BNP Paribas Exane Has Lowered Expectations for Reddit (NYSE:RDDT) Stock Price

Reddit (NYSE:RDDT) had its price objective decreased by research analysts at BNP Paribas Exane from $180.00 to $110.00 in a report released on Friday. BNP Paribas Exane‘s price objective indicates a potential upside of 20.09% from the stock’s current price.

Other equities analysts have also recently issued reports about the company. KeyCorp cut Reddit from an “overweight” rating to a “sector weight” rating in a research report on Friday. Citizens Jmp cut Reddit from a “market outperform” rating to a “market perform” rating in a report on Friday. Telsey Advisory Group set a $240.00 target price on Reddit in a research note on Friday, July 31st. Wall Street Zen downgraded Reddit from a “buy” rating to a “hold” rating in a research note on Sunday, August 9th. Finally, Oppenheimer lowered Reddit from an “outperform” rating to a “market perform” rating in a report on Friday. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and fifteen have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Reddit has a consensus rating of “Moderate Buy” and a consensus target price of $180.91.

Reddit Stock Down 0.1%

RDDT traded down $0.13 on Friday, hitting $91.60. The company’s stock had a trading volume of 8,786,213 shares, compared to its average volume of 5,539,729. Reddit has a 12 month low of $89.28 and a 12 month high of $263.50. The firm has a market cap of $17.62 billion, a P/E ratio of 18.65, a price-to-earnings-growth ratio of 0.42 and a beta of 2.05. The company’s 50 day simple moving average is $150.37 and its 200-day simple moving average is $160.26.

Reddit (NYSE:RDDT) last issued its earnings results 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 net margin of 32.10% and a return on equity of 30.57%. The business’s revenue for the quarter was up 53.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.80 EPS. Equities analysts predict that Reddit will post 5.28 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Steve Huffman sold 18,000 shares of Reddit stock in a transaction on Friday, August 14th. The stock was sold at an average price of $178.16, for a total transaction of $3,206,880.00. Following the completion of the sale, the chief executive officer owned 373,814 shares of the company’s stock, valued at approximately $66,598,702.24. This trade represents a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a 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 A. Sauerberg sold 5,128 shares of the business’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 transaction, the director owned 27,087 shares of the company’s stock, valued at approximately $4,331,753.04. The trade was a 15.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 306,052 shares of company stock worth $49,754,523 in the last three months. Corporate insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

A number of large investors have recently modified their holdings of RDDT. Sunbelt Securities Inc. increased its position in shares of Reddit by 87.5% in the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after purchasing an additional 91 shares during the last quarter. Ascentis Independent Advisors purchased a new stake in Reddit in the first quarter valued at approximately $30,000. EverSource Wealth Advisors LLC lifted its position in Reddit by 48.1% during the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after purchasing an additional 64 shares during the last quarter. Beacon Investment Advisory Services Inc. bought a new stake in Reddit during the second quarter valued at approximately $35,000. Finally, Root Financial Partners LLC purchased a new position in Reddit in the 3rd quarter worth approximately $41,000.

Reddit News Summary

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.