Cantor Fitzgerald Has Lowered Expectations for Reddit (NYSE:RDDT) Stock Price

Reddit (NYSE:RDDT) had its target price cut by equities researchers at Cantor Fitzgerald from $170.00 to $120.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage currently has a “neutral” rating on the stock. Cantor Fitzgerald‘s price target indicates a potential downside of 7.90% from the stock’s previous close.

Other research analysts also recently issued reports about the stock. Evercore reaffirmed an “outperform” rating on shares of Reddit in a research report on Monday. Wells Fargo & Company lowered their price target on shares of Reddit from $187.00 to $142.00 and set an “equal weight” rating on the stock in a report on Friday, July 31st. Piper Sandler reaffirmed an “overweight” rating and issued a $195.00 price target (down from $215.00) on shares of Reddit in a research note on Friday, July 31st. Wall Street Zen cut Reddit from a “buy” rating to a “hold” rating in a research report on Sunday, August 9th. Finally, Bank of America reissued a “neutral” rating on shares of Reddit in a research report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and thirteen have given a Hold rating to the stock. Based on data from MarketBeat.com, Reddit presently has an average rating of “Moderate Buy” and an average price target of $217.68.

Reddit Trading Down 3.3%

Shares of Reddit stock opened at $130.29 on Friday. Reddit has a 1 year low of $119.27 and a 1 year high of $263.50. The company has a market cap of $25.07 billion, a P/E ratio of 31.33, a P/E/G ratio of 0.62 and a beta of 2.05. The stock has a 50-day moving average price of $151.54 and a 200 day moving average price of $161.02.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.07. The company had revenue of $894.96 million for the quarter, compared to analysts’ expectations of $874.91 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%. The business’s revenue for the quarter was up 53.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.80 EPS. On average, equities analysts forecast that Reddit will post 5.28 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Robert A. Sauerberg sold 5,128 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the transaction, the director directly owned 27,087 shares of the company’s stock, valued at approximately $4,331,753.04. This trade represents a 15.92% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, COO Jennifer L. Wong sold 60,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 14th. The stock was sold at an average price of $150.55, for a total value of $9,033,000.00. Following the sale, the chief operating officer directly owned 1,012,226 shares of the company’s stock, valued at $152,390,624.30. The trade was a 5.60% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 306,052 shares of company stock valued at $49,754,523 over the last quarter. Insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

Large investors have recently modified their holdings of the company. Evansbrook LLC boosted its holdings in Reddit by 2.2% in the 1st quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock valued at $368,000 after purchasing an additional 59 shares during the period. Signaturefd LLC increased its holdings in shares of Reddit by 7.6% during the 2nd quarter. Signaturefd LLC now owns 878 shares of the company’s stock worth $152,000 after purchasing an additional 62 shares during the period. EverSource Wealth Advisors LLC raised its position in shares of Reddit by 48.1% during the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after buying an additional 64 shares during the last quarter. Versant Capital Management Inc lifted its stake in shares of Reddit by 31.1% in the second quarter. Versant Capital Management Inc now owns 291 shares of the company’s stock valued at $51,000 after buying an additional 69 shares during the period. Finally, Central Pacific Bank Trust Division lifted its stake in shares of Reddit by 8.6% in the third quarter. Central Pacific Bank Trust Division now owns 885 shares of the company’s stock valued at $126,000 after buying an additional 70 shares during the period.

Key Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q3 results exceeded expectations: Reddit reported $894.96 million in revenue, up 53% year over year and above the $874.91 million consensus estimate. Adjusted earnings of $1.40 per share also surpassed the $1.33 estimate, compared with $0.80 a year earlier. Reddit Reports Third Quarter 2026 Results
• Positive Sentiment: Profitability remained strong: Net income increased 74%, while Reddit posted a 31.35% net margin and 29.02% return on equity. The results extend the company’s record of beating earnings expectations. Reddit Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Analyst support provided a partial offset: Zacks Research upgraded Reddit from “hold” to “strong buy,” potentially supporting sentiment after the selloff. Zacks Research Rating
• Neutral Sentiment: Product changes could improve engagement but carry execution risk: Reddit is testing “For You” and “Following” feeds and plans to move toward a primarily logged-in experience to limit content scraping. More logins could improve user data and monetization, but may reduce casual traffic. Reddit Login Requirement
• Negative Sentiment: Growth quality and outlook raised concerns: U.S. daily users fell by 0.9 million, while international users increased by 15.2 million. Because U.S. users generate substantially more revenue, the geographic mix could pressure monetization. Reports also indicated that fourth-quarter guidance fell short of expectations. Reddit Earns More From Fewer U.S. Users
• Negative Sentiment: Search traffic is deteriorating: Declining Google referrals, partly attributed to AI-powered search, threaten a major source of new visitors. Requiring logins could further reduce open-web discovery, explaining why investors reacted negatively despite the earnings beat. Reddit Search Traffic Declines

Reddit Company Profile

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and activities. Members can submit text posts, links, images and videos, as well as comment on and vote on content. The platform includes thousands of communities, commonly known as subreddits, covering subjects such as news, entertainment, technology, sports, finance and lifestyle.

Reddit generates revenue primarily through digital advertising, offering advertisers access to audiences based on community interests and user engagement.