Reddit Inc. (NYSE:RDDT) Stock Has Average Price Target of $219.29

Shares of Reddit Inc. (NYSE:RDDT) have been given a consensus rating of “Moderate Buy” by the thirty-one brokerages that are covering the stock, Marketbeat reports. Fifteen investment analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and two have given a strong buy rating to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $180.91.

RDDT has been the topic of several recent analyst reports. Bank of America reissued a “neutral” rating and issued a $135.00 target price (down from $190.00) on shares of Reddit in a report on Friday. DA Davidson cut their price target on Reddit from $185.00 to $125.00 and set a “buy” rating for the company in a report on Monday. KeyCorp downgraded shares of Reddit from an “overweight” rating to a “sector weight” rating in a research report on Friday. Roth Capital reissued a “neutral” rating and set a $145.00 price objective on shares of Reddit in a report on Monday, August 3rd. Finally, Needham & Company LLC decreased their price objective on shares of Reddit from $300.00 to $150.00 and set a “buy” rating on the stock in a report on Friday.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s underlying financial results remain strong: quarterly revenue increased 53% year over year to approximately $895 million, while earnings exceeded analyst expectations. A separate analysis also highlighted improving average revenue per user, suggesting that advertiser monetization and engagement remain healthy. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Although analysts broadly reduced their targets, many remain above the recent share price. Deutsche Bank maintained a “buy” rating with a $165 target, while Jefferies, Goldman Sachs, Piper Sandler and JPMorgan assigned targets ranging from $140 to $155, $145 and $150, respectively. This indicates that the selloff may have created potential value if Reddit stabilizes traffic and user growth. Deutsche Bank Reddit Rating
• Neutral Sentiment: Analyst valuation comparisons continue to debate whether RDDT offers better value than other internet-platform stocks, including Spotify. The discussion reinforces that Reddit’s valuation depends heavily on its ability to convert engagement into sustainable advertising growth. RDDT vs. SPOT
• Negative Sentiment: The dominant catalyst is concern that Google’s AI search changes are reducing traffic to Reddit, particularly in the United States. Investors are also worried that Reddit’s logged-in-only strategy could limit user acquisition and raise the cost of attracting new users. Reddit Stock Sinks as Q3 Results Clash With User Outlook
• Negative Sentiment: A wave of target reductions and downgrades—including moves to “neutral,” “hold,” “in-line” and “market perform”—has weakened investor confidence, even though revised targets remain above the recent price. Reddit Fair Value Moves Lower
• Negative Sentiment: Kirby McInerney LLP announced an investigation into potential securities-law or business-practice violations involving Reddit and its management. The announcement is preliminary and does not establish wrongdoing, but it adds legal and reputational risk. Reddit Investigation Announcement

Insider Activity

In other Reddit news, CEO Steve Huffman sold 17,308 shares of the firm’s stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $158.57, for a total value of $2,744,529.56. Following the transaction, the chief executive officer directly owned 336,432 shares of the company’s stock, valued at approximately $53,348,022.24. This trade represents a 4.89% decrease in their ownership of the stock. The sale 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, COO Jennifer L. Wong sold 60,000 shares of Reddit stock in a transaction on Wednesday, October 14th. The stock was sold at an average price of $150.55, for a total transaction of $9,033,000.00. Following the sale, the chief operating officer directly owned 1,012,226 shares of the company’s stock, valued at $152,390,624.30. This represents a 5.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 288,052 shares of company stock valued at $46,878,483 over the last three months. 28.48% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Sunbelt Securities Inc. lifted its position in Reddit by 87.5% during the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after acquiring an additional 91 shares during the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of 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 during the period. Beacon Investment Advisory Services Inc. acquired a new position in shares of Reddit in the second quarter valued at approximately $35,000. Ascentis Independent Advisors bought a new position in shares of Reddit during the first quarter worth approximately $30,000. Finally, Hager Investment Management Services LLC lifted its holdings in Reddit by 522.2% during the 2nd quarter. Hager Investment Management Services LLC now owns 280 shares of the company’s stock worth $49,000 after purchasing an additional 235 shares during the last quarter.

Reddit Stock Down 0.7%

Shares of RDDT opened at $91.05 on Tuesday. The stock has a market cap of $17.52 billion, a price-to-earnings ratio of 18.58, a P/E/G ratio of 0.62 and a beta of 2.05. Reddit has a 12 month low of $89.28 and a 12 month high of $263.50. The company has a 50-day moving average price of $149.13 and a two-hundred day moving average price of $159.42.

Reddit (NYSE:RDDT) last issued its 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 analysts’ expectations of $874.91 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%. Reddit’s quarterly revenue was up 53.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.80 EPS. Equities research analysts expect that Reddit will post 5.28 EPS for the current fiscal year.

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.