Robinhood Markets (NASDAQ:HOOD) Stock Price Down 3% After Analyst Downgrade

Key Points

• Shares fell about 3% after Goldman Sachs cut its price target from $102 to $91 (maintaining a Buy); HOOD traded as low as $69.70 and last at $70.35 on roughly 21.15 million shares, about 28% below average volume.
• Analysts remain largely positive—MarketBeat shows a Moderate Buy consensus with an average target of $117.48 (18 Buys, 6 Holds, 1 Sell)—and the board authorized a $1.5 billion share buyback while the company expands banking/product offerings.
• Insiders sold about 469,268 shares last quarter (including CEO Vladimir Tenev's 375,000-share sale); Robinhood reported an EPS beat but a slight revenue miss and carries a premium valuation (PE ~34, price/tangible-book ~7.7x), raising sensitivity to execution risks.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s share price fell 3% during trading on Thursday after The Goldman Sachs Group lowered their price target on the stock from $102.00 to $91.00. The Goldman Sachs Group currently has a buy rating on the stock. Robinhood Markets traded as low as $69.70 and last traded at $70.35. 21,146,561 shares traded hands during mid-day trading, a decline of 28% from the average session volume of 29,412,557 shares. The stock had previously closed at $72.54.

HOOD has been the topic of several other reports. Cantor Fitzgerald lowered their price objective on shares of Robinhood Markets from $130.00 to $100.00 and set an "overweight" rating on the stock in a research report on Tuesday, February 17th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Robinhood Markets in a report on Monday, December 22nd. Sanford C. Bernstein reissued an "outperform" rating on shares of Robinhood Markets in a report on Wednesday, February 11th. Truist Financial dropped their price target on Robinhood Markets from $130.00 to $120.00 and set a "buy" rating on the stock in a research report on Thursday, February 12th. Finally, Piper Sandler reduced their price objective on Robinhood Markets from $155.00 to $135.00 and set an "overweight" rating for the company in a research note on Wednesday, February 11th. Eighteen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Robinhood Markets presently has an average rating of "Moderate Buy" and a consensus price target of $117.48.

Insider Activity

In other news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the business's stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $75.49, for a total transaction of $754,900.00. Following the transaction, the insider directly owned 452,849 shares in the company, valued at $34,185,571.01. The trade was a 2.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Vladimir Tenev sold 375,000 shares of the stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $121.63, for a total transaction of $45,611,250.00. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 469,268 shares of company stock worth $54,409,454 over the last quarter. Insiders own 14.47% of the company's stock.

Robinhood Markets News Summary

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

• Positive Sentiment: Board authorizes a new $1.5 billion share repurchase program, a clear capital-return catalyst that supported the midweek rally and boosts buyback-driven EPS support. MarketWatch: Buyback Authorization
• Positive Sentiment: BofA reiterated a Buy rating with a $122 price target after Robinhood’s recent product launches, signaling institutional confidence in revenue/engagement upside from new offerings. BofA Reaffirms Buy
• Positive Sentiment: Robinhood expanded consumer services (banking features and a Gold Card), which could increase product stickiness and non-trading revenue over time. CrowdFundInsider: Banking Services
• Neutral Sentiment: Jefferies initiated coverage with a Buy and an $88 target — another vote of confidence but below some higher analyst targets, offering moderate upside from current levels. Benzinga: Jefferies Coverage
• Neutral Sentiment: Management commentary (interviews) points to retail client behavior and crypto exposure as drivers of short-term volatility — useful color for traders but not a clear buy/sell signal. YouTube: Exec Interview
• Negative Sentiment: Goldman Sachs cut its price target from $102 to $91 (still a Buy), narrowing expected upside and removing some bullish momentum from higher targets. Benzinga: Goldman PT Cut
• Negative Sentiment: Valuation scrutiny: Zacks highlights HOOD’s premium trailing price/tangible-book (~7.7x) versus the industry (~2.95x), increasing sensitivity to execution misses and making the stock more vulnerable to downside on any growth hiccup. Zacks: Valuation Analysis
• Negative Sentiment: Some coverage notes the stock slid to 2026 lows despite the buyback, suggesting recent rallies were at least partly profit-taking and that buybacks alone may not offset broader selling pressure. Blockonomi: Stock Drops Despite Buyback

Hedge Funds Weigh In On Robinhood Markets

Large investors have recently modified their holdings of the business. World Investment Advisors lifted its holdings in shares of Robinhood Markets by 18.5% in the 4th quarter. World Investment Advisors now owns 15,635 shares of the company's stock valued at $1,768,000 after buying an additional 2,443 shares during the period. Nalls Sherbakoff Group LLC purchased a new stake in shares of Robinhood Markets in the fourth quarter valued at approximately $57,000. Corient Private Wealth LLC grew its holdings in Robinhood Markets by 94.3% during the fourth quarter. Corient Private Wealth LLC now owns 93,449 shares of the company's stock worth $10,588,000 after acquiring an additional 45,344 shares during the period. Hsbc Holdings PLC grew its holdings in Robinhood Markets by 9.8% during the fourth quarter. Hsbc Holdings PLC now owns 1,449,346 shares of the company's stock worth $164,612,000 after acquiring an additional 129,095 shares during the period. Finally, SHP Wealth Management purchased a new position in Robinhood Markets in the fourth quarter worth $32,000. 93.27% of the stock is owned by hedge funds and other institutional investors.

Robinhood Markets Price Performance

The company has a 50-day simple moving average of $84.06 and a 200-day simple moving average of $112.16. The stock has a market cap of $63.34 billion, a PE ratio of 34.15, a PEG ratio of 1.56 and a beta of 2.47.

Robinhood Markets (NASDAQ:HOOD - Get Free Report) last issued its earnings results on Tuesday, February 10th. The company reported $0.66 EPS for the quarter, topping the consensus estimate of $0.63 by $0.03. The company had revenue of $1.28 billion for 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%. The business's revenue was up 26.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.01 EPS. On average, equities analysts expect that Robinhood Markets, Inc. will post 1.35 EPS for the current fiscal 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.

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