Robinhood Markets (NASDAQ:HOOD) Trading Down 1.7% – Here’s Why

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) dropped 1.7% on Friday . The stock traded as low as $98.37 and last traded at $99.48. Approximately 23,529,616 shares traded hands during mid-day trading, an increase of 10% from the average daily volume of 21,465,096 shares. The stock had previously closed at $101.24.

Trending Headlines about Robinhood Markets

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

• Positive Sentiment: Cantor Fitzgerald upgraded HOOD to a stronger buy, adding institutional endorsement that can attract model‑driven flows and support the stock. Cantor Fitzgerald Upgrade
• Positive Sentiment: Needham & Company reiterated a “Buy” rating, reaffirming Wall Street support and a constructive view on growth and margins. Needham Reiterates Buy
• Positive Sentiment: Reports say the U.S. government is considering Robinhood to help oversee millions of proposed “Trump accounts” for kids — a potential large, recurring services relationship if selected. Reuters: US Mulls Tapping Robinhood
• Positive Sentiment: Argus and other outlets are publishing bullish takes, reinforcing a constructive analyst narrative that can help sentiment. Argus Bullish
• Neutral Sentiment: CEO outlined steps to avoid another GameStop‑style trading halt, reducing operational/liquidity risk if implemented — a governance/operations positive but not an immediate revenue driver. CEO Halts Plan
• Neutral Sentiment: Coverage highlights Robinhood’s push into prediction markets (new revenue stream) and regulatory attention that could bring both rule clarity and compliance costs; long‑term upside but execution‑dependent. Prediction Markets Coverage
• Negative Sentiment: CTO Jeffrey Pinner sold 5,864 shares (disclosed Form 4), a notable insider sale that can create short‑term selling pressure and raise questions about timing/motivation. Insider Sale Filing
• Negative Sentiment: Commentary and data points show HOOD has proved volatile and recently fell more than the broader market, underscoring sensitivity to news and high beta risk for momentum‑driven investors. Zacks Volatility Note

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the company. KeyCorp raised their target price on Robinhood Markets from $135.00 to $155.00 and gave the stock an “overweight” rating in a research note on Friday, October 31st. The Goldman Sachs Group restated a “buy” rating on shares of Robinhood Markets in a report on Monday, January 5th. Cantor Fitzgerald upgraded shares of Robinhood Markets to a “strong-buy” rating in a research note on Tuesday, January 27th. Bank of America cut their target price on shares of Robinhood Markets from $166.00 to $154.00 and set a “buy” rating on the stock in a research note on Wednesday, December 10th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Robinhood Markets in a report on Monday, December 22nd. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $136.62.

Robinhood Markets Stock Performance

The stock’s 50 day simple moving average is $118.03 and its 200 day simple moving average is $119.87. The firm has a market cap of $89.45 billion, a P/E ratio of 41.28, a price-to-earnings-growth ratio of 1.58 and a beta of 2.44.

Robinhood Markets (NASDAQ:HOOD) last released its quarterly earnings data on Wednesday, November 5th. The company reported $0.61 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.20. The firm had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.15 billion. Robinhood Markets had a net margin of 52.19% and a return on equity of 21.74%. The business’s quarterly revenue was up 100.0% compared to the same quarter last year. During the same period last year, the firm earned $0.17 earnings per share. As a group, analysts forecast that Robinhood Markets, Inc. will post 1.35 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Vladimir Tenev sold 375,000 shares of Robinhood Markets stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $121.63, for a total transaction of $45,611,250.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Steven M. Quirk sold 49,942 shares of the company’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $131.15, for a total value of $6,549,893.30. Following the sale, the insider owned 54,496 shares of the company’s stock, valued at $7,147,150.40. This trade represents a 47.82% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 2,878,425 shares of company stock worth $358,100,808 over the last 90 days. Company insiders own 14.47% of the company’s stock.

Institutional Trading of Robinhood Markets

Several institutional investors have recently made changes to their positions in HOOD. Valley National Advisers Inc. boosted its holdings in 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 purchasing an additional 100 shares during the last quarter. Golden State Wealth Management LLC increased its stake in 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 buying an additional 99 shares during the last quarter. Vision Financial Markets LLC lifted its position in shares of Robinhood Markets by 100.0% during the 3rd quarter. Vision Financial Markets LLC now owns 200 shares of the company’s stock worth $29,000 after buying an additional 100 shares in the last quarter. Stonehage Fleming Financial Services Holdings Ltd bought a new position in shares of Robinhood Markets during the 3rd quarter worth approximately $29,000. Finally, Guerra Advisors Inc purchased a new position in shares of Robinhood Markets in the 3rd quarter worth approximately $30,000. Institutional investors own 93.27% of the company’s stock.

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.