Robinhood (HOOD) Stock Faces Price Target Reductions From Five Wall Street Firms

Key Takeaways

• Five Wall Street firms reduced Robinhood (HOOD) price targets during the first week of April, driven by declining revenue projections and weaker trading activity.
• The most significant reduction came from Wolfe Research, which decreased its price objective by 30% from $115 down to $81 on April 1.
• Mizuho Securities adjusted its target to $105 from $110, reducing revenue projections for 2026 and 2027 by 5% and EBITDA forecasts by 8%.
• The platform was announced as a partner in the Trump Accounts program, committing $1,000 contributions for qualifying employee children.
• The company’s banking division surpassed $1.5 billion in customer deposits from approximately 100,000 funded accounts.

The opening days of April brought challenging news for Robinhood (HOOD) shareholders, as no fewer than five prominent Wall Street analysts revised their price expectations downward within a single week. The stock has tumbled 52% during the past six months, despite the company delivering impressive 52% revenue expansion over the trailing twelve-month period.

Robinhood Markets, Inc., HOOD

The target reductions arrived as cryptocurrency retail trading activity decelerated on the platform, while macroeconomic headwinds created pressure across the entire brokerage industry.

Wolfe Research initiated the downgrade cycle on April 1, reducing its price objective by a substantial 30% from $115 to $81. Analyst Steven Chubak identified weakening crypto retail trading as the primary catalyst, while maintaining his “Outperform” stance on the shares.

The following day, April 2, Needham analyst John Todaro decreased his target from $100 to $90, preserving his Buy recommendation. He expressed skepticism about labeling Robinhood as a “financial super app” at this stage, highlighting that current volume data and diminished net interest revenue suggest a more subdued operating environment.

Needham simultaneously reduced its revenue projections for both 2026 and 2027, attributing the adjustment to anticipated decreases in trading volumes and net interest income.

Compass Point analyst Ed Engel reduced his price target by 15% on April 2, moving from $127 to $108, pointing to weaker first-quarter key performance indicators. He maintained his Buy rating and reaffirmed the $108 target on April 6 after the Trump Accounts announcement.

Wall Street Maintains Positive Outlook Despite Adjustments

Notably, despite the cascade of price target reductions, each of the five firms preserved either a Buy or Outperform rating on Robinhood shares.

Jefferies lowered its target from $88 to $84 on April 6, while maintaining a Buy recommendation. Mizuho followed suit the same day, adjusting from $110 to $105 while retaining its Outperform stance.

Mizuho acknowledged that its revised forward estimates might prove too conservative and emphasized that it “remains constructive” on the investment opportunity.

The firm decreased its 2026 and 2027 revenue expectations by 5% and EBITDA projections by 8%, attributing the changes to softer net interest income and a higher proportion of cryptocurrency traders, who generate lower revenue capture rates.

Mizuho did highlight one encouraging development: event contract per diem metrics increased 12% in March to approximately 96.3 million, rebounding from a three-month low of around 85.7 million.

Partnership With Trump Accounts Program

On April 6, the U.S. Treasury Department announced Robinhood as an official partner in the Trump Accounts program. The company will function as both the brokerage platform and initial trustee for this initiative.

Robinhood announced it would provide $1,000 to each account established for eligible children of company employees.

Additionally, the company’s banking operation surpassed $1.5 billion in total deposits from nearly 100,000 funded customer accounts, representing a 50% deposit increase, according to CEO Vlad Tenev.

Raymond James continued its Market Perform rating, observing decreased trading volumes as both equity and cryptocurrency markets retreated heading into the first-quarter earnings period.

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