Reddit (NYSE:RDDT) Price Target Cut to $170.00 by Analysts at Cantor Fitzgerald

Reddit (NYSE:RDDT) had its price objective decreased by research analysts at Cantor Fitzgerald from $200.00 to $170.00 in a report released on Friday,Benzinga reports. The brokerage presently has a “neutral” rating on the stock. Cantor Fitzgerald’s target price indicates a potential upside of 22.32% from the company’s previous close.

Other equities analysts have also issued reports about the stock. DA Davidson reaffirmed a “buy” rating and set a $200.00 price target on shares of Reddit in a research report on Thursday, July 23rd. Weiss Ratings restated a “hold (c)” rating on shares of Reddit in a research report on Friday, May 8th. Evercore reaffirmed an “outperform” rating and set a $265.00 target price on shares of Reddit in a report on Friday. Oppenheimer reiterated an “outperform” rating and issued a $225.00 price target on shares of Reddit in a research report on Friday, May 1st. Finally, Wells Fargo & Company set a $142.00 price target on Reddit in a research note on Friday. Two analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $227.03.

Reddit Price Performance

NYSE RDDT traded down $39.06 on Friday, hitting $138.98. 9,879,146 shares of the stock were exchanged, compared to its average volume of 5,113,341. The business’s fifty day moving average is $176.74 and its 200 day moving average is $165.09. The company has a market capitalization of $26.76 billion, a PE ratio of 39.62 and a beta of 1.93. Reddit has a 52 week low of $119.27 and a 52 week high of $282.95.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping analysts’ consensus estimates of $0.95 by $0.30. The firm had revenue of $804.91 million during the quarter, compared to analysts’ expectations of $731.00 million. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The company’s revenue for the quarter was up 61.0% compared to the same quarter last year. During the same period in the previous year, the business posted $0.45 earnings per share. Analysts predict that Reddit will post 4.85 EPS for the current fiscal year.

Insider Transactions at Reddit

In other news, CAO Michelle Marie Reynolds sold 808 shares of the business’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the transaction, the chief accounting officer directly owned 15,060 shares of the company’s stock, valued at $3,012,000. The trade was a 5.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $158.52, for a total value of $6,208,752.84. Following the sale, the chief operating officer directly owned 1,088,451 shares of the company’s stock, valued at $172,541,252.52. This represents a 3.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 169,141 shares of company stock valued at $28,680,845. Corporate insiders own 28.48% of the company’s stock.

Hedge Funds Weigh In On Reddit

A number of institutional investors and hedge funds have recently made changes to their positions in RDDT. Sunbelt Securities Inc. increased its position in Reddit by 87.5% in the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock valued at $26,000 after buying an additional 91 shares in the last quarter. Ascentis Independent Advisors acquired a new position in Reddit during the 1st quarter worth approximately $30,000. LOM Asset Management Ltd bought a new position in Reddit in the fourth quarter worth approximately $33,000. EverSource Wealth Advisors LLC boosted its holdings in Reddit by 48.1% in the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after acquiring an additional 64 shares in the last quarter. Finally, Beacon Investment Advisory Services Inc. acquired a new stake in Reddit in the second quarter valued at approximately $35,000.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q2 results beat expectations. Reddit reported adjusted EPS of $1.25, versus the $0.95–$0.99 analyst consensus, while revenue rose 61% year over year to $804.9 million, well above the roughly $731 million estimate. Net income reached $253 million, supported by continued user growth and higher advertising revenue. Reddit crushes revenue and earnings estimates, issues strong guidance
• Positive Sentiment: Third-quarter guidance exceeded Wall Street forecasts. Reddit projected revenue of $860 million to $870 million, above the $829.7 million consensus estimate. Management also said AI-powered advertising tools are helping attract marketers and support commercial momentum. Reddit expects revenue above estimates as AI tools attract advertisers
• Positive Sentiment: Analyst sentiment improved. KeyCorp upgraded Reddit to “strong buy,” reflecting confidence in the company’s growth and momentum. Reddit upgraded by KeyCorp
• Neutral Sentiment: Management defended Reddit’s search value. CEO Steve Huffman said Google’s AI Overviews have not yet replaced the value of traditional search links, but the company acknowledged that search-engine referrals have become “choppy.”
• Negative Sentiment: AI-related search disruption overshadowed the earnings beat. Investors are concerned that Google’s AI search features could reduce traffic referrals to Reddit and potentially weaken user growth, engagement, and advertising monetization. Reports also suggested Reddit could reconsider a Google partnership reportedly worth about $60 million annually if search traffic continues to deteriorate. Reddit’s strong quarter fails to lift shares as AI search concerns linger

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.