JPMorgan Chase & Co. Cuts Reddit (NYSE:RDDT) Price Target to $185.00

Reddit (NYSE:RDDT) had its price target dropped by research analysts at JPMorgan Chase & Co. from $200.00 to $185.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a “neutral” rating on the stock. JPMorgan Chase & Co.‘s price objective would suggest a potential upside of 30.96% from the stock’s previous close.

RDDT has been the topic of a number of other research reports. Rothschild & Co Redburn set a $110.00 price objective on shares of Reddit in a report on Monday, April 27th. Raymond James Financial set a $180.00 target price on shares of Reddit and gave the company a “market perform” rating in a report on Friday, May 1st. Wedbush dropped their target price on shares of Reddit from $250.00 to $221.00 and set an “outperform” rating on the stock in a research report on Friday. Piper Sandler reaffirmed an “overweight” rating and set a $195.00 price objective (down from $215.00) on shares of Reddit in a report on Friday. Finally, Evercore reissued an “outperform” rating and issued a $265.00 target price on shares of Reddit in a report on Friday. Two research analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat.com, Reddit presently has a consensus rating of “Moderate Buy” and a consensus price target of $223.16.

Reddit Price Performance

Shares of RDDT traded down $36.78 during mid-day trading on Friday, reaching $141.26. The company’s stock had a trading volume of 23,941,724 shares, compared to its average volume of 5,231,720. Reddit has a 12-month low of $119.27 and a 12-month high of $282.95. The stock has a market cap of $27.19 billion, a PE ratio of 40.16 and a beta of 1.93. The company’s 50 day moving average is $176.74 and its 200 day moving average is $165.09.

Reddit (NYSE:RDDT) last issued its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, topping the consensus estimate of $0.95 by $0.30. The business had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The business’s quarterly revenue was up 61.0% on a year-over-year basis. During the same quarter last year, the company earned $0.45 EPS. As a group, sell-side analysts anticipate that Reddit will post 4.85 EPS for the current fiscal year.

Insider Buying and Selling at Reddit

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of the company’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the completion of the sale, the chief operating officer directly owned 1,088,451 shares of the company’s stock, valued at $172,541,252.52. This represents a 3.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $178.26, for a total value of $3,208,680.00. Following the sale, the chief executive officer directly owned 373,814 shares of the company’s stock, valued at $66,636,083.64. The trade was a 4.59% 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. Over the last three months, insiders have sold 169,141 shares of company stock worth $28,680,845. 28.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Ahara Advisors LLC lifted its holdings in shares of Reddit by 42.8% during the second quarter. Ahara Advisors LLC now owns 10,759 shares of the company’s stock worth $1,868,000 after purchasing an additional 3,224 shares during the period. Udine Wealth Management Inc. acquired a new position in Reddit in the 2nd quarter valued at $2,901,000. Bogart Wealth LLC raised its position in Reddit by 8,400.0% during the 2nd quarter. Bogart Wealth LLC now owns 595 shares of the company’s stock worth $103,000 after buying an additional 588 shares during the last quarter. a16z Perennial Management L.P. acquired a new stake in shares of Reddit in the 2nd quarter worth $430,000. Finally, Sidoxia Capital Management LLC acquired a new stake in shares of Reddit in the 2nd quarter worth $713,000.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported second-quarter revenue of approximately $805 million, up 61% year over year and well above the $731 million consensus estimate. Adjusted earnings of $1.25 per share also exceeded expectations of $0.95, while profit rose to $253 million. Reddit crushes revenue and earnings estimates, issues strong guidance
• Positive Sentiment: Management forecast third-quarter revenue of $860 million to $870 million, ahead of the roughly $830 million analyst consensus. Growth in advertising and AI-powered ad tools is helping attract marketers, and the company is pursuing additional products to increase engagement. Reddit expects revenue above estimates as AI tools attract advertisers
• Positive Sentiment: Reddit is testing a video-focused experience that could let users watch videos and listen to posts in the background, potentially creating new engagement and monetization opportunities. Reddit is testing a new way to watch and listen to its viral posts
• Neutral Sentiment: Analyst views remain mixed: Truist raised its price target to $275 and maintained a buy rating, while Wedbush lowered its target to $221 but retained an outperform rating. Cantor Fitzgerald cut its target to $170 and assigned a neutral rating. Reddit analyst price-target updates
• Negative Sentiment: Management warned that search referrals had become “choppy” and that traffic trends may remain volatile. Investors fear Google AI Overviews and other AI search products could reduce the traditional search links that send users to Reddit, potentially undermining long-term audience growth and advertising revenue. Reddit stock plunges on choppy search referrals warning
• Negative Sentiment: Reports also cited disappointing U.S. daily-user growth and a lack of newly announced AI licensing deals. These concerns outweighed the earnings beat, leading investors to question whether Reddit’s recent growth rate is sustainable. Reddit stock tumbles as AI deals and U.S. user metrics disappoint

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.