Jefferies Financial Group Has Lowered Expectations for Reddit (NYSE:RDDT) Stock Price

Reddit (NYSE:RDDT) had its price target reduced by analysts at Jefferies Financial Group from $200.00 to $155.00 in a note issued to investors on Friday. Jefferies Financial Group‘s target price would indicate a potential upside of 69.22% from the stock’s current price.

Other analysts have also recently issued research reports about the stock. Raymond James Financial reiterated a “strong-buy” rating and set a $205.00 target price on shares of Reddit in a research report on Monday, August 17th. Bank of America reaffirmed a “neutral” rating and set a $135.00 price objective (down from $190.00) on shares of Reddit in a research note on Friday. Wells Fargo & Company dropped their price objective on Reddit from $142.00 to $110.00 and set an “equal weight” rating for the company in a report on Friday. UBS Group reissued a “buy” rating on shares of Reddit in a research note on Friday. Finally, Deutsche Bank Aktiengesellschaft reduced their target price on Reddit from $200.00 to $165.00 and set a “buy” rating on the stock in a report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and fifteen have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Reddit presently has an average rating of “Moderate Buy” and a consensus target price of $180.91.

Reddit Trading Down 0.1%

NYSE RDDT traded down $0.13 during trading hours on Friday, reaching $91.60. 8,786,213 shares of the company’s stock were exchanged, compared to its average volume of 5,539,729. The stock has a market cap of $17.62 billion, a PE ratio of 18.65, a price-to-earnings-growth ratio of 0.42 and a beta of 2.05. Reddit has a one year low of $89.28 and a one year high of $263.50. The firm has a fifty day moving average of $150.37 and a 200-day moving average of $160.26.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.07. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The firm had revenue of $894.96 million during the quarter, compared to analysts’ expectations of $874.91 million. During the same quarter last year, the company posted $0.80 EPS. The company’s quarterly revenue was up 53.0% compared to the same quarter last year. As a group, research analysts forecast that Reddit will post 5.28 EPS for the current year.

Insiders Place Their Bets

In other Reddit news, Director Robert Sauerberg sold 5,128 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total transaction of $820,069.76. Following the completion of the transaction, the director owned 27,087 shares in the company, valued at approximately $4,331,753.04. This represents a 15.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Steve Huffman sold 18,000 shares of Reddit stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $178.16, for a total value 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 306,052 shares of company stock worth $49,754,523. Corporate insiders own 28.48% of the company’s stock.

Institutional Investors Weigh In On Reddit

Institutional investors have recently bought and sold shares of the company. Commonwealth Equity Services LLC raised its holdings in shares of Reddit by 7.5% in the third quarter. Commonwealth Equity Services LLC now owns 38,368 shares of the company’s stock valued at $5,465,000 after purchasing an additional 2,682 shares during the last quarter. TFB Advisors LLC lifted its position in shares of Reddit by 102.7% in the third quarter. TFB Advisors LLC now owns 2,789 shares of the company’s stock worth $397,000 after purchasing an additional 1,413 shares in the last quarter. Chicago Partners Investment Group LLC bought a new stake in shares of Reddit in the third quarter worth $362,000. Rakuten Investment Management Inc. acquired a new position in Reddit during the third quarter worth $3,611,000. Finally, Provenance Wealth Advisors LLC acquired a new position in Reddit during the third quarter worth $775,000.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s latest quarterly results showed substantial operating momentum: revenue rose 53% year over year to approximately $895 million, while earnings per share exceeded analyst expectations. Advertising engagement and higher average revenue per user could support the company’s long-term monetization outlook. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Some investors view the decline as excessive relative to Reddit’s revenue growth and profitability, arguing that fears over Google’s AI search changes may already be reflected in the valuation. Reddit Stock Crashes Again: Is the Stock a Buy on the Dip or a Value Trap?
• Neutral Sentiment: A valuation comparison with Spotify highlights Reddit as a potential value opportunity, but the conclusion depends on whether investors prioritize Reddit’s faster growth or Spotify’s more established user and revenue trends. RDDT vs. SPOT: Which Stock Is the Better Value Option?
• Negative Sentiment: The primary pressure is a worsening user-growth outlook. Google’s AI search changes appear to be reducing traffic to Reddit, particularly in the U.S., while management’s push toward logged-in users could protect monetization but make it harder and more expensive to attract new users. Reddit Stock Plunges After Google AI Cuts U.S. Traffic
• Negative Sentiment: Several firms reduced their ratings or price targets, including JPMorgan, Evercore, Loop Capital, Oppenheimer, Citigroup, Cantor Fitzgerald, Truist, Wells Fargo and Wedbush. Although many revised targets remain above the current market level, the broad analyst caution is weighing on confidence in RDDT’s near-term outlook.

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.