Reddit (NYSE:RDDT) Stock Gets Price Target Cut from B. Riley Financial

Reddit (NYSE:RDDT) had its price target decreased by B. Riley Financial from $270.00 to $190.00 in a research report released on Friday morning,Benzinga reports. B. Riley Financial currently has a buy rating on the stock.

Other research analysts also recently issued research reports about the stock. Needham & Company LLC dropped their target price on shares of Reddit from $300.00 to $150.00 and set a “buy” rating on the stock in a research note on Friday. Telsey Advisory Group set a $240.00 price target on shares of Reddit in a report on Friday, July 31st. Piper Sandler reissued an “overweight” rating and issued a $195.00 price objective (down from $215.00) on shares of Reddit in a research note on Friday, July 31st. BNP Paribas Exane started coverage on Reddit in a report on Friday, September 18th. They set a “neutral” rating and a $180.00 target price for the company. Finally, DA Davidson decreased their price target on shares of Reddit from $200.00 to $185.00 and set a “buy” rating for the company in a research note on Friday, September 18th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $197.61.

Reddit Stock Performance

Shares of RDDT opened at $91.74 on Friday. The business’s fifty day moving average is $150.37 and its 200-day moving average is $160.26. The firm has a market cap of $17.65 billion, a price-to-earnings ratio of 18.72, a PEG ratio of 0.42 and a beta of 2.05. Reddit has a 52-week low of $89.28 and a 52-week high of $263.50.

Reddit (NYSE:RDDT) last announced its quarterly earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.07. The business 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 firm’s revenue for the quarter was up 53.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.80 EPS. As a group, research analysts forecast that Reddit will post 5.28 EPS for the current fiscal year.

Insider Transactions at Reddit

In related news, Director Robert Sauerberg sold 5,128 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the transaction, the director owned 27,087 shares in the company, valued at approximately $4,331,753.04. This represents a 15.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Steve Huffman sold 17,308 shares of Reddit stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $158.57, for a total transaction of $2,744,529.56. Following the completion of the transaction, the chief executive officer owned 336,432 shares in the company, valued at $53,348,022.24. This trade represents a 4.89% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 306,052 shares of company stock valued at $49,754,523 over the last three months. 28.48% of the stock is owned by corporate insiders.

Institutional Trading of Reddit

Institutional investors and hedge funds have recently bought and sold shares of the stock. Wellington Management Group LLP grew its holdings in Reddit by 21.8% in the 2nd 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 in the last quarter. State Street Corp grew its holdings in Reddit by 8.7% in the second quarter. State Street Corp now owns 2,979,587 shares of the company’s stock worth $517,197,000 after purchasing an additional 237,523 shares during the period. Moore Capital Management LP lifted its holdings in shares of 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 purchasing an additional 10,809 shares in the last quarter. Light Street Capital Management LLC bought a new stake in Reddit during the second quarter worth $31,678,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab increased its position in shares of Reddit by 102.3% during the second 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 during the last quarter.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported third-quarter revenue of approximately $895 million, up 53% year over year, and earnings of $1.40 per share, exceeding analyst expectations. Advertising revenue increased 54%, while improved monetization and first-week app retention—up more than 50% year over year—provided evidence of continued platform engagement. Reddit Q3 Earnings Beat on Ad Growth and Strong Monetization
• Positive Sentiment: Several analysts retained constructive views despite reducing their targets. Citigroup, Truist Financial, B. Riley and Wedbush still rated RDDT Buy or Outperform, with targets above the current trading level, suggesting potential long-term recovery if user engagement and monetization improve. Reddit Analysts Slash Their Forecasts Following Q3 Earnings
• Neutral Sentiment: Reddit plans to test a primarily logged-in experience in international markets to reduce data scraping, strengthen data protection and limit its reliance on search referrals. Management is also responding to the growing impact of Google AI search features on website traffic. Reddit Search Traffic Declines and Visitor Sign-In Plans
• Negative Sentiment: Management’s outlook was the main catalyst for the selloff. Search traffic was described as meaningfully lower, and daily active unique visitors could decline by a low double-digit percentage in the fourth quarter if Google referrals continue weakening. The logged-in-only strategy could further reduce casual and logged-out users before improving engagement or monetization.
• Negative Sentiment: Analysts broadly cut price targets, including Wells Fargo to $110, Cantor Fitzgerald to $120 and Bernstein to $120; Oppenheimer and Citizens JMP downgraded the stock to market perform. Investors are concerned that international user growth is less valuable than U.S. growth, while Meta and Google remain powerful advertising competitors.
• Negative Sentiment: Levi & Korsinsky and Block & Leviton announced investigations into whether Reddit adequately disclosed the risks associated with its logged-in-only transition and search-traffic exposure, adding legal and reputational uncertainty. Reddit Investigation Notice

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.