Reddit (NYSE:RDDT) Stock Gets Price Target Reduction from Jefferies Financial Group

Reddit (NYSE:RDDT) had its price target decreased by Jefferies Financial Group from $200.00 to $155.00 in a report released on Friday morning.

Other equities analysts also recently issued research reports about the company. Oppenheimer downgraded Reddit from an “outperform” rating to a “market perform” rating in a research report on Friday. Telsey Advisory Group set a $240.00 target price on Reddit in a report on Friday, July 31st. Raymond James Financial restated a “strong-buy” rating and set a $205.00 target price on shares of Reddit in a report on Monday, August 17th. Citizens Jmp lowered Reddit from a “market outperform” rating to a “market perform” rating in a research note on Friday. Finally, Guggenheim cut their price target on Reddit from $255.00 to $170.00 and set a “buy” rating for the company in a report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and fifteen have assigned a Hold rating to the stock. According to MarketBeat.com, Reddit presently has a consensus rating of “Moderate Buy” and a consensus target price of $180.91.

Reddit Price Performance

Shares of NYSE:RDDT traded down $0.85 during trading on Friday, reaching $90.88. The stock had a trading volume of 9,154,382 shares, compared to its average volume of 5,543,015. Reddit has a 52 week low of $89.28 and a 52 week high of $263.50. The business’s 50-day moving average price is $150.37 and its 200 day moving average price is $160.26. The stock has a market capitalization of $17.49 billion, a PE ratio of 18.64, a P/E/G ratio of 0.42 and a beta of 2.05.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, October 29th. The company reported $1.40 EPS for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. The business had revenue of $894.96 million for the quarter, compared to analyst estimates of $874.91 million. Reddit had a return on equity of 30.57% and a net margin of 32.10%. Reddit’s revenue for the quarter was up 53.0% on a year-over-year basis. During the same period in the prior year, the company earned $0.80 EPS. Analysts forecast that Reddit will post 5.28 EPS for the current year.

Insider Activity at Reddit

In related news, Director Robert A. 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 transaction, the director owned 27,087 shares in the company, valued at $4,331,753.04. This trade represents a 15.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Steve Huffman sold 17,308 shares of Reddit stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $158.57, for a total value of $2,744,529.56. Following the completion of the sale, the chief executive officer owned 336,432 shares of the company’s stock, valued at approximately $53,348,022.24. The trade was a 4.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 306,052 shares of company stock valued at $49,754,523 over the last quarter. Corporate insiders own 28.48% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. State Street Corp lifted 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 buying an additional 237,523 shares during the period. Wellington Management Group LLP grew its holdings in 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 acquiring an additional 280,030 shares during the period. DSM Capital Partners LLC grew its holdings in Reddit by 5.3% during the 1st quarter. DSM Capital Partners LLC now owns 848,206 shares of the company’s stock worth $114,211,000 after acquiring an additional 42,808 shares during the period. Robeco Institutional Asset Management B.V. raised its position in shares of Reddit by 74.6% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock valued at $115,243,000 after acquiring an additional 345,735 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Reddit by 8.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 481,893 shares of the company’s stock valued at $83,647,000 after acquiring an additional 39,540 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.