Argus raised its price target for Robinhood Markets (NASDAQ:HOOD) shares to $110 from $90, while maintaining a Buy rating. This adjustment follows Robinhood’s announcement of a workforce reduction. The brokerage platform’s shares currently trade at $96.71, with an $87 billion market capitalization.
Robinhood stated on Monday that it would cut 10% of its workforce, which recently totaled 2,900 employees. This reduction aims to create a less layered organization, facilitate faster decision-making, and accelerate product development. The company anticipates incurring $28 million in restructuring costs, with $20 million allocated for employee severance and benefits, and $8 million for share-based compensation. These charges are expected to be recognized in the second quarter of 2026.
The company introduced new offerings in the first quarter, including trust and custodial accounts as part of a family investing experience. Robinhood also rolled out the Robinhood Platinum card and launched the Robinhood Ventures Fund, designed to provide retail investors with exposure to companies before their public listing.
Argus noted that Robinhood shares have increased approximately 35% since the company reported its first-quarter earnings. This gain is attributed to a more volatile trading environment, influenced by the Iran conflict and its potential resolution, alongside a recent stabilization in bitcoin prices. The company’s revenue growth reached 41.5%, indicating an expanding market presence.
The firm revised its earnings per share estimates and price target to reflect an improved trading environment. This adjustment also factors in a modest reduction in headcount expense growth. InvestingPro’s Fair Value analysis suggests the stock appears overvalued at its current trading price.
In related news, Needham also raised its price target for Robinhood to $97. This increase was based on strong performance metrics observed in May, particularly in equities and event contracts, despite a decline in crypto volumes. The Securities and Exchange Commission has proposed eliminating the Order Protection Rule, a move that could affect trading practices by reducing connectivity and compliance costs for brokerages.
The impact of the proposed SEC rule change on Robinhood’s operational costs and trading volumes remains to be seen. Investors will monitor how the company’s restructuring efforts translate into sustained product velocity and profitability, especially given the anticipated recognition of restructuring charges in 2026. The interplay between market volatility, new product offerings, and cost management will be key to Robinhood’s future performance.