Robinhood Markets (NASDAQ:HOOD) Shares Down 3.3% After Analyst Downgrade

Key Points

• Robinhood shares fell 3.3% to $91.43 after JPMorgan lowered its price target from $115 to $114 while maintaining a neutral rating; trading volume was 45% above average.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average target price of $127.45, despite several firms recently cutting their targets.
• Robinhood reported record third-quarter revenue of about $1.42 billion and adjusted EPS of $0.60, but crypto revenue plunged 55% year over year and weaker interest income, margin pressure and the lack of an expense outlook weighed on the stock.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) shares were down 3.3% during mid-day trading on Wednesday after JPMorgan Chase & Co. lowered their price target on the stock from $115.00 to $114.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Robinhood Markets traded as low as $89.15 and last traded at $91.43. 38,635,005 shares changed hands during mid-day trading, an increase of 45% from the average daily volume of 26,605,826 shares. The stock had previously closed at $94.56.

A number of other research firms have also recently weighed in on HOOD. Truist Financial lowered their price target on shares of Robinhood Markets from $134.00 to $125.00 and set a "buy" rating on the stock in a report on Wednesday. Weiss Ratings restated a "hold (c)" rating on shares of Robinhood Markets in a research note on Monday, September 21st. CICC Research lifted their price target on shares of Robinhood Markets from $100.00 to $110.00 and gave the stock an "outperform" rating in a report on Friday, July 31st. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Robinhood Markets in a research report on Tuesday, September 15th. Finally, Loop Capital set a $135.00 price objective on Robinhood Markets in a research report on Tuesday, September 29th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $127.45.

Insider Buying and Selling at Robinhood Markets

In other news, Director Baiju Bhatt sold 50,912 shares of the business's stock in a transaction on Wednesday, October 21st. The shares were sold at an average price of $101.40, for a total transaction of $5,162,476.80. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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 shares were sold at an average price of $113.71, for a total value of $1,137,100.00. Following the completion of the transaction, the insider directly owned 499,943 shares in the company, 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. Insiders have sold a total of 1,091,347 shares of company stock worth $128,447,880 in the last three months. 13.48% of the stock is owned by company insiders.

Robinhood Markets News Summary

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

• Positive Sentiment: Robinhood reported record third-quarter revenue of approximately $1.42 billion, up about 12% year over year. Net deposits reached $16 billion, platform assets climbed to $396 billion, and Robinhood Gold subscribers rose to a record 5.2 million. Robinhood Reports Third Quarter 2026 Results
• Positive Sentiment: Trading activity remained strong, while prediction markets and options helped offset the crypto slowdown. Robinhood said 14 business lines now generate at least $100 million in annualized revenue, supporting the company’s strategy to diversify beyond cryptocurrency. Robinhood quarterly revenue rises 12%
• Positive Sentiment: Bernstein said new offerings, including prediction markets, could drive future upside. Several analysts retained bullish ratings, although most reduced their price targets; Citizens JMP reaffirmed an outperform rating with a $165 target. Robinhood to rally on prediction markets and new offerings
• Neutral Sentiment: Robinhood’s adjusted EPS of $0.60 exceeded consensus of $0.56, but diluted EPS was $0.51, below expectations and down from a year earlier. Revenue also fell slightly short of estimates, while higher expenses pressured margins.
• Neutral Sentiment: About 200,000 customers have reportedly enabled Robinhood’s AI trading agents. The product could increase engagement and create a new revenue stream, but autonomous trading also introduces regulatory, execution and reputational risks. 200,000 Robinhood Customers Now Let AI Trade for Them
• Negative Sentiment: Crypto revenue fell 55% year over year to $120 million as subdued cryptocurrency activity and tighter spreads reduced transaction revenue. Crypto weakness, along with lower interest income, was the main catalyst for the earnings-related selloff. 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 around future profitability. The Ohio Casino Control Commission also sent a cease-and-desist letter concerning sports-related event contracts in the state. Robinhood Stock Tumbles Over 6%

Institutional Investors Weigh In On Robinhood Markets

A number of institutional investors and hedge funds have recently modified their holdings of the company. Partners Wealth Management LLC purchased a new stake in Robinhood Markets during the third quarter worth approximately $9,907,000. Soltis Investment Advisors LLC grew its stake in Robinhood Markets by 36.9% in the third quarter. Soltis Investment Advisors LLC now owns 3,451 shares of the company's stock worth $388,000 after purchasing an additional 931 shares in the last quarter. Founders Financial Securities LLC boosted its holdings in Robinhood Markets by 4.1% in the third quarter. Founders Financial Securities LLC now owns 5,541 shares of the company's stock worth $623,000 after purchasing an additional 219 shares during the period. Brooklands Fund Management Ltd acquired a new position in Robinhood Markets in the third quarter valued at approximately $73,000. Finally, United Asset Strategies Inc. acquired a new position in Robinhood Markets during the 3rd quarter valued at approximately $686,000. Institutional investors and hedge funds own 93.27% of the company's stock.

Robinhood Markets Price Performance

The company has a 50-day simple moving average of $108.78 and a two-hundred day simple moving average of $93.44. The stock has a market capitalization of $82.20 billion, a price-to-earnings ratio of 40.28, a price-to-earnings-growth ratio of 1.89 and a beta of 2.35. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.22 and a quick ratio of 1.22.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The company reported $0.60 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.04. Robinhood Markets had a net margin of 42.01% and a return on equity of 22.43%. The firm had revenue of $1.42 billion for the quarter, compared to the consensus estimate of $1.44 billion. During the same period last year, the firm posted $0.61 EPS. Robinhood Markets's quarterly revenue was up 11.5% compared to the same quarter last year. On average, equities research analysts predict that Robinhood Markets, Inc. will post 2.19 earnings per share 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.

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