ARK Invest Trims HOOD as Robinhood Plans Move Into IPO Underwriting (NASDAQ: HOOD)

Robinhood Markets (NASDAQ: HOOD) made headlines on two fronts Thursday: the company announced plans to enter the IPO underwriting market as a licensed underwriter, a significant expansion of its brokerage footprint, while Cathie Wood's ARK Invest reduced its position in the stock even as shares climbed. HOOD closed at $92.23 on Thursday, June 11, up 6.80% on the session.

Robinhood Moves Into IPO Underwriting

• Robinhood announced plans to enter the IPO market as an underwriter, according to reporting from Investor's Business Daily and Yahoo Finance, marking a direct push into a business historically dominated by major Wall Street banks.
• The move follows a cluster of catalysts that lifted shares as much as 8% intraday on June 10, including a regulatory milestone and strong monthly trading data, per Yahoo Finance reporting.
• Goldman Sachs and Needham both raised price targets on HOOD, citing the May trading metrics as a driver, according to TipRanks.
• ARK Invest sold shares of HOOD during the June 10 rally, trimming a position that had been among the fund's more prominent holdings, per reporting from Yahoo Finance and TheStreet.

Why It Matters

Robinhood's move into IPO underwriting represents a concrete step beyond its retail brokerage origins. If confirmed through official disclosures, the company would gain access to fee revenue from capital markets transactions, a structurally different and potentially higher-margin revenue stream than payment for order flow or margin interest income.

ARK Invest's decision to sell into the rally introduces a notable counterpoint. While the firm has not publicly detailed the size or rationale of the trim, the sale during a session when multiple positive catalysts converged suggests the position reduction was deliberate rather than routine rebalancing. The divergence between rising institutional price targets and ARK's selling reflects differing views on near-term valuation.

Wall Street View

Analyst sentiment on HOOD remains constructive. As of June 1, 2026, the consensus stood at 8 Strong Buy, 18 Buy, 5 Hold, and 1 Sell, with no Strong Sell ratings. Goldman Sachs and Needham both lifted price targets following the May trading data release, per TipRanks, though specific target figures were not available in the source data. The overall recommendation profile is modestly less bullish than the prior month's tally of 9 Strong Buy and 19 Buy, suggesting marginal softening at the margin even as coverage remains overwhelmingly positive.

Investor Takeaway

Robinhood's reported entry into IPO underwriting, if confirmed through official filings, would mark the most significant business expansion the company has disclosed in recent months and could open a new revenue category beyond its retail trading base. ARK Invest's decision to reduce exposure during the June 10 rally serves as a reminder that near-term price appreciation does not guarantee continued institutional accumulation. Investors should monitor official SEC filings and company press releases for confirmation of the underwriting structure and licensing details before drawing conclusions about the financial impact.