Reddit (NYSE:RDDT) Stock Gets Price Target Cut from Argus

Reddit (NYSE:RDDT) had its price target trimmed by Argus from $225.00 to $150.00 in a research note released on Thursday, MarketBeat reports. They currently have a buy rating on the stock.

Other equities analysts have also recently issued reports about the company. Oppenheimer cut Reddit from an “outperform” rating to a “market perform” rating in a research report on Friday, October 30th. BNP Paribas Exane reduced their target price on Reddit from $180.00 to $110.00 in a report on Friday, October 30th. The Goldman Sachs Group decreased their price target on Reddit from $215.00 to $140.00 in a research note on Friday, October 30th. Zacks Research raised Reddit from a “hold” rating to a “strong-buy” rating in a report on Tuesday, October 27th. Finally, Jefferies Financial Group lowered their price target on Reddit from $200.00 to $155.00 in a report on Friday, October 30th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and fifteen have given a Hold rating to the company. Based on data from MarketBeat.com, Reddit presently has a consensus rating of “Moderate Buy” and an average target price of $175.45.

Reddit Trading Down 1.3%

NYSE:RDDT traded down $1.26 on Thursday, reaching $98.29. 3,250,022 shares of the stock traded hands, compared to its average volume of 7,737,861. The company has a market capitalization of $18.98 billion, a price-to-earnings ratio of 20.06, a PEG ratio of 0.40 and a beta of 2.28. Reddit has a 12 month low of $89.28 and a 12 month high of $263.50. The company’s fifty day simple moving average is $139.26 and its 200 day simple moving average is $153.91.

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 the consensus estimate 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 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 period in the previous year, the company earned $0.80 earnings per share. Equities analysts anticipate that Reddit will post 5.42 EPS for the current fiscal year.

Insiders Place Their Bets

In other Reddit news, Director Robert Sauerberg sold 5,128 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total transaction of $820,069.76. Following the completion of the transaction, the director owned 27,087 shares in the company, valued at $4,331,753.04. This trade represents a 15.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Jennifer 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 completion of the transaction, the chief operating officer directly owned 1,012,226 shares of the company’s stock, valued at $152,390,624.30. The trade was a 5.60% decrease in their ownership of the stock. 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. Over the last three months, insiders have sold 202,052 shares of company stock worth $30,952,353. Company insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

Several institutional investors and hedge funds have recently made changes to their positions in the business. Sunbelt Securities Inc. raised its stake in Reddit by 87.5% in the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after buying an additional 91 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position in Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after acquiring an additional 64 shares in the last quarter. Beacon Investment Advisory Services Inc. bought a new stake in Reddit during the 2nd quarter valued at $35,000. Root Financial Partners LLC purchased a new position in shares of Reddit in the 3rd quarter valued at $41,000. Finally, Cassaday & Co Wealth Management LLC purchased a new position in shares of Reddit in the 1st quarter valued at $46,000.

Recent Reddit Headlines

These are some of the RDDT headlines that stood out recently:

• Positive Sentiment: Recent coverage highlights Reddit as a potential long-term value and discusses its push to increase logged-in users—an effort that could strengthen engagement and monetization. Why Reddit is a top value stock for the long term Reddit stock may be undervalued following its logged-in push
• Neutral Sentiment: CEO Steve Huffman described AI as a “paradox” for Reddit. AI may create opportunities as well as competitive risks, but the coverage underscores uncertainty about its net impact on the business. Reddit CEO explains the AI paradox
• Negative Sentiment: Similarweb data cited in coverage shows Reddit traffic down 13% year over year, with Google’s AI Overviews reportedly reducing search referrals. That could weigh on audience growth and advertising opportunities. Reddit traffic is down 13%, thanks to Google’s AI Overviews

About Reddit

Reddit, Inc. operates Reddit, an online platform where users share posts, discuss topics and participate in communities known as subreddits. Members can submit text, images, videos and links, comment on posts, and vote on content, helping shape what appears in each community. The company generates revenue primarily through advertising and also offers paid subscriptions and other products. Reddit serves users and advertisers around the world through its website and mobile applications. Reddit was founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz.