HOOD Stock Plunges as Goldman Sachs Sets New Price Target for Robinhood

HOOD stock of commission-free stock and trading platform Robinhood Markets experienced downward pressure on Monday following an adjustment to its price target by Goldman Sachs. This comes after the company release Janauary monthly metrics.

Goldman Sachs Maintains Buy Rating on Robinhood, But Cuts Price Target

Goldman Sachs analyst James Yaro has reduced HOOD stock price target from $130 to $111, while reaffirming a “buy” rating on Robinhood. Wall Street analyst joins other analysts to cut the price target after a disappointing Q4 earnings report and bearish pressure in the crypto market.

This comes as Robinhood disclosed its monthly metrics, reporting 27.2 million funded customers at the end of January, an increase of 190,000 from December. Also, the total platform assets jumped were $324 billion, rising 1% from December and spiking 59% YoY.

Robinhood recorded $4.5 billion in net deposits for the month, representing a 17% annualized growth rate compared to December’s total platform assets.

Equity notional trading volumes increased 21% from December and surged 57% YoY. Crypto notional trading volumes increased 8% from December to $22.9 billion, representing 12% growth from last year. Robinhood also reported 200 million in options contracts traded, which was flat from December but up 20% YoY.

Goldman Sachs analyst noted that platform activity remained robust, as Robinhood app downloads increased 30% month over month. He added that daily commission rose 13% to $10 million, which prompted an update to January-adjusted estimates.

HOOD Stock Falls Over 1%

HOOD stock slips more than 1% to $75.10 on Monday as trades noted a crypto market crash and Bitcoin price slump below $65K again.

On Friday, Robinhood stock closed 0.61% higher at $76.11. The intraday low and high were 75.13 and 78.08, respectively. Trading volume was also higher than the average of almost 27 million.

The stock is down more than 32% YTD after Robinhood missed Q4 revenue estimates. HOOD stock remained in a downtrend since October.

As CoinGape reported earlier, Mizuho Securities also cut its 12-month price target on HOOD stock from $172 to $135, while retaining an ‘outperform’ rating. The firm sees Robinhood’s strengths in user engagement and new opportunities.

Cantor Fitzgerald also reaffirmed an “overweight” rating and set a $130 price target. HOOD stock has an average target of $128.