Robinhood (HOOD) Stock Hits Turbulence After Three Price Target Cuts in Two Days

TLDR

• Needham cut its price target on HOOD from $100 to $90, maintaining a Buy rating
• Compass Point slashed its target from $127 to $108, also keeping a Buy rating
• March metrics showed slowed equity, options, and crypto trading volumes
• HOOD is down 52% over the past six months and 38% year-to-date
• Robinhood’s banking division has surpassed $1.5 billion in deposits

Robinhood has had a rough week. Multiple analysts have trimmed their price targets on the stock after the company released softer-than-expected March trading metrics.

Robinhood Markets, Inc., HOOD

Needham analyst John Todaro cut his price target from $100 to $90 on Wednesday, while holding his Buy rating. He pointed to slower growth across nearly every part of the platform.

The March data, released on March 30, showed equity notional trading volumes of around $196 billion. Options contracts traded came in at 187 million, and crypto notional trading volumes hit $16 billion.

Todaro lowered his equities and options estimates for Q1 2026 but kept crypto volume projections flat, saying declines there were already baked into prior estimates. He also cut revenue forecasts for 2026 and 2027, driven by lower expected trading volumes and reduced net interest revenues.

The new $90 target is based on 27 times Needham’s discounted fiscal year 2027 EV/EBITDA estimate.

This followed a move by Wolfe Research analyst Steven Chubak just a day earlier, who cut his price target from $115 to $81 — a drop of roughly 30%. That revision came after crypto transaction revenue fell, compounded by broader weakness in the crypto market.

Compass Point Also Trims Forecast

Compass Point analyst Ed Engel also reduced his price target on Wednesday, cutting from $127 to $108 while keeping a Buy rating. His models put Q1 revenue 9% below consensus, with misses across all three business segments.

Engel noted that retail trading historically slows after five to six consecutive months of choppy markets, and that most retail-favorite stocks are broadly lower since early October.

He drew a comparison to April 2025, when Wall Street was cutting forecasts ahead of Liberation Day. Engel suggested that a market recovery could make Robinhood a key beneficiary given the 2026 IPO pipeline.

HOOD stock has now fallen 52% over the past six months and sits 46% below its 52-week high of $153.86. The stock carries a P/E ratio of 34.14 and a market cap of $63.1 billion. InvestingPro flags the stock as overvalued at current levels.

Banking Division Offers a Bright Spot

Not everything is pointing down. Robinhood’s banking division has crossed $1.5 billion in deposits, with nearly 100,000 funded customers — a roughly 50% increase in deposits over a recent period.

Bernstein SocGen Group cut its price target from $160 to $130, but kept an Outperform rating. The firm still projects 25% earnings per share growth by 2026 and a 30% revenue CAGR from 2025 to 2027.

Jefferies initiated coverage with a Buy rating and an $88 price target, citing potential from increased global retail participation and a broad product set.

On TipRanks, HOOD holds a Strong Buy consensus based on 15 Buy and 2 Hold ratings, with a consensus price target of $117.33 — implying roughly 67% upside from current levels. The highest price target on the stock stands at $147.

Full Q1 results are expected in May.

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