Reddit (NYSE:RDDT) Stock Price Target Cut by Truist Financial

Reddit (NYSE:RDDT) had its target price cut by research analysts at Truist Financial from $275.00 to $210.00 in a report released on Friday, Benzinga reports. The firm presently has a “buy” rating on the stock. Truist Financial‘s target price suggests a potential upside of 131.14% from the company’s previous close.

RDDT has been the subject of several other reports. Piper Sandler reissued an “overweight” rating and issued a $195.00 price target (down from $215.00) on shares of Reddit in a research report on Friday, July 31st. JPMorgan Chase & Co. dropped their price objective on Reddit from $200.00 to $185.00 and set a “neutral” rating on the stock in a research report on Friday, July 31st. Needham & Company LLC cut their target price on Reddit from $300.00 to $150.00 and set a “buy” rating on the stock in a research note on Friday. Cantor Fitzgerald reduced their target price on shares of Reddit from $170.00 to $120.00 and set a “neutral” rating for the company in a report on Friday. Finally, Telsey Advisory Group set a $240.00 target price on shares of Reddit in a report on Friday, July 31st. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and thirteen have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $205.42.

Reddit Stock Performance

RDDT traded down $38.75 during trading on Friday, hitting $90.85. 21,132,767 shares of the stock were exchanged, compared to its average volume of 5,462,794. The firm has a 50 day simple moving average of $151.54 and a 200 day simple moving average of $161.02. The firm has a market cap of $17.48 billion, a price-to-earnings ratio of 21.04, a P/E/G ratio of 0.62 and a beta of 2.05. Reddit has a 1 year low of $91.05 and a 1 year high of $263.50.

Reddit (NYSE:RDDT) last issued its earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, topping the consensus estimate of $1.33 by $0.07. The business had revenue of $894.96 million during the quarter, compared to analysts’ expectations of $874.91 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%. The business’s revenue for the quarter was up 53.0% compared to the same quarter last year. During the same period in the prior year, the business earned $0.80 EPS. As a group, equities analysts anticipate that Reddit will post 5.28 earnings per share for the current fiscal year.

Insider Activity at Reddit

In other Reddit news, Director Robert Sauerberg sold 5,128 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the completion of the sale, the director directly owned 27,087 shares in the company, valued at approximately $4,331,753.04. This trade represents a 15.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Jennifer Wong sold 75,000 shares of the firm’s stock in a transaction dated 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 approximately $187,538,028.45. This represents a 6.66% 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. Insiders have sold 306,052 shares of company stock valued at $49,754,523 in the last ninety days. Corporate insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

A number of institutional investors have recently bought and sold shares of RDDT. Sunbelt Securities Inc. increased its stake in Reddit by 87.5% during the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock valued at $26,000 after purchasing an additional 91 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Reddit by 48.1% during the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after buying an additional 64 shares during the period. Beacon Investment Advisory Services Inc. acquired a new stake in shares of Reddit during the second quarter worth $35,000. Ascentis Independent Advisors acquired a new stake in shares of Reddit during the first quarter worth $30,000. Finally, Hager Investment Management Services LLC grew its holdings in shares of Reddit by 522.2% during the second quarter. Hager Investment Management Services LLC now owns 280 shares of the company’s stock valued at $49,000 after buying an additional 235 shares during the last quarter.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported third-quarter adjusted earnings of $1.40 per share, exceeding the roughly $1.33 analyst consensus, while revenue of approximately $895 million surpassed expectations and increased 53% year over year. Reddit third-quarter earnings report
• Positive Sentiment: B. Riley maintained a “buy” rating despite reducing its price target from $270 to $190, indicating that some analysts still see substantial long-term upside. B. Riley Reddit rating
• Neutral Sentiment: Analyst sentiment became more mixed: Cantor Fitzgerald cut its target to $120 and moved to “neutral,” while Oppenheimer and Citizens JMP downgraded Reddit to “market perform.” Bernstein also lowered its target to $120 from $180. Analyst reactions to Reddit earnings
• Negative Sentiment: Management warned that daily active unique visitors could decline by a low-double-digit percentage in the fourth quarter from about 130 million if Google referral traffic continues to weaken. Investors viewed the user outlook and revenue guidance as below expectations. Reddit user-growth concerns
• Negative Sentiment: AI-powered search is reducing traffic from Google and other search channels, raising concerns about Reddit’s ability to attract and monetize new users. The company plans to test requiring visitors to log in, which could further reduce open-web traffic even as it limits scraping. Reddit search traffic and login changes
• Negative Sentiment: The market-wide technology selloff linked to fears that AI is disrupting established internet traffic models added pressure to RDDT, contributing to a move toward its one-year low. Nasdaq and AI fears

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.