Reddit (NYSE:RDDT) Downgraded to Hold Rating by Wall Street Zen

Wall Street Zen lowered shares of Reddit (NYSE:RDDT) from a buy rating to a hold rating in a research report report published on Wednesday morning.

A number of other equities research analysts have also recently issued reports on RDDT. Oppenheimer dropped their price objective on Reddit from $300.00 to $250.00 and set an “outperform” rating on the stock in a research note on Friday, February 6th. China Renaissance started coverage on Reddit in a research note on Tuesday, December 9th. They set a “buy” rating and a $300.00 price objective on the stock. Bank of America dropped their price target on Reddit from $205.00 to $175.00 and set a “neutral” rating on the stock in a research note on Thursday, April 2nd. B. Riley Financial increased their price target on Reddit from $245.00 to $250.00 and gave the company a “buy” rating in a research note on Friday, February 6th. Finally, Cantor Fitzgerald dropped their price target on Reddit from $240.00 to $170.00 and set a “neutral” rating on the stock in a research note on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $238.46.

Reddit Price Performance

NYSE:RDDT opened at $144.99 on Wednesday. Reddit has a fifty-two week low of $87.12 and a fifty-two week high of $282.95. The stock has a market capitalization of $27.70 billion, a PE ratio of 55.34, a price-to-earnings-growth ratio of 0.99 and a beta of 2.40. The business’s 50-day simple moving average is $143.44 and its 200-day simple moving average is $191.51.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, February 5th. The company reported $1.24 EPS for the quarter, topping the consensus estimate of $0.96 by $0.28. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The business had revenue of $725.61 million during the quarter, compared to analysts’ expectations of $665.80 million. During the same quarter in the prior year, the company posted $0.36 earnings per share. The firm’s revenue was up 69.7% on a year-over-year basis. On average, research analysts expect that Reddit will post 1.12 earnings per share for the current year.

Insider Buying and Selling

In other news, CTO Christopher Brian Slowe sold 9,500 shares of the stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $141.28, for a total transaction of $1,342,160.00. Following the sale, the chief technology officer directly owned 38,413 shares of the company’s stock, valued at approximately $5,426,988.64. This represents a 19.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction dated Tuesday, March 31st. The shares were sold at an average price of $132.77, for a total value of $2,389,860.00. Following the completion of the transaction, the chief executive officer owned 411,195 shares of the company’s stock, valued at $54,594,360.15. This represents a 4.19% decrease in their ownership of the stock. 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 purchased 61,000 shares of company stock valued at $8,870,815 and sold 304,235 shares valued at $50,569,685. 34.25% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Reddit

Hedge funds have recently added to or reduced their stakes in the business. Resona Asset Management Co. Ltd. grew its stake in shares of Reddit by 53.2% in the 3rd quarter. Resona Asset Management Co. Ltd. now owns 30,944 shares of the company’s stock worth $7,166,000 after buying an additional 10,743 shares during the last quarter. Vanguard Group Inc. boosted its stake in Reddit by 12.9% during the 3rd quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company’s stock valued at $2,814,734,000 after purchasing an additional 1,401,293 shares during the last quarter. Optimize Financial Inc purchased a new stake in Reddit during the 3rd quarter valued at $1,420,000. WT Asset Management Ltd purchased a new stake in Reddit during the 3rd quarter valued at $92,973,000. Finally, Wealth Enhancement Advisory Services LLC boosted its stake in Reddit by 95.4% during the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 16,139 shares of the company’s stock valued at $3,712,000 after purchasing an additional 7,881 shares during the last quarter.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Analysts and coverage note strong international traction: Reddit’s overseas expansion is driving accelerating revenue, user growth and ad gains, supporting upside to the ad business if execution continues. Can Reddit’s International Expansion Drive More Upside in the Stock?
• Positive Sentiment: CEO Steve Huffman highlighted AI-driven productivity gains for engineers (potentially 50%–10x), signaling faster product development and feature rollout that could boost engagement and monetization. Reddit CEO says AI could make engineers more productive
• Positive Sentiment: Recent sessions show the stock outperforming the broader market, reflecting investor enthusiasm around growth momentum and recent earnings beats. Reddit Outperforms Broader Market
• Neutral Sentiment: Truist maintained a Buy rating but trimmed its price target (previously higher), signaling confidence in Reddit’s growth while tempering near-term valuation upside expectations. Truist Buy on Reddit
• Neutral Sentiment: Wells Fargo initiated coverage with an Equal Weight rating and a modest price target, adding institutional attention but signaling limited near-term upside relative to peers. Wells Fargo Initiates on Reddit
• Negative Sentiment: A lawsuit questions Reddit’s ability to monetize user content and the limits of AI/data licensing deals, creating regulatory/legal risk that could pressure monetization targets and increase costs. Reddit lawsuit tests content monetization limits
• Negative Sentiment: Analysts caution that Reddit’s recent data-deal momentum and global growth are being tested against high valuation expectations; investor focus on execution and margins could keep shares volatile. Reddit data deal and valuation concerns

About Reddit

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called “subreddits,” each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.