KeyCorp Has Bullish Estimate for Reddit FY2026 Earnings

Reddit Inc. (NYSE:RDDT) – Investment analysts at KeyCorp upped their FY2026 EPS estimates for Reddit in a note issued to investors on Thursday, October 29th. KeyCorp analyst J. Patterson now expects that the company will earn $5.41 per share for the year, up from their prior forecast of $4.90. KeyCorp currently has a “Sector Weight” rating on the stock. The consensus estimate for Reddit’s current full-year earnings is $5.35 per share. KeyCorp also issued estimates for Reddit’s FY2028 earnings at $7.06 EPS.

Several other research analysts have also recently weighed in on the company. JPMorgan Chase & Co. lowered their target price on Reddit from $185.00 to $150.00 and set a “neutral” rating on the stock in a report on Friday, October 30th. DA Davidson reduced their price objective on Reddit from $185.00 to $125.00 and set a “buy” rating on the stock in a research report on Monday. BNP Paribas Exane lowered their price objective on Reddit from $180.00 to $110.00 in a research note on Friday, October 30th. Robert W. Baird set a $185.00 target price on Reddit in a report on Friday, July 31st. Finally, Truist Financial cut their target price on Reddit from $275.00 to $210.00 and set a “buy” rating for the company in a research note on Friday, October 30th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and fifteen have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $180.91.

Reddit Trading Up 5.6%

RDDT stock opened at $96.04 on Wednesday. The company has a market cap of $18.48 billion, a price-to-earnings ratio of 19.60, a PEG ratio of 0.42 and a beta of 2.28. Reddit has a 12 month low of $89.28 and a 12 month high of $263.50. The firm has a 50-day moving average of $147.99 and a two-hundred day moving average of $158.63.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The firm had revenue of $894.96 million for the quarter, compared to analyst estimates of $874.91 million. During the same period in the previous year, the business posted $0.80 earnings per share. Reddit’s quarterly revenue was up 53.0% on a year-over-year basis.

Insider Activity

In other news, COO Jennifer L. Wong sold 60,000 shares of Reddit stock in a transaction that occurred on Wednesday, October 14th. The shares were sold at an average price of $150.55, for a total transaction of $9,033,000.00. Following the sale, the chief operating officer owned 1,012,226 shares of the company’s stock, valued at approximately $152,390,624.30. The trade was a 5.60% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert A. Sauerberg sold 5,128 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total value of $820,069.76. Following the completion of the transaction, the director owned 27,087 shares in the company, valued at $4,331,753.04. This represents a 15.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 288,052 shares of company stock valued at $46,878,483 in the last 90 days. Company insiders own 28.48% of the company’s stock.

Institutional Investors Weigh In On Reddit

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Senvest Management LLC purchased a new stake in shares of Reddit in the first quarter valued at approximately $48,392,000. Robeco Institutional Asset Management B.V. raised its position in Reddit by 74.6% in the third quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock worth $115,243,000 after acquiring an additional 345,735 shares in the last quarter. Wellington Management Group LLP lifted its holdings in Reddit by 21.8% in the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock valued at $271,572,000 after acquiring an additional 280,030 shares during the period. Styrax Capital LP purchased a new stake in shares of Reddit during the 2nd quarter worth $43,395,000. Finally, State Street Corp boosted its position in shares of Reddit by 8.7% during the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company’s stock worth $517,197,000 after purchasing an additional 237,523 shares in the last quarter.

Key Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit is testing ads in search results, creating another way to monetize users already on the platform. This could help offset pressure from declining search traffic, though the test’s financial impact is not yet known. Article: Reddit tests ads in search results
• Positive Sentiment: The company’s latest reported quarter showed 53% year-over-year revenue growth and earnings above analyst expectations, evidence of continued business momentum despite the recent share-price decline. Article: Reddit Stock Plunges 30% Post Q3 Earnings
• Neutral Sentiment: KeyCorp raised its Q4 earnings estimate slightly but lowered its FY2027 forecast, a mixed signal on Reddit’s near-term earnings prospects. Article: KeyCorp earnings estimates
• Negative Sentiment: Declining search traffic and cautious revenue guidance have overshadowed the earnings beat. Investors are concerned that changes in how search engines and AI services surface Reddit content could weaken traffic and growth, particularly among users who are not logged in. Article: RDDT Q3 deep dive
• Negative Sentiment: Loop Capital and Evercore lowered their ratings to Hold, adding to the cautious analyst tone after the selloff. Article: Loop Capital lowers Reddit rating Article: Evercore lowers Reddit rating

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.