Robinhood Markets (NASDAQ:HOOD) Trading Down 3.3% – Here’s What Happened

Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) traded down 3.3% during mid-day trading on Thursday . The company traded as low as $75.07 and last traded at $76.12. 22,501,574 shares changed hands during trading, a decline of 25% from the average session volume of 30,154,564 shares. The stock had previously closed at $78.69.

Robinhood Markets News Roundup

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

• Positive Sentiment: Prediction-markets revenue and “Super App” strategy point to new high-margin revenue streams (management says prediction markets are scaling and MarketBeat notes prediction-markets revenue annualizing at ~$435M). This supports longer-term growth and upside versus current stock levels. 3 Stocks Betting Big on Prediction Markets This March Madness
• Positive Sentiment: Banking unit traction — deposits have crossed $1B with ~65k customers — adds a recurring-funds base that can reduce revenue cyclicality and supports monetization away from trading/crypto flows. Robinhood banking unit crosses $1 bln in deposits, 65k customers, CEO Tenev says
• Positive Sentiment: Short interest fell materially in February (down ~12.8% to ~30.1M shares, ~4.2% of float), reducing immediate squeeze risk and indicating less bearish positioning. That can support upside if fundamentals continue improving. Short interest report (source provided in brief)
• Neutral Sentiment: Company released February operating data (select monthly metrics) — routine disclosure that keeps investors updated but did not contain a market-moving surprise in the initial release. Robinhood Markets, Inc. Reports February 2026 Operating Data
• Neutral Sentiment: Zacks notes the stock is slightly higher since the last earnings report, reflecting mixed investor read-throughs from the beat on EPS and slight revenue miss. Why Is Robinhood Markets (HOOD) Up 0.9% Since Last Earnings Report?
• Neutral Sentiment: Growth in third‑party crypto tools (e.g., Banana Gun) highlights robust retail crypto activity but also shows competition for trading volume outside broker platforms — mixed implications for Robinhood. Crypto trading bot Banana Gun clears $8B in annualized volume
• Negative Sentiment: Analyst/press pieces emphasize HOOD’s historical volatility and drawdowns (Forbes: average -37% during systemic shocks), which keeps risk premium elevated and may depress sentiment. How Low Can HOOD Stock Go?
• Negative Sentiment: Comparisons to Interactive Brokers (IBKR) highlight concerns that a more diversified, lower‑multiple broker may be a safer choice in a volatile crypto cycle — a narrative that can weigh on HOOD’s multiple. HOOD vs. IBKR: Which is a Better Bet in the Volatile Crypto Market?

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. The Goldman Sachs Group decreased their price target on shares of Robinhood Markets from $152.00 to $130.00 and set a “buy” rating on the stock in a research report on Wednesday, February 11th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Robinhood Markets in a research report on Monday, December 22nd. Truist Financial reduced their target price on shares of Robinhood Markets from $130.00 to $120.00 and set a “buy” rating for the company in a research note on Thursday, February 12th. Morgan Stanley lifted their target price on Robinhood Markets from $146.00 to $147.00 and gave the stock an “equal weight” rating in a research report on Monday, December 22nd. Finally, Bank of America lowered their price target on Robinhood Markets from $166.00 to $154.00 and set a “buy” rating on the stock in a research note on Wednesday, December 10th. Seventeen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Robinhood Markets presently has a consensus rating of “Moderate Buy” and a consensus target price of $121.73.

Robinhood Markets Trading Down 3.3%

The stock has a market cap of $68.53 billion, a P/E ratio of 36.95, a price-to-earnings-growth ratio of 1.77 and a beta of 2.47. The company’s fifty day simple moving average is $92.91 and its 200-day simple moving average is $114.26.

Robinhood Markets (NASDAQ:HOOD) last released its quarterly earnings data on Tuesday, February 10th. The company reported $0.66 EPS for the quarter, topping analysts’ consensus estimates of $0.63 by $0.03. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.32 billion. Robinhood Markets had a net margin of 42.10% and a return on equity of 22.32%. The firm’s revenue for the quarter was up 26.5% compared to the same quarter last year. During the same period last year, the firm earned $1.01 EPS. As a group, analysts expect that Robinhood Markets, Inc. will post 1.35 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CTO Jeffrey Tsvi Pinner sold 5,864 shares of the firm’s stock in a transaction that occurred on Monday, January 26th. The stock was sold at an average price of $107.48, for a total transaction of $630,262.72. Following the completion of the transaction, the chief technology officer owned 9,133 shares in the company, valued at $981,614.84. This trade represents a 39.10% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Steven M. Quirk sold 52,540 shares of the business’s 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 directly owned 27,564 shares in the company, valued at approximately $2,420,394.84. This represents a 65.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 475,132 shares of company stock valued at $55,127,149 over the last ninety days. Company insiders own 14.47% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of HOOD. Vanguard Group Inc. grew its holdings in shares of Robinhood Markets by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 95,771,497 shares of the company’s stock worth $10,831,756,000 after purchasing an additional 1,334,443 shares during the last quarter. State Street Corp lifted its holdings in Robinhood Markets by 2.7% during the 4th quarter. State Street Corp now owns 33,121,452 shares of the company’s stock valued at $3,746,036,000 after purchasing an additional 875,297 shares during the last quarter. Geode Capital Management LLC boosted its position in Robinhood Markets by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 21,171,925 shares of the company’s stock valued at $2,386,944,000 after buying an additional 356,902 shares in the last quarter. Morgan Stanley grew its stake in Robinhood Markets by 23.9% during the fourth quarter. Morgan Stanley now owns 10,683,776 shares of the company’s stock worth $1,208,335,000 after buying an additional 2,061,832 shares during the last quarter. Finally, Norges Bank bought a new stake in Robinhood Markets during the fourth quarter worth about $1,202,160,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

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.