Robinhood Markets (NASDAQ:HOOD) Stock Price Down 1.4% After Analyst Downgrade

Key Points

• Robinhood shares fell 1.4% to about $83.84 after Cantor Fitzgerald cut its price target from $150 to $120, while retaining an “overweight” rating.
• Despite the reduction, analyst sentiment remains broadly positive: Robinhood has a consensus “Moderate Buy” rating and an average price target of $126.45.
• Recent earnings were mixed, with EPS of $0.60 exceeding expectations but quarterly revenue of $1.42 billion coming in slightly below forecasts; insiders have also sold more than 1 million shares over the past three months.

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report) were down 1.4% on Monday after Cantor Fitzgerald lowered their price target on the stock from $150.00 to $120.00. Cantor Fitzgerald currently has an overweight rating on the stock. Robinhood Markets traded as low as $83.35 and last traded at $83.84. 19,299,487 shares changed hands during mid-day trading, a decline of 27% from the average session volume of 26,553,590 shares. The stock had previously closed at $84.99.

Several other equities research analysts also recently weighed in on HOOD. Keefe, Bruyette & Woods upped their target price on Robinhood Markets from $100.00 to $115.00 and gave the stock a "market perform" rating in a research report on Tuesday, September 29th. Citizens Jmp restated a "market outperform" rating and issued a $165.00 price target on shares of Robinhood Markets in a research note on Wednesday, October 28th. Weiss Ratings restated a "hold (c)" rating on shares of Robinhood Markets in a research report on Monday, September 21st. Morgan Stanley lifted their target price on Robinhood Markets from $150.00 to $160.00 and gave the company an "overweight" rating in a research note on Friday, October 9th. Finally, KeyCorp decreased their price target on shares of Robinhood Markets from $140.00 to $135.00 and set an "overweight" rating for the company in a report on Wednesday, October 28th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $126.45.

Insider Activity

In other news, Director Baiju Bhatt sold 50,912 shares of the business's stock in a transaction that occurred on Wednesday, October 21st. The stock was sold at an average price of $101.40, for a total value of $5,162,476.80. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Shiv Verma sold 11,472 shares of the company's stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $110.42, for a total transaction of $1,266,738.24. Following the transaction, the chief financial officer owned 56,858 shares in the company, valued at $6,278,260.36. The trade was a 16.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 1,081,347 shares of company stock valued at $127,543,680. 13.48% of the stock is owned by insiders.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: Analyst support remains a potential catalyst. Cantor Fitzgerald maintained an “overweight” rating and reduced its price target from $150 to $120. Despite the cut, the new target indicates substantial potential upside from the current level. A separate report also highlighted that Wall Street analysts generally view HOOD as a buy. Cantor Fitzgerald Robinhood rating Wall Street analysts’ Robinhood rating
• Positive Sentiment: Business diversification is improving. Robinhood has expanded beyond retail trading into institutional services, digital banking, and other financial products. The company generated nearly $4.5 billion in 2025 revenue, supported by strong trading activity and increasing adoption of its broader platform. Robinhood versus Interactive Brokers Robinhood versus Nu
• Neutral Sentiment: Recent earnings were mixed. Robinhood exceeded quarterly earnings expectations, but revenue came in slightly below forecasts and growth was about 12% year over year. The company’s profitability remains strong, though investors are weighing whether its expansion can justify the stock’s relatively high valuation.
• Negative Sentiment: Crypto weakness continues to weigh on sentiment. Robinhood’s historical reliance on cryptocurrency trading has made results vulnerable to lower crypto activity. Recent coverage suggests crypto-related revenue may not stabilize until next year, contributing to the post-earnings pullback. Robinhood post-earnings dip Robinhood crypto trading outlook
• Negative Sentiment: Target reductions reinforce near-term caution. Cantor Fitzgerald’s lower target and a reported rating downgrade from Wall Street Zen indicate that some market participants are becoming more cautious after the earnings results. Wall Street Zen Robinhood rating

Institutional Investors Weigh In On Robinhood Markets

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Sumitomo Mitsui Trust Group Inc. lifted its position in shares of Robinhood Markets by 10.2% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 6,812,999 shares of the company's stock worth $472,141,000 after purchasing an additional 632,403 shares in the last quarter. Amundi raised its stake in Robinhood Markets by 89.0% in the 1st quarter. Amundi now owns 6,385,232 shares of the company's stock worth $442,497,000 after purchasing an additional 3,007,103 shares in the last quarter. Amova Asset Management Americas Inc. grew its holdings in shares of Robinhood Markets by 15.0% during the 1st quarter. Amova Asset Management Americas Inc. now owns 5,240,796 shares of the company's stock worth $362,925,000 after purchasing an additional 685,041 shares in the last quarter. Renaissance Technologies LLC increased its holdings in Robinhood Markets by 48.6% in the 1st quarter. Renaissance Technologies LLC now owns 5,104,137 shares of the company's stock valued at $353,717,000 after buying an additional 1,668,400 shares during the period. Finally, Bank of New York Mellon Corp acquired a new position in Robinhood Markets during the second quarter valued at approximately $379,695,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

Robinhood Markets Price Performance

The business has a fifty day moving average price of $108.49 and a 200 day moving average price of $93.04. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.24 and a current ratio of 1.24. The company has a market cap of $75.38 billion, a price-to-earnings ratio of 38.64, a PEG ratio of 1.78 and a beta of 2.57.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last posted its earnings results on Wednesday, October 28th. The company reported $0.60 EPS for the quarter, beating the consensus estimate of $0.56 by $0.04. Robinhood Markets had a return on equity of 21.49% and a net margin of 39.04%. The firm had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $1.44 billion. During the same period last year, the company earned $0.61 earnings per share. The business's quarterly revenue was up 11.5% on a year-over-year basis. As a group, research analysts anticipate that Robinhood Markets, Inc. will post 2.18 earnings per share for the current year.

About Robinhood Markets

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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