Reddit (NYSE:RDDT) Stock Price Target Lowered at Wedbush

Reddit (NYSE:RDDT) had its price objective decreased by Wedbush from $221.00 to $150.00 in a research report issued on Friday, Benzinga reports. The brokerage presently has an “outperform” rating on the stock. Wedbush‘s target price points to a potential upside of 66.62% from the stock’s previous close.

Several other brokerages have also issued reports on RDDT. B. Riley Financial cut their price target on Reddit from $270.00 to $190.00 and set a “buy” rating on the stock in a report on Friday. Evercore reaffirmed an “outperform” rating on shares of Reddit in a research report on Monday. Telsey Advisory Group set a $240.00 price target on shares of Reddit in a research report on Friday, July 31st. Wells Fargo & Company dropped their price objective on shares of Reddit from $187.00 to $142.00 and set an “equal weight” rating on the stock in a research note on Friday, July 31st. Finally, Bank of America reissued a “neutral” rating on shares of Reddit in a research report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and thirteen have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $201.19.

Reddit Stock Down 30.5%

NYSE RDDT traded down $39.58 on Friday, hitting $90.03. The company’s stock had a trading volume of 23,936,529 shares, compared to its average volume of 5,473,847. Reddit has a 1-year low of $89.79 and a 1-year high of $263.50. The firm has a market cap of $17.32 billion, a PE ratio of 20.98, a PEG ratio of 0.62 and a beta of 2.05. The company’s 50-day moving average is $151.54 and its 200 day moving average is $161.02.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, October 29th. The company reported $1.40 EPS for the quarter, beating the consensus estimate of $1.33 by $0.07. Reddit had a return on equity of 29.02% and a net margin of 31.35%. The business had revenue of $894.96 million for the quarter, compared to analysts’ expectations of $874.91 million. During the same period in the prior year, the business posted $0.80 earnings per share. The firm’s revenue was up 53.0% on a year-over-year basis. On average, equities analysts expect that Reddit will post 5.28 EPS for the current year.

Insider Buying and Selling

In other Reddit news, Director Robert Sauerberg sold 5,128 shares of the business’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total transaction 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 position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Jennifer Wong sold 75,000 shares of the firm’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $178.55, for a total value of $13,391,250.00. Following the completion of the transaction, the chief operating officer directly 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 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 306,052 shares of company stock valued at $49,754,523. Company insiders own 28.48% of the company’s stock.

Institutional Investors Weigh In On Reddit

Hedge funds and other institutional investors have recently modified their holdings of the stock. Sunbelt Securities Inc. increased its position in Reddit by 87.5% during 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 bought a new stake in Reddit in the first quarter worth $30,000. EverSource Wealth Advisors LLC grew its stake in shares of 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 during the last quarter. Beacon Investment Advisory Services Inc. purchased a new stake in shares of Reddit in the second quarter worth $35,000. Finally, Root Financial Partners LLC bought a new position in shares of Reddit during the third quarter valued at $41,000.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit exceeded third-quarter expectations, reporting adjusted EPS of $1.40 versus the $1.33 consensus and revenue of approximately $895 million versus $875 million expected. Revenue increased 53% year over year, while net income also grew substantially. Reddit Reports Third Quarter 2026 Results
• Positive Sentiment: Truist Financial and B. Riley maintained “buy” ratings despite lowering their price targets to $210 and $190, respectively, suggesting they still see significant long-term upside if Reddit can stabilize traffic and user growth. Reddit Analysts Slash Their Forecasts Following Q3 Earnings
• Neutral Sentiment: Reddit plans to test a primarily logged-in experience to reduce scraping and potentially improve engagement and monetization. However, requiring an account to view content could further reduce casual and search-driven visitors before the benefits materialize. Reddit Search Traffic and Visitor Sign-ins
• Negative Sentiment: Management issued weaker-than-expected fourth-quarter guidance and warned that daily active unique visitors could fall by a low-double-digit percentage from roughly 130 million. Declining Google referrals, increasingly driven by AI-generated search answers, are reducing Reddit’s audience funnel.
• Negative Sentiment: The audience mix is also becoming less attractive: U.S. daily users declined while international users increased, and U.S. users generate substantially more advertising revenue than international users. Reddit Earns More From Fewer U.S. Users
• Negative Sentiment: Several analysts became more cautious: Oppenheimer and Citizens JMP downgraded Reddit to “market perform,” while Bernstein lowered its target to $120 and Cantor Fitzgerald cut its target to $120 with a neutral rating. The broader technology selloff and concerns about AI’s impact on internet traffic added further pressure. Reddit Stock Guidance and DAU Decline

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.