Robinhood Markets (NASDAQ:HOOD) Trading Down 1.3% on Analyst Downgrade

Key Points

• Morgan Stanley cut its price target on Robinhood from $147 to $95 and moved to an "equal weight" rating, and the stock slid about 1.3% intraday to roughly $69.
• Significant insider selling was reported: CEO Vladimir Tenev sold 375,000 shares (~$26.2M) under a Rule 10b5‑1 plan, and insiders disposed of ~469,239 shares (~$34.2M) in the quarter, which may pressure sentiment.
• Despite recent downgrades and price‑target cuts, the consensus among analysts remains a Moderate Buy with a consensus target price of $110.25.

Robinhood Markets, Inc. (NASDAQ:HOOD - Get Free Report)'s share price fell 1.3% during mid-day trading on Friday after Morgan Stanley lowered their price target on the stock from $147.00 to $95.00. Morgan Stanley currently has an equal weight rating on the stock. Robinhood Markets traded as low as $68.28 and last traded at $69.19. 23,020,040 shares changed hands during mid-day trading, a decline of 21% from the average session volume of 29,086,473 shares. The stock had previously closed at $70.12.

A number of other equities research analysts also recently weighed in on HOOD. New Street Research set a $122.00 price target on shares of Robinhood Markets in a research note on Thursday, March 5th. Truist Financial cut their target price on shares of Robinhood Markets from $130.00 to $120.00 and set a "buy" rating on the stock in a research report on Thursday, February 12th. Compass Point reaffirmed a "buy" rating on shares of Robinhood Markets in a research note on Wednesday, February 11th. Zacks Research downgraded shares of Robinhood Markets from a "hold" rating to a "strong sell" rating in a report on Wednesday. Finally, Piper Sandler dropped their price target 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 equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Robinhood Markets has a consensus rating of "Moderate Buy" and a consensus target price of $110.25.

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 on Monday, April 6th. The shares were sold at an average price of $69.83, for a total value of $26,186,250.00. Following the sale, the chief executive officer owned 375,000 shares of the company's stock, valued at $26,186,250. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven M. Quirk sold 52,540 shares of the stock in a transaction on Tuesday, February 3rd. The shares were sold at an average price of $87.81, for a total value of $4,613,537.40. Following the completion of the sale, the insider owned 27,564 shares of the company's stock, valued at $2,420,394.84. The trade was a 65.59% 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 quarter, insiders have sold 469,239 shares of company stock valued at $34,161,725. Insiders own 14.47% of the company's stock.

More Robinhood Markets News

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

• Positive Sentiment: Robinhood won the U.S. Treasury "Trump Accounts" contract (with BNY Mellon), a potential large, recurring distribution channel and new account flow that could boost deposits/users over time. Read More.
• Positive Sentiment: ARK Invest (Cathie Wood) added to HOOD (reported ~ $12.7M), a high‑profile institutional purchase that can support near‑term sentiment and trading volume. Read More.
• Neutral Sentiment: Keefe, Bruyette & Woods initiated coverage on HOOD (market‑perform) — adds another sell‑side reference point but doesn't change the clear divide among analysts. Read More.
• Neutral Sentiment: Citizens/JMP reiterated an outperform stance but lowered its price target (now $155), leaving a large upside vs. the current price while toning down prior optimism. Read More.
• Negative Sentiment: Morgan Stanley cut its price target sharply from $147 to $95 and moved to "equal weight" — a meaningful analyst downgrade that reduces expected upside and likely added selling pressure. Read More.
• Negative Sentiment: Zacks Research downgraded HOOD from "hold" to "strong sell," increasing analyst pessimism ahead of earnings season. Read More.
• Negative Sentiment: Significant insider selling was reported: CEO Vladimir Tenev (~375,000 shares), CTO Jeffrey Pinner (5,835 shares) and director Daniel Gallagher (10,000 shares) sold stock under Rule 10b5‑1 plans — the size of the disposals can sap sentiment even if pre‑planned. Read More. Read More. Read More.
• Negative Sentiment: Multiple brokers have trimmed targets or issued cautious notes (several recent price‑target cuts), layering analyst‑driven downside risk into the stock's momentum. Read More.
• Negative Sentiment: Regulatory/legal exposure via third‑party links (e.g., Kalshi prediction‑market risks after a Fox integration) introduces extra operational/legal uncertainty. Read More.

Hedge Funds Weigh In On Robinhood Markets

A number of hedge funds have recently made changes to their positions in the stock. Valley National Advisers Inc. increased its position in Robinhood Markets by 113.6% during the 3rd quarter. Valley National Advisers Inc. now owns 188 shares of the company's stock valued at $26,000 after purchasing an additional 100 shares during the period. Sound Income Strategies LLC lifted its position in shares of Robinhood Markets by 152.6% in the 4th quarter. Sound Income Strategies LLC now owns 240 shares of the company's stock worth $26,000 after purchasing an additional 145 shares during the period. CYBER HORNET ETFs LLC boosted its stake in shares of Robinhood Markets by 527.8% in the 4th quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company's stock valued at $26,000 after purchasing an additional 190 shares during the last quarter. Golden State Wealth Management LLC boosted its stake in shares of Robinhood Markets by 107.6% in the 3rd quarter. Golden State Wealth Management LLC now owns 191 shares of the company's stock valued at $27,000 after purchasing an additional 99 shares during the last quarter. Finally, Elyxium Wealth LLC acquired a new stake in shares of Robinhood Markets during the fourth quarter worth $27,000. 93.27% of the stock is currently owned by institutional investors.

Robinhood Markets Stock Down 1.3%

The business's 50 day moving average is $75.88 and its two-hundred day moving average is $108.44. The firm has a market cap of $62.29 billion, a P/E ratio of 33.59, a P/E/G ratio of 1.73 and a beta of 2.46.

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.