Reddit (NYSE:RDDT) Cut to “Hold” at Evercore

Evercore cut shares of Reddit (NYSE:RDDT) from an outperform rating to a hold rating in a research report report published on Monday, MarketBeat Ratings reports. They currently have $120.00 price target on the stock.

RDDT has been the topic of a number of other reports. BNP Paribas Exane initiated coverage on Reddit in a research note on Friday, September 18th. They issued a “neutral” rating and a $180.00 price target on the stock. JPMorgan Chase & Co. dropped their price objective on Reddit from $200.00 to $185.00 and set a “neutral” rating for the company in a research note on Friday, July 31st. Telsey Advisory Group set a $240.00 target price on shares of Reddit in a report on Friday, July 31st. Wells Fargo & Company cut their target price on shares of Reddit from $142.00 to $110.00 and set an “equal weight” rating on the stock in a report on Friday, October 30th. Finally, Morgan Stanley decreased their target price on shares of Reddit from $240.00 to $210.00 and set an “overweight” rating on the stock in a research note on Friday, August 21st. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and fifteen have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $180.91.

Reddit Stock Performance

RDDT stock opened at $101.83 on Monday. The company has a market capitalization of $19.59 billion, a PE ratio of 20.78, a price-to-earnings-growth ratio of 0.39 and a beta of 2.28. The company’s 50 day moving average price is $146.78 and its two-hundred day moving average price is $158.00. Reddit has a one year low of $89.28 and a one year high of $263.50.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, October 29th. The company reported $1.40 EPS for the quarter, topping the consensus estimate of $1.33 by $0.07. The firm had revenue of $894.96 million for 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 quarter in the previous year, the business earned $0.80 earnings per share. On average, research analysts predict that Reddit will post 5.42 EPS for the current year.

Insider Buying and Selling

In related news, COO Jennifer L. Wong sold 60,000 shares of Reddit stock in a transaction on Wednesday, October 14th. The shares were sold at an average price of $150.55, for a total value of $9,033,000.00. Following the sale, the chief operating officer owned 1,012,226 shares in the company, valued at $152,390,624.30. The trade was a 5.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert A. Sauerberg sold 5,128 shares of the business’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total transaction of $820,069.76. Following the transaction, the director owned 27,087 shares in the company, valued at $4,331,753.04. This represents a 15.92% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 288,052 shares of company stock valued at $46,878,483 over the last quarter. 28.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Wellington Management Group LLP grew its holdings in shares of Reddit by 21.8% during the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock valued at $271,572,000 after buying an additional 280,030 shares during the last quarter. State Street Corp increased its position 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 acquiring an additional 237,523 shares in the last quarter. Moore Capital Management LP raised its holdings in Reddit by 611.4% in the 2nd quarter. Moore Capital Management LP now owns 12,577 shares of the company’s stock worth $2,183,000 after acquiring an additional 10,809 shares during the last quarter. Light Street Capital Management LLC purchased a new position in Reddit in the 2nd quarter worth approximately $31,678,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab lifted its position in Reddit by 102.3% in the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 19,120 shares of the company’s stock valued at $3,319,000 after acquiring an additional 9,670 shares in the last quarter.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s latest reported quarter showed revenue up 53% year over year, with both revenue and earnings per share above consensus. Strong ad growth and user engagement support the longer-term case. Zacks article
• Positive Sentiment: The company is testing ads in search results, creating another potential way to monetize existing users as it adapts to changes in how people find Reddit content. TechCrunch article
• Neutral Sentiment: KeyCorp raised its 2026 EPS estimate to $5.41 from $4.90, but cut its 2027 estimate to $6.39 from $6.92 and its 2028 estimate to $7.06 from $8.73. Its Sector Weight rating signals a mixed outlook. MarketBeat analyst estimates
• Neutral Sentiment: Reddit and a rights group are challenging Australia’s under-16 social-media ban in court. The case raises potential regulatory and access questions, but its business impact is uncertain. Sky News article
• Negative Sentiment: Investors remain concerned about falling search traffic and weaker-than-expected revenue guidance, which prompted a steep post-quarter selloff and renewed questions about growth. Yahoo Finance article
• Negative Sentiment: Loop Capital and Evercore lowered their ratings, adding to pressure on sentiment amid concerns about growth and valuation. Loop Capital rating article Evercore rating article

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.