What is KeyCorp’s Forecast for Reddit FY2026 Earnings?

Reddit Inc. (NYSE:RDDT) – Equities research analysts at KeyCorp raised their FY2026 earnings per share (EPS) estimates for shares of Reddit in a report released on Thursday, October 29th. KeyCorp analyst J. Patterson now expects that the company will post earnings of $5.41 per share for the year, up from their previous forecast of $4.90. KeyCorp currently has a “Sector Weight” rating on the stock. The consensus estimate for Reddit’s current full-year earnings is $5.35 per share. KeyCorp also issued estimates for Reddit’s FY2028 earnings at $7.06 EPS.

Several other research firms also recently issued reports on RDDT. Evercore downgraded Reddit from an “outperform” rating to a “hold” rating and set a $120.00 price target for the company. in a research note on Monday. Wells Fargo & Company lowered their price objective on shares of Reddit from $142.00 to $110.00 and set an “equal weight” rating on the stock in a research note on Friday, October 30th. The Goldman Sachs Group dropped their target price on shares of Reddit from $215.00 to $140.00 in a report on Friday, October 30th. Raymond James Financial restated a “strong-buy” rating and set a $205.00 target price on shares of Reddit in a research report on Monday, August 17th. Finally, Deutsche Bank Aktiengesellschaft cut their target price on shares of Reddit from $200.00 to $165.00 and set a “buy” rating for the company in a research report on Friday, October 30th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and fifteen have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Reddit has a consensus rating of “Moderate Buy” and an average target price of $180.91.

Reddit Stock Performance

Reddit stock opened at $96.04 on Wednesday. The firm has a market capitalization of $18.48 billion, a price-to-earnings ratio of 19.60, a price-to-earnings-growth ratio of 0.42 and a beta of 2.28. Reddit has a fifty-two week low of $89.28 and a fifty-two week high of $263.50. The stock’s fifty day moving average is $147.99 and its two-hundred day moving average is $158.63.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.07. The firm had revenue of $894.96 million during the quarter, compared to the consensus estimate 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 last year, the business posted $0.80 EPS.

Institutional Trading of Reddit

Institutional investors have recently modified their holdings of the company. Brighton Jones LLC raised its holdings in Reddit by 3.1% in the third quarter. Brighton Jones LLC now owns 29,673 shares of the company’s stock valued at $4,227,000 after buying an additional 891 shares during the period. Ethic Inc. grew its stake in Reddit by 9.0% during the third quarter. Ethic Inc. now owns 8,829 shares of the company’s stock worth $1,258,000 after buying an additional 731 shares during the period. Pictet Asset Management Holding SA grew its stake in Reddit by 16.2% during the third quarter. Pictet Asset Management Holding SA now owns 50,120 shares of the company’s stock worth $7,139,000 after buying an additional 6,982 shares during the period. Tennessee Valley Asset Management Partners increased its position in shares of Reddit by 97.0% in the third quarter. Tennessee Valley Asset Management Partners now owns 8,510 shares of the company’s stock worth $1,212,000 after acquiring an additional 4,190 shares in the last quarter. Finally, Parallel Advisors LLC increased its position in shares of Reddit by 20.8% in the third quarter. Parallel Advisors LLC now owns 4,846 shares of the company’s stock worth $690,000 after acquiring an additional 835 shares in the last quarter.

Insider Activity at Reddit

In related news, COO Jennifer Wong sold 60,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 14th. The shares were sold at an average price of $150.55, for a total transaction of $9,033,000.00. Following the completion of the transaction, the chief operating officer owned 1,012,226 shares of the company’s stock, valued at approximately $152,390,624.30. This represents a 5.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of the business’s stock in a transaction dated Tuesday, August 25th. The shares were 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 of the company’s stock, valued at approximately $4,331,753.04. This trade represents a 15.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 288,052 shares of company stock worth $46,878,483. 28.48% of the stock is owned by company insiders.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit is testing ads in search results, creating another way to monetize users already on the platform. This could help offset pressure from declining search traffic, though the test’s financial impact is not yet known. Article: Reddit tests ads in search results
• Positive Sentiment: The company’s latest reported quarter showed 53% year-over-year revenue growth and earnings above analyst expectations, evidence of continued business momentum despite the recent share-price decline. Article: Reddit Stock Plunges 30% Post Q3 Earnings
• Neutral Sentiment: KeyCorp raised its Q4 earnings estimate slightly but lowered its FY2027 forecast, a mixed signal on Reddit’s near-term earnings prospects. Article: KeyCorp earnings estimates
• Negative Sentiment: Declining search traffic and cautious revenue guidance have overshadowed the earnings beat. Investors are concerned that changes in how search engines and AI services surface Reddit content could weaken traffic and growth, particularly among users who are not logged in. Article: RDDT Q3 deep dive
• Negative Sentiment: Loop Capital and Evercore lowered their ratings to Hold, adding to the cautious analyst tone after the selloff. Article: Loop Capital lowers Reddit rating Article: Evercore lowers Reddit rating

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.