Robinhood Markets (NASDAQ:HOOD) Trading Down 3% – What’s Next?

Robinhood Markets, Inc. (NASDAQ:HOOD) shares traded down 3% during mid-day trading on Wednesday . The stock traded as low as $115.59 and last traded at $115.80. 35,848,723 shares traded hands during trading, a decline of 8% from the average session volume of 39,105,238 shares. The stock had previously closed at $119.40.

Key Robinhood Markets News

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

• Positive Sentiment: Truist initiated coverage / bullish commentary — Truist analysts have pushed a constructive view on HOOD, with public interviews outlining a clear bull case, supporting investor sentiment and likely contributing to buying interest. Robinhood Markets (NASDAQ:HOOD) Coverage Initiated at Truist Financial
• Positive Sentiment: Product expansion: prediction markets & sports-betting features — Robinhood is expanding prediction-market tools (NFL combos, player contracts) and positioning for sports-related trading, which could increase user activity and new revenue streams. Media and exec interviews highlight this as a strategic growth lever. Robinhood expands services tied to prediction markets as rivals take the gloves off
• Positive Sentiment: Sector tailwinds and firm-level recognition — Barclays and other outlets cite a favorable 2026 outlook for wealth brokers and alternative-asset managers, naming Robinhood as a beneficiary; that macro view supports investor appetite for HOOD. Robinhood (HOOD) Beneficiary of Barclays’ Positive 2026 Outlook for Wealth Brokers and Alternative Asset Managers Amid Mixed Exchange Environment
• Neutral Sentiment: WonderFi deal outside-date extended to June 1, 2026 — Robinhood and WonderFi agreed to push the transaction closing deadline, while continuing integration planning for a Canadian rollout; this maintains an acquisition catalyst but delays timing and certainty. WonderFi Announces Extension to the Outside Date for Robinhood Transaction
• Neutral Sentiment: Analysis pieces on prediction markets’ upside — Several analysis articles and TV interviews examine whether prediction markets can materially lift revenue and engagement; useful for context but outcome depends on adoption and monetization. Robinhood: Will Prediction Markets Drive Stock Higher?
• Negative Sentiment: Valuation and market-risk concerns — Coverage notes that HOOD’s rally has left it with an elevated valuation and exposed it to broader market volatility; investors should factor valuation when sizing positions. These 2 Financial Stocks Beat the Market by 208% and 55% in 2025. Should You Buy Them in 2026?
• Negative Sentiment: Political/AI scrutiny — CEO Vlad Tenev has publicly responded to lawmakers’ concerns about AI and retail exposure to private AI firms; heightened political attention can raise regulatory risk and investor uncertainty. Robinhood’s Vlad Tenev Addresses Bernie Sanders’ AI Concerns

Wall Street Analyst Weigh In

HOOD has been the subject of several analyst reports. Zacks Research raised Robinhood Markets from a “hold” rating to a “strong-buy” rating in a research note on Friday, November 28th. Compass Point reiterated a “buy” rating on shares of Robinhood Markets in a research report on Monday, October 27th. Citigroup raised their price target on Robinhood Markets from $120.00 to $135.00 and gave the stock a “neutral” rating in a research note on Tuesday, September 23rd. Dbs Bank raised shares of Robinhood Markets to a “moderate buy” rating in a research note on Wednesday, November 12th. Finally, Keefe, Bruyette & Woods increased their price objective on shares of Robinhood Markets from $121.00 to $135.00 and gave the stock a “market perform” rating in a report on Thursday, November 6th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $137.25.

Robinhood Markets Trading Up 3.6%

The firm has a market capitalization of $109.12 billion, a price-to-earnings ratio of 50.35, a price-to-earnings-growth ratio of 2.31 and a beta of 2.43. The firm has a 50 day moving average price of $129.19 and a two-hundred day moving average price of $113.54.

Robinhood Markets (NASDAQ:HOOD) last posted its earnings results on Wednesday, November 5th. The company reported $0.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.41 by $0.20. Robinhood Markets had a net margin of 52.19% and a return on equity of 21.74%. The firm had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.15 billion. During the same quarter in the prior year, the company earned $0.17 EPS. The company’s revenue was up 100.0% on a year-over-year basis. As a group, research analysts forecast that Robinhood Markets, Inc. will post 1.35 earnings per share for the current year.

Insider Buying and Selling at Robinhood Markets

In other news, CTO Jeffrey Tsvi Pinner sold 5,865 shares of the firm’s stock in a transaction on Friday, December 5th. The shares were sold at an average price of $132.26, for a total value of $775,704.90. Following the transaction, the chief technology officer owned 26,725 shares of the company’s stock, valued at approximately $3,534,648.50. This trade represents a 18.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Steven M. Quirk sold 49,942 shares of Robinhood Markets stock in a transaction on Wednesday, December 3rd. The shares were sold at an average price of $131.15, for a total transaction of $6,549,893.30. Following the transaction, the insider owned 54,496 shares in the company, valued at $7,147,150.40. The trade was a 47.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 3,686,763 shares of company stock worth $475,858,262 over the last three months. 14.47% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Robinhood Markets

Several institutional investors and hedge funds have recently modified their holdings of HOOD. Vanguard Group Inc. boosted its holdings in Robinhood Markets by 24.9% in the 3rd quarter. Vanguard Group Inc. now owns 94,437,054 shares of the company’s stock worth $13,521,497,000 after acquiring an additional 18,824,923 shares during the period. State Street Corp lifted its position in shares of Robinhood Markets by 103.2% during the third quarter. State Street Corp now owns 32,246,155 shares of the company’s stock worth $4,617,004,000 after purchasing an additional 16,375,734 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Robinhood Markets by 4.0% in the second quarter. Geode Capital Management LLC now owns 13,176,539 shares of the company’s stock valued at $1,233,840,000 after purchasing an additional 507,926 shares during the period. WCM Investment Management LLC grew its holdings in Robinhood Markets by 3,615.7% during the 2nd quarter. WCM Investment Management LLC now owns 11,555,160 shares of the company’s stock valued at $1,081,910,000 after purchasing an additional 11,244,182 shares in the last quarter. Finally, Norges Bank purchased a new stake in Robinhood Markets during the 2nd quarter worth $973,122,000. Hedge funds and other institutional investors own 93.27% of the company’s stock.

Robinhood Markets Company Profile

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.