Reddit (NYSE:RDDT) Stock Gets Price Target Trim from The Goldman Sachs Group

Reddit (NYSE:RDDT) had its price target reduced by The Goldman Sachs Group from $215.00 to $140.00 in a research report released on Friday.

Several other research analysts have also issued reports on RDDT. Morgan Stanley cut their price target on Reddit from $240.00 to $210.00 and set an “overweight” rating on the stock in a report on Friday, August 21st. Oppenheimer downgraded Reddit from an “outperform” rating to a “market perform” rating in a report on Friday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Reddit in a research report on Wednesday, August 5th. Wells Fargo & Company cut their target price on Reddit from $142.00 to $110.00 and set an “equal weight” rating on the stock in a report on Friday. Finally, Telsey Advisory Group set a $240.00 price target on shares of Reddit in a research report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and fifteen have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $180.91.

Reddit Price Performance

Shares of Reddit stock traded down $0.85 during trading on Friday, reaching $90.88. 9,154,382 shares of the company traded hands, compared to its average volume of 5,543,015. The firm has a market capitalization of $17.49 billion, a PE ratio of 18.64, a P/E/G ratio of 0.42 and a beta of 2.05. Reddit has a 1-year low of $89.28 and a 1-year high of $263.50. The company has a 50 day moving average price of $150.37 and a 200-day moving average price of $160.26.

Reddit (NYSE:RDDT) last released 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 company had revenue of $894.96 million for the quarter, compared to analysts’ expectations of $874.91 million. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The business’s revenue was up 53.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.80 EPS. Equities research analysts expect that Reddit will post 5.28 earnings per share for the current year.

Insider Buying and Selling at Reddit

In other news, COO Jennifer L. Wong sold 75,000 shares of the stock in a transaction that occurred 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 sale, the chief operating officer directly owned 1,050,339 shares of the company’s stock, valued at $187,538,028.45. This represents a 6.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Huffman sold 18,000 shares of the firm’s stock in a transaction that occurred on 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 transaction, the chief executive officer owned 373,814 shares in the company, valued at $66,598,702.24. This represents a 4.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 306,052 shares of company stock worth $49,754,523. Insiders own 28.48% of the company’s stock.

Institutional Investors Weigh In On Reddit

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Wellington Management Group LLP boosted its holdings in shares of Reddit by 21.8% in the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock worth $271,572,000 after buying an additional 280,030 shares during the last quarter. State Street Corp grew its position in 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. Moore Capital Management LP increased its holdings in Reddit by 611.4% during the second quarter. Moore Capital Management LP now owns 12,577 shares of the company’s stock worth $2,183,000 after buying an additional 10,809 shares during the last quarter. Light Street Capital Management LLC purchased a new stake in Reddit during the second quarter worth about $31,678,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab increased its holdings in Reddit by 102.3% during the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 19,120 shares of the company’s stock worth $3,319,000 after buying an additional 9,670 shares during the last quarter.

More Reddit News

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.