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

Key Points

• Morgan Stanley cut its price target on Robinhood to $95 from $147, keeping an "equal weight" rating — the new target implies about a 35% upside from the stock's previous close but signals a more cautious view.
• Several other firms have trimmed targets or ratings recently (including KBW, Barclays, Truist and Piper Sandler), though the sell‑side consensus remains a Moderate Buy with an average price target of $110.25.
• Insider selling has been significant — including the CEO's sale of ~375,000 shares — with insiders offloading 469,239 shares (~$34.2M) in the last three months, a factor likely weighing on near‑term sentiment.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) had its price objective dropped by equities research analysts at Morgan Stanley from $147.00 to $95.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's target price indicates a potential upside of 35.48% from the stock's previous close.

Other analysts have also issued research reports about the stock. Citizens Jmp lowered their price target on shares of Robinhood Markets from $180.00 to $155.00 and set a "market outperform" rating for the company in a report on Friday. Keefe, Bruyette & Woods initiated coverage on shares of Robinhood Markets in a research note on Wednesday. They issued a "market perform" rating and a $75.00 price objective on the stock. Wall Street Zen cut shares of Robinhood Markets from a "hold" rating to a "sell" rating in a research note on Saturday, February 14th. Truist Financial reduced their price objective on shares of Robinhood Markets from $130.00 to $120.00 and set a "buy" rating on the stock in a research note on Thursday, February 12th. Finally, Piper Sandler reduced their price objective on shares of Robinhood Markets from $155.00 to $135.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 11th. Eighteen equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $110.25.

Robinhood Markets Price Performance

Shares of Robinhood Markets stock opened at $70.12 on Friday. The firm has a market cap of $63.13 billion, a P/E ratio of 34.04, a P/E/G ratio of 1.73 and a beta of 2.46. The firm has a 50 day simple moving average of $75.88 and a 200 day simple moving average of $108.44. Robinhood Markets has a fifty-two week low of $37.78 and a fifty-two week high of $153.86.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its quarterly earnings results on Tuesday, February 10th. The company reported $0.66 earnings per share for the quarter, beating analysts' consensus estimates of $0.63 by $0.03. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.32 billion. Robinhood Markets had a net margin of 42.10% and a return on equity of 22.32%. Robinhood Markets's revenue for the quarter was up 26.5% compared to the same quarter last year. During the same quarter last year, the business posted $1.01 earnings per share. On average, sell-side analysts expect that Robinhood Markets will post 1.35 EPS for the current year.

Insider Activity

In other news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of Robinhood Markets stock in a transaction on Monday, April 6th. The shares were sold at an average price of $69.85, for a total transaction of $698,500.00. Following the transaction, the insider directly owned 442,849 shares of the company's stock, valued at $30,933,002.65. This trade represents a 2.21% decrease in their ownership of the stock. The sale 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, CTO Jeffrey Tsvi Pinner sold 5,864 shares of Robinhood Markets stock in a transaction on Monday, January 26th. The stock was sold at an average price of $107.48, for a total transaction of $630,262.72. Following the transaction, the chief technology officer directly owned 9,133 shares in the company, valued at approximately $981,614.84. This represents a 39.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 469,239 shares of company stock valued at $34,161,725. 14.47% of the stock is owned by company insiders.

Institutional Investors Weigh In On Robinhood Markets

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Valley National Advisers Inc. raised its holdings in shares of Robinhood Markets by 113.6% during the third quarter. Valley National Advisers Inc. now owns 188 shares of the company's stock worth $26,000 after acquiring an additional 100 shares during the period. Golden State Wealth Management LLC raised its holdings in shares of Robinhood Markets by 107.6% during the third quarter. Golden State Wealth Management LLC now owns 191 shares of the company's stock worth $27,000 after acquiring an additional 99 shares during the period. Vision Financial Markets LLC raised its holdings in shares of Robinhood Markets by 100.0% during the third quarter. Vision Financial Markets LLC now owns 200 shares of the company's stock worth $29,000 after acquiring an additional 100 shares during the period. Stonehage Fleming Financial Services Holdings Ltd acquired a new stake in shares of Robinhood Markets during the third quarter worth $29,000. Finally, Guerra Advisors Inc acquired a new stake in shares of Robinhood Markets during the third quarter worth $30,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

Robinhood Markets News Summary

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

• Positive Sentiment: Won a large U.S. Treasury "Trump Accounts" contract (with BNY Mellon), a recurring distribution channel and potential long‑term customer/flow driver. Robinhood, BNY Win Trump Accounts
• Positive Sentiment: ARK Invest/Cathie Wood bought shares (~$12.7M reported), a visible institutional purchase that can support near‑term sentiment and trading flows. ARK Invest Buys HOOD
• Neutral Sentiment: Barclays cut its price target from $124 to $89 but kept an "overweight" rating — lowers upside expectations while remaining constructive. Barclays Price Target Change
• Neutral Sentiment: Keefe, Bruyette & Woods initiated coverage at "market perform" with a $75 target — adds another sell‑side data point ahead of earnings but not a strong buy signal. KBW Coverage
• Negative Sentiment: Zacks downgraded HOOD from "hold" to "strong sell," a headline that can trigger flows from quant/algorithmic strategies and harm sentiment. Zacks Downgrade
• Negative Sentiment: Large insider sales: CEO Vladimir Tenev sold 375,000 shares (~50% of his holdings), CTO Jeffrey Pinner sold ~5,835 shares, and director Daniel Gallagher sold 10,000 shares — all via Rule 10b5‑1 plans. The scale of sales is likely weighing on near‑term sentiment despite plan disclosures. Tenev SEC Filing Pinner SEC Filing Gallagher SEC Filing
• Negative Sentiment: Ongoing analyst pressure and price‑target trims from multiple firms (and at least one bearish research note) increase uncertainty into earnings and can amplify downside. Price Target Reductions
• Negative Sentiment: Legal/regulatory exposure via third‑party ties (Kalshi prediction market integration) could be a business and reputational risk if court rulings restrict operations. Kalshi Risk

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.

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