Reddit (NYSE:RDDT) Price Target Cut to $120.00 by Analysts at Cantor Fitzgerald

Reddit (NYSE:RDDT) had its price target lowered by research analysts at Cantor Fitzgerald from $170.00 to $120.00 in a research note issued on Friday, Benzinga reports. The brokerage currently has a “neutral” rating on the stock. Cantor Fitzgerald‘s price objective would suggest a potential downside of 7.90% from the stock’s current price.

A number of other research firms also recently commented on RDDT. UBS Group reaffirmed a “buy” rating on shares of Reddit in a report on Friday, July 31st. Zacks Research raised shares of Reddit from a “hold” rating to a “strong-buy” rating in a research note on Tuesday. Jefferies Financial Group set a $250.00 price target on shares of Reddit in a research report on Friday, July 10th. Citizens Jmp cut shares of Reddit from a “mkt outperform” rating to a “market perform” rating in a research note on Friday. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Reddit in a report on Wednesday, August 5th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and thirteen have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $217.68.

Reddit Trading Down 3.3%

Shares of NYSE RDDT opened at $130.29 on Friday. The firm has a market capitalization of $25.07 billion, a price-to-earnings ratio of 31.33, a PEG ratio of 0.62 and a beta of 2.05. Reddit has a one year low of $119.27 and a one year high of $263.50. The business has a fifty day simple moving average of $151.54 and a 200 day simple moving average of $161.02.

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

Insider Transactions at Reddit

In related news, COO Jennifer L. Wong sold 75,000 shares of Reddit 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 sale, the chief operating officer owned 1,050,339 shares of the company’s stock, valued at approximately $187,538,028.45. The trade was a 6.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert A. Sauerberg sold 5,128 shares of the company’s 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 sale, the director owned 27,087 shares in the company, valued at $4,331,753.04. The trade was a 15.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 306,052 shares of company stock worth $49,754,523 in the last three months. Insiders own 28.48% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in RDDT. Evansbrook LLC grew its stake in shares of Reddit by 2.2% in the first quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock valued at $368,000 after buying an additional 59 shares in the last quarter. Signaturefd LLC raised its position in Reddit by 7.6% during the second quarter. Signaturefd LLC now owns 878 shares of the company’s stock worth $152,000 after acquiring an additional 62 shares in the last quarter. EverSource Wealth Advisors LLC raised its position in 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 acquiring an additional 64 shares in the last quarter. Versant Capital Management Inc raised its position in Reddit by 31.1% during the second quarter. Versant Capital Management Inc now owns 291 shares of the company’s stock worth $51,000 after acquiring an additional 69 shares in the last quarter. Finally, Central Pacific Bank Trust Division lifted its stake in Reddit by 8.6% in the third quarter. Central Pacific Bank Trust Division now owns 885 shares of the company’s stock valued at $126,000 after acquiring an additional 70 shares during the last quarter.

Key Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q3 results exceeded expectations: Reddit reported $894.96 million in revenue, up 53% year over year and above the $874.91 million consensus estimate. Adjusted earnings of $1.40 per share also surpassed the $1.33 estimate, compared with $0.80 a year earlier. Reddit Reports Third Quarter 2026 Results
• Positive Sentiment: Profitability remained strong: Net income increased 74%, while Reddit posted a 31.35% net margin and 29.02% return on equity. The results extend the company’s record of beating earnings expectations. Reddit Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Analyst support provided a partial offset: Zacks Research upgraded Reddit from “hold” to “strong buy,” potentially supporting sentiment after the selloff. Zacks Research Rating
• Neutral Sentiment: Product changes could improve engagement but carry execution risk: Reddit is testing “For You” and “Following” feeds and plans to move toward a primarily logged-in experience to limit content scraping. More logins could improve user data and monetization, but may reduce casual traffic. Reddit Login Requirement
• Negative Sentiment: Growth quality and outlook raised concerns: U.S. daily users fell by 0.9 million, while international users increased by 15.2 million. Because U.S. users generate substantially more revenue, the geographic mix could pressure monetization. Reports also indicated that fourth-quarter guidance fell short of expectations. Reddit Earns More From Fewer U.S. Users
• Negative Sentiment: Search traffic is deteriorating: Declining Google referrals, partly attributed to AI-powered search, threaten a major source of new visitors. Requiring logins could further reduce open-web discovery, explaining why investors reacted negatively despite the earnings beat. Reddit Search Traffic Declines

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.