Reddit (NYSE:RDDT) Stock Moved Down to “Market Perform” by Oppenheimer

Oppenheimer cut shares of Reddit (NYSE:RDDT) from an outperform rating to a market perform rating in a research report released on Friday, MarketBeat reports.

RDDT has been the topic of a number of other reports. Wells Fargo & Company reduced their price target on Reddit from $187.00 to $142.00 and set an “equal weight” rating on the stock in a research report on Friday, July 31st. Roth Capital reissued a “neutral” rating and issued a $145.00 price target on shares of Reddit in a report on Monday, August 3rd. DA Davidson cut their price target on shares of Reddit from $200.00 to $185.00 and set a “buy” rating on the stock in a research note on Friday, September 18th. Zacks Research raised Reddit from a “hold” rating to a “strong-buy” rating in a research report on Tuesday. Finally, Wall Street Zen lowered Reddit from a “buy” rating to a “hold” rating in a research note on Sunday, August 9th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $197.61.

Reddit Stock Down 29.2%

Reddit stock opened at $91.74 on Friday. The business has a fifty day moving average of $150.37 and a two-hundred day moving average of $160.26. The firm has a market cap of $17.65 billion, a P/E ratio of 18.72, a P/E/G ratio of 0.60 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 announced its quarterly earnings results on Thursday, October 29th. The company reported $1.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.33 by $0.07. Reddit had a return on equity of 31.67% and a net margin of 32.10%. The business had revenue of $894.96 million for the quarter, compared to the consensus estimate of $874.91 million. During the same period last year, the business posted $0.80 EPS. The business’s revenue was up 53.0% compared to the same quarter last year. Equities analysts expect that Reddit will post 5.28 earnings per share for the current year.

Insider Buying and Selling at Reddit

In related news, COO Jennifer L. Wong sold 60,000 shares of the business’s stock in a transaction dated 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 transaction, the chief operating officer directly owned 1,012,226 shares in the company, valued at approximately $152,390,624.30. The trade was a 5.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Huffman sold 17,308 shares of the stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $158.57, for a total transaction 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 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. Over the last three months, insiders have sold 306,052 shares of company stock valued at $49,754,523. Company insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

Institutional investors and hedge funds have recently bought and sold shares of the stock. State Street Corp increased its position in shares of Reddit by 8.7% during 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. Wellington Management Group LLP lifted its position in shares of Reddit by 21.8% during the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock worth $271,572,000 after purchasing an additional 280,030 shares in the last quarter. Robeco Institutional Asset Management B.V. grew its holdings in shares of Reddit by 74.6% in the third quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock valued at $115,243,000 after purchasing an additional 345,735 shares in the last quarter. DSM Capital Partners LLC lifted 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 buying an additional 42,808 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in 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 worth $83,647,000 after buying an additional 39,540 shares in the last quarter.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported third-quarter revenue of approximately $895 million, up 53% year over year, and earnings of $1.40 per share, exceeding analyst expectations. Advertising revenue increased 54%, while improved monetization and first-week app retention—up more than 50% year over year—provided evidence of continued platform engagement. Reddit Q3 Earnings Beat on Ad Growth and Strong Monetization
• Positive Sentiment: Several analysts retained constructive views despite reducing their targets. Citigroup, Truist Financial, B. Riley and Wedbush still rated RDDT Buy or Outperform, with targets above the current trading level, suggesting potential long-term recovery if user engagement and monetization improve. Reddit Analysts Slash Their Forecasts Following Q3 Earnings
• Neutral Sentiment: Reddit plans to test a primarily logged-in experience in international markets to reduce data scraping, strengthen data protection and limit its reliance on search referrals. Management is also responding to the growing impact of Google AI search features on website traffic. Reddit Search Traffic Declines and Visitor Sign-In Plans
• Negative Sentiment: Management’s outlook was the main catalyst for the selloff. Search traffic was described as meaningfully lower, and daily active unique visitors could decline by a low double-digit percentage in the fourth quarter if Google referrals continue weakening. The logged-in-only strategy could further reduce casual and logged-out users before improving engagement or monetization.
• Negative Sentiment: Analysts broadly cut price targets, including Wells Fargo to $110, Cantor Fitzgerald to $120 and Bernstein to $120; Oppenheimer and Citizens JMP downgraded the stock to market perform. Investors are concerned that international user growth is less valuable than U.S. growth, while Meta and Google remain powerful advertising competitors.
• Negative Sentiment: Levi & Korsinsky and Block & Leviton announced investigations into whether Reddit adequately disclosed the risks associated with its logged-in-only transition and search-traffic exposure, adding legal and reputational uncertainty. Reddit Investigation Notice

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.