Reddit Stock Sees Q4 Earnings Estimate Boosted at KeyCorp

Reddit Inc. (NYSE:RDDT) – KeyCorp lifted their Q4 2026 earnings per share (EPS) estimates for Reddit in a research report issued on Thursday, October 29th. KeyCorp analyst J. Patterson now expects that the company will post earnings per share of $1.75 for the quarter, up from their prior forecast of $1.74. KeyCorp currently has a “Sector Weight” rating on the stock. The consensus estimate for Reddit’s current full-year earnings is $5.28 per share. KeyCorp also issued estimates for Reddit’s FY2027 earnings at $6.39 EPS.

Several other research firms also recently issued reports on RDDT. Wall Street Zen downgraded Reddit from a “buy” rating to a “hold” rating in a research note on Sunday, August 9th. The Goldman Sachs Group lowered their price objective on Reddit from $215.00 to $140.00 in a research report on Friday. Cantor Fitzgerald dropped their target price on Reddit from $170.00 to $120.00 and set a “neutral” rating for the company in a report on Friday. Morgan Stanley reduced their target price on shares of Reddit from $240.00 to $210.00 and set an “overweight” rating for the company in a research report on Friday, August 21st. Finally, BNP Paribas Exane decreased their price target on shares of Reddit from $180.00 to $110.00 in a research note on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and fifteen have issued a Hold rating to the stock. Based on data from MarketBeat, Reddit presently has an average rating of “Moderate Buy” and a consensus target price of $180.91.

Reddit Trading Down 0.7%

Shares of NYSE RDDT opened at $91.05 on Tuesday. The firm has a market cap of $17.52 billion, a P/E ratio of 18.58, a price-to-earnings-growth ratio of 0.62 and a beta of 2.05. Reddit has a 1-year low of $89.28 and a 1-year high of $263.50. The business’s 50 day moving average is $149.13 and its 200-day moving average is $159.42.

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 the consensus estimate of $1.33 by $0.07. The business 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 29.02% and a net margin of 31.35%. The company’s quarterly revenue was up 53.0% on a year-over-year basis. During the same quarter last year, the firm posted $0.80 EPS.

Hedge Funds Weigh In On Reddit

A number of institutional investors have recently modified their holdings of RDDT. State Street Corp lifted its holdings in shares of Reddit by 8.7% in the second quarter. State Street Corp now owns 2,979,587 shares of the company’s stock worth $517,197,000 after acquiring an additional 237,523 shares during the last quarter. Wellington Management Group LLP lifted its stake in Reddit by 21.8% in the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock valued at $271,572,000 after purchasing an additional 280,030 shares during the last quarter. Robeco Institutional Asset Management B.V. boosted its position 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 valued at $115,243,000 after buying an additional 345,735 shares in the last quarter. DSM Capital Partners LLC boosted its position in Reddit by 5.3% in the first quarter. DSM Capital Partners LLC now owns 848,206 shares of the company’s stock valued at $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 boosted its position in 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 valued at $83,647,000 after buying an additional 39,540 shares in the last quarter.

Insider Activity at Reddit

In other Reddit news, CEO Steve Huffman sold 18,000 shares of the company’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $178.16, for a total transaction of $3,206,880.00. Following the completion of the sale, the chief executive officer directly owned 373,814 shares in the company, valued at $66,598,702.24. This represents a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert A. Sauerberg sold 5,128 shares of the company’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the sale, the director owned 27,087 shares of the company’s stock, valued at $4,331,753.04. The trade was a 15.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 288,052 shares of company stock valued at $46,878,483 over the last three months. 28.48% of the stock is owned by insiders.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s underlying financial results remain strong: quarterly revenue increased 53% year over year to approximately $895 million, while earnings exceeded analyst expectations. A separate analysis also highlighted improving average revenue per user, suggesting that advertiser monetization and engagement remain healthy. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Although analysts broadly reduced their targets, many remain above the recent share price. Deutsche Bank maintained a “buy” rating with a $165 target, while Jefferies, Goldman Sachs, Piper Sandler and JPMorgan assigned targets ranging from $140 to $155, $145 and $150, respectively. This indicates that the selloff may have created potential value if Reddit stabilizes traffic and user growth. Deutsche Bank Reddit Rating
• Neutral Sentiment: Analyst valuation comparisons continue to debate whether RDDT offers better value than other internet-platform stocks, including Spotify. The discussion reinforces that Reddit’s valuation depends heavily on its ability to convert engagement into sustainable advertising growth. RDDT vs. SPOT
• Negative Sentiment: The dominant catalyst is concern that Google’s AI search changes are reducing traffic to Reddit, particularly in the United States. Investors are also worried that Reddit’s logged-in-only strategy could limit user acquisition and raise the cost of attracting new users. Reddit Stock Sinks as Q3 Results Clash With User Outlook
• Negative Sentiment: A wave of target reductions and downgrades—including moves to “neutral,” “hold,” “in-line” and “market perform”—has weakened investor confidence, even though revised targets remain above the recent price. Reddit Fair Value Moves Lower
• Negative Sentiment: Kirby McInerney LLP announced an investigation into potential securities-law or business-practice violations involving Reddit and its management. The announcement is preliminary and does not establish wrongdoing, but it adds legal and reputational risk. Reddit Investigation Announcement

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.