Robinhood shares fall on Wolfe downgrade, Wells Fargo cut

Robinhood Markets stock dropped 5.1% in morning trading Wednesday to $104.86 after receiving downgrades from two financial institutions.

Wolfe Research downgraded the stock to Peer Perform from Outperform. Analyst Steven Chubak said the key drivers behind the firm's bullish thesis have "largely played out" and are now fully reflected in the current share price and valuation.

Wells Fargo maintained its Equal Weight rating but lowered its price target to $120 from $125, reducing near-term upside expectations for the stock.

The stock trades at a price-to-earnings ratio near 49. InvestingPro flagged the shares as overvalued relative to estimated fair value.

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