revenue business by 2028. Robinhood to rally on prediction markets and new offerings
• Positive Sentiment: Several analysts maintained positive ratings despite reducing price targets. Citizens JMP reaffirmed an outperform rating with a $165 target, while KeyCorp, Truist, Needham and others retained overweight or buy ratings. A new Ripple partnership could also expand Robinhood’s stablecoin, institutional-trading and treasury-management capabilities. Ripple strikes deal with Robinhood
• Neutral Sentiment: Robinhood said it now has 14 business lines generating at least $100 million in annualized revenue, supporting its strategy of becoming a broader financial-services platform. However, management did not provide a 2026 outlook for total operating expenses, limiting visibility into future margins.
• Negative Sentiment: Crypto revenue fell 55% year over year to about $120 million as subdued digital-asset markets reduced trading activity. Interest income and tighter trading spreads also weighed on results.
• Negative Sentiment: Diluted EPS declined 16% year over year to $0.51 and was below some Wall Street estimates, while reported revenue was slightly below the approximately $1.44 billion consensus. Rising costs further pressured profitability. Robinhood shares fall as crypto markets chill drives profit miss
• Negative Sentiment: The Ohio Casino Control Commission issued a cease-and-desist letter demanding that Robinhood stop offering sports-related event contracts in the state, raising regulatory risks for a key growth initiative. Continued insider selling has added to investor concerns.

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.

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