Reddit (NYSE:RDDT) Stock Price Target Lowered at Piper Sandler

Reddit (NYSE:RDDT) had its price target reduced by equities researchers at Piper Sandler from $195.00 to $145.00 in a note issued to investors on Friday. Piper Sandler‘s price objective would suggest a potential upside of 58.30% from the stock’s previous close.

Other equities research analysts also recently issued research reports about the stock. B. Riley Financial cut their price objective on shares of Reddit from $270.00 to $190.00 and set a “buy” rating for the company in a research report on Friday. Morgan Stanley lowered their target price on Reddit from $240.00 to $210.00 and set an “overweight” rating on the stock in a research report on Friday, August 21st. Deutsche Bank Aktiengesellschaft cut their price target on Reddit from $200.00 to $165.00 and set a “buy” rating for the company in a report on Friday. JPMorgan Chase & Co. reduced their price target on Reddit from $185.00 to $150.00 and set a “neutral” rating for the company in a research report on Friday. Finally, Jefferies Financial Group set a $250.00 price target on Reddit in a research report on Friday, July 10th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and fifteen have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $180.91.

Reddit Price Performance

Shares of RDDT traded down $0.13 on Friday, reaching $91.60. The company’s stock had a trading volume of 8,786,213 shares, compared to its average volume of 5,539,729. The stock’s 50 day simple moving average is $150.37 and its two-hundred day simple moving average is $160.26. The stock has a market capitalization of $17.62 billion, a P/E ratio of 18.65, a PEG ratio of 0.42 and a beta of 2.05. Reddit has a 12-month low of $89.28 and a 12-month high of $263.50.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, October 29th. The company reported $1.40 EPS for the quarter, beating analysts’ consensus estimates of $1.33 by $0.07. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The business had revenue of $894.96 million during the quarter, compared to analysts’ expectations of $874.91 million. During the same period in the prior year, the company earned $0.80 earnings per share. The firm’s revenue was up 53.0% on a year-over-year basis. Analysts expect that Reddit will post 5.28 earnings per share for the current year.

Insider Transactions at Reddit

In other news, Director Robert Sauerberg sold 5,128 shares of the 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 sale, the director directly owned 27,087 shares of the company’s stock, valued at $4,331,753.04. This represents a 15.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Steve Huffman sold 17,308 shares of the firm’s stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $158.57, for a total transaction of $2,744,529.56. Following the sale, the chief executive officer owned 336,432 shares in the company, valued at $53,348,022.24. The trade was a 4.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 306,052 shares of company stock valued at $49,754,523 over the last three months. Corporate insiders own 28.48% of the company’s stock.

Institutional Investors Weigh In On Reddit

A number of institutional investors and hedge funds have recently bought and sold shares of RDDT. State Street Corp lifted its position in shares of Reddit by 8.7% in the second quarter. State Street Corp now owns 2,979,587 shares of the company’s stock valued at $517,197,000 after acquiring an additional 237,523 shares in the last quarter. Wellington Management Group LLP grew its position in shares of Reddit by 21.8% during the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock worth $271,572,000 after purchasing an additional 280,030 shares in the last quarter. Robeco Institutional Asset Management B.V. grew its position in shares of Reddit by 74.6% during the third quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock worth $115,243,000 after purchasing an additional 345,735 shares in the last quarter. DSM Capital Partners LLC grew its position in shares of Reddit by 5.3% during the first quarter. DSM Capital Partners LLC now owns 848,206 shares of the company’s stock worth $114,211,000 after purchasing an additional 42,808 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Reddit by 8.9% during 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 period.

Key Stories 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.

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.