Reddit (NYSE:RDDT) Stock Gets Price Target Cut from Wedbush

Reddit (NYSE:RDDT) had its price target lowered by Wedbush from $221.00 to $150.00 in a report published on Friday,Benzinga reports. The firm currently has an outperform rating on the stock.

Other analysts have also recently issued reports about the stock. Jefferies Financial Group set a $250.00 price objective on shares of Reddit in a research note on Friday, July 10th. Cantor Fitzgerald reduced their target price on shares of Reddit from $170.00 to $120.00 and set a “neutral” rating for the company in a research note on Friday. Roth Capital restated a “neutral” rating and set a $145.00 target price on shares of Reddit in a research report on Monday, August 3rd. Wall Street Zen downgraded Reddit from a “buy” rating to a “hold” rating in a research report on Sunday, August 9th. Finally, DA Davidson dropped their price objective on Reddit from $200.00 to $185.00 and set a “buy” rating for the company in a report on Friday, September 18th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $197.61.

Reddit Stock Up 0.0%

Shares of NYSE RDDT opened at $91.74 on Friday. The company’s 50-day simple moving average is $150.37 and its 200-day simple moving average is $160.26. The firm has a market cap of $17.65 billion, a price-to-earnings ratio of 18.72, a price-to-earnings-growth ratio of 0.42 and a beta of 2.05. Reddit has a 52-week low of $89.28 and a 52-week 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 (EPS) for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. The firm had revenue of $894.96 million during the quarter, compared to the consensus estimate of $874.91 million. Reddit had a return on equity of 30.57% and a net margin of 32.10%. The company’s quarterly revenue was up 53.0% on a year-over-year basis. During the same period last year, the company earned $0.80 EPS. Equities research analysts anticipate that Reddit will post 5.28 EPS for the current fiscal year.

Insider Activity

In related news, Director Robert Sauerberg sold 5,128 shares of the firm’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total value of $820,069.76. Following the completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed 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. The trade was a 6.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 306,052 shares of company stock worth $49,754,523 over the last ninety days. Corporate insiders own 28.48% of the company’s stock.

Institutional Investors Weigh In On Reddit

Institutional investors have recently added to or reduced their stakes in the business. State Street Corp lifted its stake 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 buying an additional 237,523 shares during the period. Wellington Management Group LLP boosted its stake 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 acquiring an additional 280,030 shares in the last quarter. DSM Capital Partners LLC lifted its position in shares of Reddit by 5.3% in the first quarter. DSM Capital Partners LLC now owns 848,206 shares of the company’s stock worth $114,211,000 after purchasing an additional 42,808 shares in the last quarter. Robeco Institutional Asset Management B.V. boosted its holdings in Reddit by 74.6% in the third quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock worth $115,243,000 after purchasing an additional 345,735 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Reddit by 8.9% in the second 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 acquiring an additional 39,540 shares during the last quarter.

Key Headlines Impacting Reddit

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

Reddit Company Profile

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.