Robinhood Stock Hit by 14% Price Target Cut Ahead of Earnings

Robinhood (HOOD) stock was hit by a price target cut from Citizens JMP's top analyst Devin Ryan, ahead of first-quarter earnings season. He maintained a Buy rating but trimmed the target from $180 to $155, which still suggests 121% upside potential.Easter Sale - 70% Off TipRanksUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks Robinhood Markets runs a U.S.-focused financial app for everyday investors. It provides commission-free trading of stocks, options, crypto, and more through a simple mobile platform. The price target adjustment comes amid weaker transaction volumes, especially in crypto, plus lower net interest income due to reduced securities lending in quiet markets and less short-selling demand. Ryan is a five-star analyst on TipRanks, ranking #34 out of 12,128 analysts tracked. He has a 66% success rate and an impressive average return per rating of 32%. Weaker Market Backdrop Calls for Rerating Ryan lowered his 1Q FY26 adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) forecast to $573.1 million. This is 10% below the consensus of $639.6 million. Robinhood is expected to release its Q1 results on April 28. The Street expects the firm to post adjusted earnings of $0.43 per share on revenue of $1.18 billion. Ryan also reduced 1Q earnings per share (EPS) to $0.40, below the consensus. Lower profits are expected due to fewer trades and weaker interest earnings from lending stocks in slow markets with low short-selling. Robinhood earns from transaction-based fees and interest on its assets and net loans. Quiet capital markets mean less activity in these areas, hitting 1Q26 results. For 2026 and 2027, Ryan lowered profit estimates because he expects users to trade less actively. He is being more cautious about how much trading activity Robinhood can sustain over the next two years. Is HOOD Stock a Good Buy Now? On TipRanks, HOOD has a Strong Buy consensus rating based on 14 Buys and three Hold ratings. The average Robinhood Markets price target of $109.67 implies 56.4% upside potential from current levels. Year-to-date, HOOD shares have plunged 38%.