Jefferies Financial Group Has Lowered Expectations for Reddit (NYSE:RDDT) Stock Price

Reddit (NYSE:RDDT) had its price target lowered by equities research analysts at Jefferies Financial Group from $200.00 to $155.00 in a research report issued to clients and investors on Friday. Jefferies Financial Group‘s price objective points to a potential upside of 69.87% from the company’s current price.

A number of other equities research analysts have also recently commented on RDDT. Cantor Fitzgerald lowered their target price on Reddit from $170.00 to $120.00 and set a “neutral” rating on the stock in a report on Friday. Wall Street Zen cut Reddit from a “buy” rating to a “hold” rating in a report on Sunday, August 9th. Robert W. Baird set a $185.00 price objective on Reddit in a research report on Friday, July 31st. BNP Paribas Exane decreased their price objective on Reddit from $180.00 to $110.00 in a research note on Friday. Finally, The Goldman Sachs Group dropped their price objective on Reddit from $215.00 to $140.00 in a research report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and fifteen have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Reddit currently has an average rating of “Moderate Buy” and a consensus price target of $180.91.

Reddit Trading Down 0.5%

Shares of RDDT stock traded down $0.48 during trading hours on Friday, hitting $91.25. The company’s stock had a trading volume of 9,015,418 shares, compared to its average volume of 5,541,294. The business has a fifty day moving average of $150.37 and a 200-day moving average of $160.26. The stock has a market cap of $17.56 billion, a price-to-earnings ratio of 18.68, a P/E/G ratio of 0.42 and a beta of 2.05. Reddit has a twelve month low of $89.28 and a twelve month high of $263.50.

Reddit (NYSE:RDDT) last issued its quarterly earnings data 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 business had revenue of $894.96 million during the quarter, compared to analysts’ expectations of $874.91 million. During the same period last year, the company posted $0.80 EPS. The company’s revenue was up 53.0% on a year-over-year basis. On average, equities analysts expect that Reddit will post 5.28 EPS for the current fiscal year.

Insider Buying and Selling

In other Reddit news, Director Robert Sauerberg sold 5,128 shares of the firm’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the sale, 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 filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Jennifer Wong sold 75,000 shares of Reddit stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $178.55, for a total value of $13,391,250.00. Following the completion of the sale, the chief operating officer owned 1,050,339 shares of the company’s stock, valued at $187,538,028.45. This trade represents a 6.66% 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. Over the last ninety days, insiders have sold 306,052 shares of company stock worth $49,754,523. 28.48% of the stock is owned by company insiders.

Hedge Funds Weigh In On Reddit

Large investors have recently bought and sold shares of the stock. Wellington Management Group LLP increased its holdings in shares of Reddit by 21.8% during the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock worth $271,572,000 after buying an additional 280,030 shares during the last quarter. State Street Corp boosted its holdings in Reddit by 8.7% in the second quarter. State Street Corp now owns 2,979,587 shares of the company’s stock valued at $517,197,000 after acquiring an additional 237,523 shares during the last quarter. Moore Capital Management LP grew its position in Reddit by 611.4% during the second quarter. Moore Capital Management LP now owns 12,577 shares of the company’s stock valued at $2,183,000 after acquiring an additional 10,809 shares during the period. Light Street Capital Management LLC purchased a new stake in Reddit during the second quarter valued at about $31,678,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab increased its stake in Reddit by 102.3% during the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 19,120 shares of the company’s stock worth $3,319,000 after acquiring an additional 9,670 shares during the last quarter.

Key Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s latest quarterly results showed substantial operating momentum: revenue rose 53% year over year to approximately $895 million, while earnings per share exceeded analyst expectations. Advertising engagement and higher average revenue per user could support the company’s long-term monetization outlook. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Some investors view the decline as excessive relative to Reddit’s revenue growth and profitability, arguing that fears over Google’s AI search changes may already be reflected in the valuation. Reddit Stock Crashes Again: Is the Stock a Buy on the Dip or a Value Trap?
• Neutral Sentiment: A valuation comparison with Spotify highlights Reddit as a potential value opportunity, but the conclusion depends on whether investors prioritize Reddit’s faster growth or Spotify’s more established user and revenue trends. RDDT vs. SPOT: Which Stock Is the Better Value Option?
• Negative Sentiment: The primary pressure is a worsening user-growth outlook. Google’s AI search changes appear to be reducing traffic to Reddit, particularly in the U.S., while management’s push toward logged-in users could protect monetization but make it harder and more expensive to attract new users. Reddit Stock Plunges After Google AI Cuts U.S. Traffic
• Negative Sentiment: Several firms reduced their ratings or price targets, including JPMorgan, Evercore, Loop Capital, Oppenheimer, Citigroup, Cantor Fitzgerald, Truist, Wells Fargo and Wedbush. Although many revised targets remain above the current market level, the broad analyst caution is weighing on confidence in RDDT’s near-term outlook.

About Reddit

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.