Reddit (NYSE:RDDT) Price Target Cut to $155.00 by Analysts at Jefferies Financial Group

Reddit (NYSE:RDDT) had its price target reduced by Jefferies Financial Group from $200.00 to $155.00 in a research report sent to investors on Friday.

RDDT has been the subject of a number of other reports. Guggenheim cut their price objective on Reddit from $255.00 to $170.00 and set a “buy” rating for the company in a research report on Friday. Cantor Fitzgerald lowered their target price on shares of Reddit from $170.00 to $120.00 and set a “neutral” rating for the company in a research note on Friday. Evercore cut shares of Reddit from an “outperform” rating to an “in-line” rating and set a $120.00 price target for the company. in a research report on Monday. Telsey Advisory Group set a $240.00 price target on shares of Reddit in a research note on Friday, July 31st. Finally, Wall Street Zen lowered shares of Reddit from a “buy” rating to a “hold” rating in a report on Sunday, August 9th. 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.com, Reddit currently has a consensus rating of “Moderate Buy” and an average target price of $180.91.

Reddit Stock Down 0.3%

NYSE:RDDT traded down $0.30 on Friday, hitting $91.43. The stock had a trading volume of 8,923,154 shares, compared to its average volume of 5,541,294. The stock has a market cap of $17.59 billion, a price-to-earnings ratio of 18.70, a PEG ratio of 0.42 and a beta of 2.05. The company has a fifty day moving average price of $150.37 and a two-hundred day moving average price of $160.26. Reddit has a 1-year low of $89.28 and a 1-year 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 (EPS) for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. The business had revenue of $894.96 million during the quarter, compared to the consensus estimate of $874.91 million. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The business’s revenue 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, analysts anticipate that Reddit will post 5.28 earnings per share for the current year.

Insider Transactions at Reddit

In other news, COO Jennifer Wong sold 60,000 shares of the stock in a transaction on Wednesday, October 14th. The stock was sold at an average price of $150.55, for a total value of $9,033,000.00. Following the sale, the chief operating officer directly owned 1,012,226 shares in the company, valued at approximately $152,390,624.30. This trade represents a 5.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of Reddit stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total value of $820,069.76. Following the completion of the transaction, the director owned 27,087 shares of the company’s stock, valued at approximately $4,331,753.04. This trade represents a 15.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 306,052 shares of company stock valued at $49,754,523. 28.48% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Reddit

A number of institutional investors and hedge funds have recently made changes to their positions in RDDT. State Street Corp increased its stake 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 worth $517,197,000 after buying an additional 237,523 shares during the period. Wellington Management Group LLP lifted its stake in Reddit by 21.8% in the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock worth $271,572,000 after acquiring an additional 280,030 shares during the last quarter. Robeco Institutional Asset Management B.V. grew its holdings in Reddit by 74.6% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock worth $115,243,000 after acquiring an additional 345,735 shares in the last quarter. DSM Capital Partners LLC grew its holdings in Reddit by 5.3% during the 1st quarter. DSM Capital Partners LLC now owns 848,206 shares of the company’s stock worth $114,211,000 after acquiring an additional 42,808 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of Reddit by 8.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 481,893 shares of the company’s stock valued at $83,647,000 after purchasing an additional 39,540 shares during the last quarter.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s latest quarterly results showed substantial operating momentum: revenue rose 53% year over year to approximately $895 million, while earnings per share exceeded analyst expectations. Advertising engagement and higher average revenue per user could support the company’s long-term monetization outlook. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Some investors view the decline as excessive relative to Reddit’s revenue growth and profitability, arguing that fears over Google’s AI search changes may already be reflected in the valuation. Reddit Stock Crashes Again: Is the Stock a Buy on the Dip or a Value Trap?
• Neutral Sentiment: A valuation comparison with Spotify highlights Reddit as a potential value opportunity, but the conclusion depends on whether investors prioritize Reddit’s faster growth or Spotify’s more established user and revenue trends. RDDT vs. SPOT: Which Stock Is the Better Value Option?
• Negative Sentiment: The primary pressure is a worsening user-growth outlook. Google’s AI search changes appear to be reducing traffic to Reddit, particularly in the U.S., while management’s push toward logged-in users could protect monetization but make it harder and more expensive to attract new users. Reddit Stock Plunges After Google AI Cuts U.S. Traffic
• Negative Sentiment: Several firms reduced their ratings or price targets, including JPMorgan, Evercore, Loop Capital, Oppenheimer, Citigroup, Cantor Fitzgerald, Truist, Wells Fargo and Wedbush. Although many revised targets remain above the current market level, the broad analyst caution is weighing on confidence in RDDT’s near-term outlook.

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.