Reddit (NYSE:RDDT) Downgraded by Wall Street Zen to Hold

Wall Street Zen lowered shares of Reddit (NYSE:RDDT) from a buy rating to a hold rating in a report published on Saturday morning.

A number of other research analysts have also recently issued reports on the stock. Piper Sandler reaffirmed an “overweight” rating on shares of Reddit in a report on Monday, December 1st. Raymond James Financial restated a “strong-buy” rating and issued a $250.00 price target (up previously from $225.00) on shares of Reddit in a report on Monday, October 20th. Cantor Fitzgerald started coverage on Reddit in a report on Thursday. They set a “neutral” rating and a $240.00 price objective for the company. Morgan Stanley reiterated an “overweight” rating and set a $250.00 target price on shares of Reddit in a research report on Friday, October 31st. Finally, Needham & Company LLC restated a “buy” rating and issued a $300.00 price target on shares of Reddit in a research report on Monday, December 29th. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $232.58.

Reddit Stock Performance

Reddit stock opened at $244.71 on Friday. The company has a market cap of $46.37 billion, a P/E ratio of 140.64, a price-to-earnings-growth ratio of 1.64 and a beta of 2.17. Reddit has a one year low of $79.75 and a one year high of $282.95. The business has a fifty day moving average of $218.41 and a two-hundred day moving average of $207.33.

Reddit (NYSE:RDDT) last announced its quarterly earnings results on Thursday, October 30th. The company reported $0.80 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.50 by $0.30. Reddit had a net margin of 18.33% and a return on equity of 14.94%. The business had revenue of $584.91 million during the quarter, compared to the consensus estimate of $546.65 million. During the same quarter last year, the firm posted $0.16 EPS. The business’s revenue was up 67.9% compared to the same quarter last year. Sell-side analysts predict that Reddit will post 1.12 EPS for the current year.

Insider Activity

In other news, COO Jennifer L. Wong sold 63,427 shares of Reddit stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $192.72, for a total transaction of $12,223,651.44. Following the completion of the sale, the chief operating officer directly owned 1,184,528 shares in the company, valued at $228,282,236.16. The trade was a 5.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CTO Christopher Brian Slowe sold 24,000 shares of the company’s stock in a transaction that occurred on Monday, November 24th. The shares were sold at an average price of $192.72, for a total transaction of $4,625,280.00. Following the transaction, the chief technology officer directly owned 175,694 shares in the company, valued at $33,859,747.68. The trade was a 12.02% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 505,496 shares of company stock worth $108,036,192. Company insiders own 34.25% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of RDDT. Vanguard Group Inc. boosted its holdings in shares of Reddit by 12.9% during the third quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company’s stock worth $2,814,734,000 after purchasing an additional 1,401,293 shares during the last quarter. State Street Corp lifted its position in Reddit by 22.3% during the third quarter. State Street Corp now owns 2,481,931 shares of the company’s stock worth $570,819,000 after buying an additional 451,792 shares during the period. JPMorgan Chase & Co. boosted its stake in Reddit by 7.5% in the 2nd quarter. JPMorgan Chase & Co. now owns 2,051,175 shares of the company’s stock worth $308,846,000 after buying an additional 143,680 shares during the last quarter. Geode Capital Management LLC boosted its stake in Reddit by 72.1% in the 2nd quarter. Geode Capital Management LLC now owns 1,989,004 shares of the company’s stock worth $299,044,000 after buying an additional 833,245 shares during the last quarter. Finally, Norges Bank purchased a new stake in Reddit in the 2nd quarter valued at about $294,254,000.

Key Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Third‑party product coverage widening Reddit’s visibility — Ahrefs added Reddit to its Brand Radar tracking (now covers YouTube, TikTok and Reddit), which can increase marketer awareness and make Reddit mentions more actionable for advertisers. This is a modest positive for ad monetization and brand measurement. Ahrefs Adds YouTube and Reddit Tracking to Brand Radar
• Neutral Sentiment: Cantor Fitzgerald initiated coverage with a “neutral” rating and a $240 price target (slightly below current levels). New coverage and a near‑term price target below the market can limit upside but doesn’t signal a change to Reddit’s long‑term growth story; it may contribute to cautious trader positioning. Analyst Coverage Note
• Negative Sentiment: Insider selling by CFO Andrew Vollero — filings show sales on Jan 6 (8,413 shares at ~$252.72) and Jan 7 (500 shares at ~$260.06). While the CFO still holds ~255k shares (valued in the tens of millions), the high‑profile insider sales — particularly the larger Jan 6 block — can send a negative near‑term signal to traders and may weigh on sentiment. Insider Selling: Reddit CFO Sells Shares
• Negative Sentiment: Reputational/ content‑risk coverage — a New York Times podcast discussed misuse of AI tools to push abusive/political content (context includes platforms and moderation challenges). Any spotlight on content or AI‑driven moderation failures can raise advertiser and regulatory concerns, pressuring sentiment until moderation/AI controls are clarified. Grok’s Undressing Scandal + Claude Code Capers

About Reddit

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called “subreddits,” each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.