Reddit (NYSE:RDDT) Cut to “Hold” at Loop Capital

Reddit (NYSE:RDDT) was downgraded by investment analysts at Loop Capital from a “buy” rating to a “hold” rating in a research report issued on Monday, Briefing.com reports. They presently have a $100.00 target price on the stock. Loop Capital‘s price objective indicates a potential upside of 9.00% from the stock’s previous close.

A number of other equities research analysts also recently weighed in on RDDT. BNP Paribas Exane assumed coverage on Reddit in a report on Friday, September 18th. They set a “neutral” rating and a $180.00 price objective on the stock. Morgan Stanley decreased their price objective on shares of Reddit from $240.00 to $210.00 and set an “overweight” rating on the stock in a report on Friday, August 21st. B. Riley Financial dropped their target price on shares of Reddit from $270.00 to $190.00 and set a “buy” rating for the company in a research note on Friday. Wedbush reduced their target price on shares of Reddit from $221.00 to $150.00 and set an “outperform” rating on the stock in a research report on Friday. Finally, Raymond James Financial reissued a “strong-buy” rating and set a $205.00 price objective on shares of Reddit in a report on Monday, August 17th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and fourteen have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Reddit currently has an average rating of “Moderate Buy” and a consensus target price of $187.77.

Reddit Stock Up 0.0%

RDDT stock opened at $91.74 on Monday. Reddit has a twelve month low of $89.28 and a twelve month high of $263.50. The company has a market cap of $17.65 billion, a PE ratio of 18.72, a price-to-earnings-growth ratio of 0.42 and a beta of 2.05. The business’s 50-day simple moving average is $150.37 and its 200 day simple moving average is $160.26.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, October 29th. The company reported $1.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 return on equity of 30.57% and a net margin of 32.10%. Reddit’s quarterly revenue was up 53.0% on a year-over-year basis. During the same period in the previous year, the business posted $0.80 earnings per share. On average, equities research analysts anticipate that Reddit will post 5.28 EPS for the current year.

Insider Transactions at Reddit

In related news, COO Jennifer Wong sold 60,000 shares of the business’s 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 completion of the sale, the chief operating officer directly owned 1,012,226 shares in the company, valued at $152,390,624.30. The trade was a 5.60% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available 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 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 sale, the director directly owned 27,087 shares in the company, valued at $4,331,753.04. This represents a 15.92% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 306,052 shares of company stock worth $49,754,523 over the last quarter. Company insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

A number of institutional investors and hedge funds have recently bought and sold shares of RDDT. Senvest Management LLC bought a new stake in Reddit in the first quarter valued at approximately $48,392,000. Robeco Institutional Asset Management B.V. lifted its holdings in shares of Reddit by 74.6% in the 3rd 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. Wellington Management Group LLP raised its holdings in 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 buying an additional 280,030 shares during the last quarter. Styrax Capital LP bought a new position in Reddit in the 2nd quarter valued at about $43,395,000. Finally, State Street Corp boosted its position 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 valued at $517,197,000 after buying an additional 237,523 shares during the last quarter.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Despite weaker U.S. daily active-user trends, Reddit’s revenue increased 53% year over year and advertising revenue per user rose substantially, suggesting strong engagement and advertiser monetization. A post-selloff analysis argued that the market’s reaction may be excessive. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Reddit’s revenue growth has overtaken The Trade Desk’s in a recent comparison, highlighting the company’s continued expansion and improving monetization potential. Reddit vs. The Trade Desk: One’s Revenue Growth Overtook the Other’s Lead
• Neutral Sentiment: RBC Capital reaffirmed its Hold rating, indicating neither a material improvement nor deterioration in its investment view. RBC Capital Reaffirms Their Hold Rating on Reddit
• Negative Sentiment: Investors are concerned that Google’s AI search changes are reducing Reddit’s unpaid search traffic. The company’s move toward a logged-in-only experience could protect monetization but may limit user growth and raise customer-acquisition costs. Reddit Stock Plunges After Google AI Cuts U.S. Traffic
• Negative Sentiment: Several firms reduced expectations: Oppenheimer and Citizens JMP downgraded Reddit to Market Perform, while Citigroup, Cantor Fitzgerald, Truist Financial, B. Riley, Wedbush and Wells Fargo cut their price targets or forecasts. Analyst Rating and Target Changes
• Negative Sentiment: The latest selloff followed quarterly results that beat revenue and earnings estimates but were overshadowed by an unfavorable user outlook, reinforcing concerns about traffic growth and future monetization. Reddit Stock Sinks as Q3 Results Clash With User 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.