Robinhood Markets (NASDAQ:HOOD) Stock Falls 7.2% – Here’s What Happened

Robinhood Markets, Inc. (NASDAQ:HOOD) fell 7.2% on Friday. The company traded as low as $82.00 and last traded at $84.99. Approximately 27,625,097 shares traded hands during mid-day trading, an increase of 4% from the average daily volume of 26,587,123 shares. The stock had previously closed at $91.59.

Robinhood Markets News Summary

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

• Positive Sentiment: Robinhood reported record third-quarter revenue of approximately $1.42 billion, supported by strong activity in equities, options and margin trading. The company also highlighted rapid growth in prediction markets, expanded crypto offerings and new products such as Agentic Trading. 5 must-read analyst questions from Robinhood’s Q3 earnings call
• Positive Sentiment: Management said prediction-market activity has increased sharply and described the business as being in the early stages of a potential “supercycle.” Diversification could reduce Robinhood’s dependence on traditional stock and crypto trading over time. Why Robinhood thinks we’re at the beginning of a prediction market supercycle
• Positive Sentiment: Despite the selloff, several analysts maintain Buy, Outperform or Moderate Buy views, citing Robinhood’s product expansion and long-term growth potential. Robinhood Stock Is Down Nearly 37%—So Why Is Wall Street Still So Bullish?
• Neutral Sentiment: Prediction markets are attracting users as retail stock-trading activity cools, but investors are still assessing whether this newer business can scale enough to offset volatility in crypto and conventional trading.
• Negative Sentiment: Third-quarter revenue reportedly missed Wall Street expectations, while adjusted EPS also disappointed despite record revenue and trading volumes. Crypto revenue fell 55% year over year, weighing on the company’s earnings mix. Robinhood’s Diversification Push Gains Momentum in Q3
• Negative Sentiment: A record Binance theft and weakness across crypto markets intensified pressure on crypto-exposed trading platforms, including Robinhood. Multiple firms, including Wells Fargo, Goldman Sachs, JPMorgan, Barclays, KeyCorp and Scotiabank, also lowered price targets, adding to near-term investor caution.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on HOOD. BTIG Research reaffirmed a “buy” rating and issued a $135.00 target price on shares of Robinhood Markets in a research report on Wednesday. Keefe, Bruyette & Woods increased their price target on shares of Robinhood Markets from $100.00 to $115.00 and gave the stock a “market perform” rating in a research report on Tuesday, September 29th. Raymond James Financial reissued a “market perform” rating on shares of Robinhood Markets in a research note on Monday, October 5th. Citigroup restated a “market outperform” rating on shares of Robinhood Markets in a report on Friday, October 9th. Finally, Mizuho upped their target price on shares of Robinhood Markets from $130.00 to $140.00 and gave the stock an “outperform” rating in a research note on Wednesday, September 9th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $127.39.

Robinhood Markets Stock Down 7.2%

The business’s 50 day moving average is $108.69 and its 200-day moving average is $93.20. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.24 and a quick ratio of 1.22. The company has a market cap of $76.41 billion, a PE ratio of 39.17, a P/E/G ratio of 1.82 and a beta of 2.35.

Robinhood Markets (NASDAQ:HOOD) last posted its quarterly earnings results on Tuesday, October 27th. The company reported $0.60 EPS for the quarter, topping the consensus estimate of $0.56 by $0.04. Robinhood Markets had a net margin of 39.04% and a return on equity of 21.49%. The company had revenue of $1.42 billion during the quarter, compared to analysts’ expectations of $1.44 billion. During the same quarter in the previous year, the business posted $0.61 EPS. The firm’s revenue was up 11.5% on a year-over-year basis. As a group, analysts predict that Robinhood Markets, Inc. will post 2.20 EPS for the current year.

Insider Buying and Selling at Robinhood Markets

In related news, Director Oluwadara Treseder sold 1,875 shares of the business’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $125.00, for a total transaction of $234,375.00. Following the completion of the transaction, the director owned 70,567 shares in the company, valued at approximately $8,820,875. The trade was a 2.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Tenev sold 375,000 shares of the stock in a transaction on Monday, October 5th. The shares were sold at an average price of $113.72, for a total value of $42,645,000.00. Following the completion of the transaction, the chief executive officer directly owned 375,000 shares in the company, valued at $42,645,000. This trade represents a 50.00% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 1,091,347 shares of company stock worth $128,447,880. 13.48% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in HOOD. Crossmark Global Holdings Inc. lifted its stake in Robinhood Markets by 0.4% during the third quarter. Crossmark Global Holdings Inc. now owns 27,405 shares of the company’s stock worth $3,083,000 after purchasing an additional 102 shares during the last quarter. Lake Street Private Wealth LLC increased its stake in Robinhood Markets by 0.3% in the third quarter. Lake Street Private Wealth LLC now owns 43,899 shares of the company’s stock valued at $4,939,000 after purchasing an additional 114 shares during the last quarter. Parkside Financial Bank & Trust increased its stake in Robinhood Markets by 11.9% in the second quarter. Parkside Financial Bank & Trust now owns 1,089 shares of the company’s stock valued at $109,000 after purchasing an additional 116 shares during the last quarter. Root Financial Partners LLC raised its holdings in Robinhood Markets by 5.4% during the third quarter. Root Financial Partners LLC now owns 2,510 shares of the company’s stock worth $282,000 after purchasing an additional 129 shares in the last quarter. Finally, Brookstone Capital Management raised its holdings in Robinhood Markets by 2.5% during the third quarter. Brookstone Capital Management now owns 5,230 shares of the company’s stock worth $588,000 after purchasing an additional 129 shares in the last quarter. Hedge funds and other institutional investors own 93.27% of the company’s stock.

Robinhood Markets Company Profile

Robinhood Markets, Inc is a financial services company that operates a digital brokerage platform. Founded in 2013 by Vlad Tenev and Baiju Bhatt, the company became known for offering commission-free trading and a mobile-first investing experience designed to broaden access to financial markets.

Through its platform, Robinhood provides brokerage services for stocks, exchange-traded funds, options and other investments. Its offerings also include cryptocurrency trading, individual retirement accounts, margin investing, cash management services and Robinhood Gold, a subscription-based product that provides additional features and benefits.