April has proven to be a challenging month for Robinhood (HOOD), marked by a series of price target reductions from multiple analysts due to signs of slowing trading activities and softer revenue streams. Specifically, Robinhood’s stock has plummeted by 52% over the past six months, despite the company announcing a 52% growth in revenue year-over-year.
On April 1, Wolfe Research highlighted the downturn by slashing its price target by a significant 30%, reducing it from $115 to $81. Analyst Steven Chubak pointed out that the deceleration of crypto trading was a pivotal factor in this decision, yet he maintained an “Outperform” rating on the stock.
Following closely behind, Needham analyst John Todaro adjusted his target on April 2, bringing it down from $100 to $90 while still recommending a Buy. He emphasized that it remains premature to label Robinhood a “financial super app,” given the latest trading volume metrics and diminishing net interest revenue suggesting a more subdued market environment.
Compass Point’s Ed Engel also cut his price target on April 2 by 15%, lowering it from $127 to $108, based on soft key performance indicators for the first quarter, while affirming his Buy rating. Engel reiterated his target adjustment on April 6 following Robinhood’s announcement regarding the Trump Accounts initiative, which has positioned the company as a key partner.
Analysts Show Continued Optimism
Despite the downward revisions in target prices, all firms involved have kept a Buy or Outperform rating. On April 6, Jefferies reduced its target from $88 to $84 while maintaining its Buy recommendation. Mizuho echoed this sentiment by lowering its target from $110 to $105, but held fast to its Outperform rating, suggesting its forecasts may still be conservative given the evolving market conditions.
Mizuho also adjusted its revenue forecasts for 2026 and 2027 downward by 5% and EBITDA estimates by 8%, attributing this to a lower share of more lucrative retail traders and broader challenges in the liquidity environment. However, a positive sign emerged, with the event contract per diem trends experiencing a 12% uptick in March, suggesting some activity resurgence.
A New Initiative with Trump Accounts
In a notable development for the company, the U.S. Treasury Department officially announced on April 6 that Robinhood would play a crucial role in the Trump Accounts initiative as the primary brokerage and initial trustee. This partnership includes a commitment from Robinhood to deposit $1,000 into accounts set up for the eligible children of its employees.
In addition to these developments, Robinhood’s banking division recently surpassed $1.5 billion in deposits from nearly 100,000 funded customers, marking a substantial 50% increase as highlighted by CEO Vlad Tenev. Meanwhile, Raymond James has maintained a Market Perform rating as trading volumes have naturally declined amid a bearish trend across both equity and crypto markets as they approach the forthcoming first-quarter results.
Despite the fluctuations, the sentiment surrounding Robinhood remains cautiously optimistic as analysts navigate the complexities of a changing market landscape.
