Robinhood Markets (NASDAQ:HOOD) Trading Down 2.8% – Here’s Why

Robinhood Markets, Inc. (NASDAQ:HOOD) shares fell 2.8% during mid-day trading on Tuesday . The stock traded as low as $85.56 and last traded at $88.2120. 42,428,828 shares were traded during trading, an increase of 79% from the average session volume of 23,683,998 shares. The stock had previously closed at $90.73.

More Robinhood Markets News

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

• Positive Sentiment: Director Meyer Malka bought 181,000 shares at an average of $83.45, a roughly $15.1 million insider purchase that signals strong confidence from a key company insider.
• Positive Sentiment: Robinhood’s TradePMR unit is expanding its push into wealth management with a new RIA referral program, added client referral tools, AI capabilities, and broader IPO access for advisors’ clients, which could help grow higher-value institutional relationships.
• Positive Sentiment: The company and TradePMR also plan to lower rates on margin and securities-backed lending in July, a move that could make the platform more attractive to registered investment advisors and their clients.
• Positive Sentiment: Robinhood completed its acquisition of WonderFi, giving it an entry into Canada and expanding its crypto footprint with brands such as Bitbuy and Coinsquare.
• Positive Sentiment: New agentic AI trading features and other product launches continue to reinforce the market’s view that Robinhood is evolving into a broader “super app” for investing and financial services.
• Neutral Sentiment: Several reports this week highlighted Robinhood’s conference for advisors and its efforts to deepen TradePMR’s platform, but these updates are mainly execution milestones rather than immediate financial catalysts.
• Neutral Sentiment: Bitcoin weakness remains a backdrop for Robinhood because the company has meaningful crypto exposure, but the direct stock impact is less clear from the latest articles.
• Negative Sentiment: Robinhood still faces competitive pressure as Binance rolls out U.S. stock and ETF trading, which could intensify competition in its core brokerage market.
• Negative Sentiment: Analysts have also noted that Robinhood must show more than AI excitement alone to justify its valuation, especially after the stock’s strong recent run.

Analyst Ratings Changes

Several brokerages recently issued reports on HOOD. Loop Capital set a $94.00 price target on Robinhood Markets in a research note on Wednesday, May 27th. Argus lowered their price target on Robinhood Markets from $102.00 to $90.00 and set a “buy” rating on the stock in a research note on Thursday, April 30th. Wolfe Research upgraded Robinhood Markets from a “peer perform” rating to an “outperform” rating and set a $125.00 price target on the stock in a research note on Monday, February 9th. Wall Street Zen lowered Robinhood Markets from a “hold” rating to a “sell” rating in a research note on Saturday, February 14th. Finally, Citizens Jmp restated a “market outperform” rating and set a $155.00 price target on shares of Robinhood Markets in a research note on Thursday, May 28th. Nineteen equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $105.96.

Robinhood Markets Price Performance

The stock has a market capitalization of $74.61 billion, a P/E ratio of 40.02, a PEG ratio of 2.64 and a beta of 2.35. The company’s 50 day simple moving average is $77.51 and its two-hundred day simple moving average is $93.34.

Robinhood Markets (NASDAQ:HOOD) last issued its quarterly earnings data on Tuesday, April 28th. The company reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.01). The firm had revenue of $1.07 billion for the quarter, compared to the consensus estimate of $1.14 billion. Robinhood Markets had a return on equity of 21.39% and a net margin of 41.12%.Robinhood Markets’s quarterly revenue was up 15.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.37 earnings per share. On average, research analysts anticipate that Robinhood Markets, Inc. will post 1.85 earnings per share for the current fiscal year.

Insider Buying and Selling at Robinhood Markets

In other Robinhood Markets news, Director Meyer Malka purchased 181,000 shares of the firm’s stock in a transaction that occurred on Wednesday, June 3rd. The shares were acquired at an average cost of $83.45 per share, for a total transaction of $15,104,450.00. Following the transaction, the director directly owned 3,674,427 shares in the company, valued at approximately $306,630,933.15. The trade was a 5.18% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $76.89, for a total value of $768,900.00. Following the sale, the insider owned 432,849 shares in the company, valued at approximately $33,281,759.61. This trade represents a 2.26% 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 sold 550,765 shares of company stock worth $40,191,940 over the last 90 days. Company insiders own 14.47% of the company’s stock.

Institutional Investors Weigh In On Robinhood Markets

A number of large investors have recently bought and sold shares of HOOD. Sound Income Strategies LLC grew its position in Robinhood Markets by 152.6% during the 4th quarter. Sound Income Strategies LLC now owns 240 shares of the company’s stock worth $26,000 after acquiring an additional 145 shares during the last quarter. CYBER HORNET ETFs LLC grew its position in Robinhood Markets by 527.8% during the 4th quarter. CYBER HORNET ETFs LLC now owns 226 shares of the company’s stock worth $26,000 after acquiring an additional 190 shares during the last quarter. Elyxium Wealth LLC bought a new stake in Robinhood Markets during the 4th quarter worth approximately $27,000. MV Capital Management Inc. bought a new stake in Robinhood Markets during the 4th quarter worth approximately $27,000. Finally, Swiss RE Ltd. bought a new position in Robinhood Markets in the 4th quarter valued at $27,000. 93.27% of the stock is currently owned by institutional investors.

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.