Robinhood Markets (NASDAQ:HOOD) Shares Down 4.7% – What’s Next?
by Michael Walen · The Markets DailyRobinhood Markets, Inc. (NASDAQ:HOOD – Get Free Report) dropped 4.7% during trading on Tuesday . The stock traded as low as $68.58 and last traded at $69.08. Approximately 28,430,259 shares were traded during trading, a decline of 4% from the average daily volume of 29,509,840 shares. The stock had previously closed at $72.49.
Key Headlines Impacting Robinhood Markets
Here are the key news stories impacting Robinhood Markets this week:
- Positive Sentiment: Analyst support and improving financials: Mizuho reiterated an Outperform on HOOD (but cut its price target), and recent commentary from research outlets highlights improving profitability metrics and a strengthened fintech product mix. Robinhood Markets, Inc. (HOOD) Bolsters Fintech Portfolio as Financials Improve
- Neutral Sentiment: Sector venture activity in prediction markets could deepen the ecosystem but has limited near-term impact on Robinhood’s core trading revenue. Kalshi, Polymarket Founders Back New Prediction Market VC Fund
- Neutral Sentiment: Robinhood-owned Sherwood News published analysis on Musk’s businesses—brand/PR content that raises engagement but is unlikely to move fundamentals. Robinhood’s Sherwood News Asks Why Musk Hasn’t Merged Tesla And SpaceX: Prediction Markets Give The Answer
- Negative Sentiment: Strategic pivot concerns: coverage notes ROBO lost ~40% YTD and has aggressively shifted into banking and card products after crypto revenue cratered—a change that raises execution and capital intensity questions. Robinhood Lost 40% YTD Then Decided to Play Banker
- Negative Sentiment: Regulatory risk for prediction markets: a Senate push to restrict the sector would directly hamper one avenue of Robinhood’s product expansion. That regulatory overhang is contributing to investor caution. Coinbase, Robinhood, Kraken prediction market expansion under threat after Senate reportedly moves to restrict sector
- Negative Sentiment: Competitive pressure from adjacent fintechs/sports-betting platforms: DraftKings’ focus on growth and worries about rising customer-acquisition costs highlight user share risks across consumer finance apps. DraftKings (DKNG) Investing to Revitalize Growth Amid Competition and Customer Acquisition Concerns
Analysts Set New Price Targets
HOOD has been the subject of several recent research reports. Wolfe Research upgraded shares of Robinhood Markets from a “peer perform” rating to an “outperform” rating and set a $125.00 target price for the company in a research report on Monday, February 9th. Citizens Jmp reiterated a “market outperform” rating and set a $180.00 price target on shares of Robinhood Markets in a research note on Wednesday, February 11th. New Street Research set a $122.00 price objective on shares of Robinhood Markets in a research report on Thursday, March 5th. Cantor Fitzgerald reduced their price objective on Robinhood Markets from $130.00 to $100.00 and set an “overweight” rating for the company in a research note on Tuesday, February 17th. Finally, Piper Sandler decreased their target price on Robinhood Markets from $155.00 to $135.00 and set an “overweight” rating on the stock in a report on Wednesday, February 11th. Seventeen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $120.59.
Check Out Our Latest Stock Analysis on HOOD
Robinhood Markets Price Performance
The stock’s 50-day simple moving average is $86.03 and its two-hundred day simple moving average is $112.66. The firm has a market capitalization of $62.19 billion, a P/E ratio of 33.53, a price-to-earnings-growth ratio of 1.60 and a beta of 2.47.
Robinhood Markets (NASDAQ:HOOD – Get Free Report) last released its earnings results on Tuesday, February 10th. The company reported $0.66 earnings per share for the quarter, beating analysts’ consensus estimates of $0.63 by $0.03. The company had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.32 billion. Robinhood Markets had a net margin of 42.10% and a return on equity of 22.32%. Robinhood Markets’s revenue for the quarter was up 26.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.01 EPS. On average, analysts forecast that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.
Insiders Place Their Bets
In other news, insider Steven M. Quirk sold 52,540 shares of the business’s stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $87.81, for a total value of $4,613,537.40. Following the transaction, the insider directly owned 27,564 shares in the company, valued at $2,420,394.84. The trade was a 65.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO Jeffrey Tsvi Pinner sold 5,864 shares of the company’s stock in a transaction dated Monday, January 26th. The stock was sold at an average price of $107.48, for a total value of $630,262.72. Following the completion of the transaction, the chief technology officer directly owned 9,133 shares of the company’s stock, valued at approximately $981,614.84. This trade represents a 39.10% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 469,268 shares of company stock valued at $54,409,454 in the last ninety days. Insiders own 19.95% of the company’s stock.
Hedge Funds Weigh In On Robinhood Markets
Hedge funds and other institutional investors have recently modified their holdings of the stock. World Investment Advisors lifted its stake in Robinhood Markets by 18.5% in the 4th quarter. World Investment Advisors now owns 15,635 shares of the company’s stock worth $1,768,000 after purchasing an additional 2,443 shares in the last quarter. Nalls Sherbakoff Group LLC purchased a new position in shares of Robinhood Markets during the fourth quarter valued at about $57,000. Corient Private Wealth LLC increased its holdings in shares of Robinhood Markets by 94.3% in the fourth quarter. Corient Private Wealth LLC now owns 93,449 shares of the company’s stock worth $10,588,000 after purchasing an additional 45,344 shares during the last quarter. Hsbc Holdings PLC increased its holdings in shares of Robinhood Markets by 9.8% in the fourth quarter. Hsbc Holdings PLC now owns 1,449,346 shares of the company’s stock worth $164,612,000 after purchasing an additional 129,095 shares during the last quarter. Finally, SHP Wealth Management purchased a new stake in shares of Robinhood Markets in the fourth quarter worth about $32,000. 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.