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

Reddit (NYSE:RDDT) had its price target lowered by Piper Sandler from $195.00 to $145.00 in a research report report published on Friday.

A number of other research firms also recently weighed in on RDDT. Zacks Research raised Reddit from a “hold” rating to a “strong-buy” rating in a report on Tuesday, October 27th. JPMorgan Chase & Co. decreased their price target on shares of Reddit from $185.00 to $150.00 and set a “neutral” rating on the stock in a research note on Friday. Wells Fargo & Company lowered their price target on shares of Reddit from $142.00 to $110.00 and set an “equal weight” rating on the stock in a research report on Friday. Sanford C. Bernstein reiterated a “market perform” rating and issued a $120.00 price objective (down from $180.00) on shares of Reddit in a research note on Friday. Finally, Cantor Fitzgerald dropped their price objective on shares of Reddit from $170.00 to $120.00 and set a “neutral” rating for the company in a research note on Friday. Two research 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 stock. According to MarketBeat, Reddit presently has a consensus rating of “Moderate Buy” and a consensus target price of $180.91.

Reddit Stock Performance

NYSE:RDDT traded down $0.85 during mid-day trading on Friday, hitting $90.88. 9,154,382 shares of the stock were exchanged, compared to its average volume of 5,543,015. The stock has a market capitalization of $17.49 billion, a price-to-earnings ratio of 18.64, a price-to-earnings-growth ratio of 0.42 and a beta of 2.05. The firm’s 50-day simple moving average is $150.37 and its 200 day simple moving average is $160.26. Reddit has a fifty-two week low of $89.28 and a fifty-two week high of $263.50.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, October 29th. The company reported $1.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.33 by $0.07. Reddit had a return on equity of 30.57% and a net margin of 32.10%. The business had revenue of $894.96 million during the quarter, compared to the consensus estimate of $874.91 million. During the same period in the previous year, the company posted $0.80 EPS. The firm’s quarterly revenue was up 53.0% on a year-over-year basis. On average, analysts predict that Reddit will post 5.28 EPS for the current fiscal year.

Insider Activity

In related news, CEO Steve Huffman sold 17,308 shares of the firm’s stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $158.57, for a total value of $2,744,529.56. Following the transaction, the chief executive officer owned 336,432 shares in the company, 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 document filed with the Securities & Exchange Commission, which is accessible through this link. 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 shares were sold at an average price of $159.92, for a total value of $820,069.76. Following the completion of the transaction, 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 SEC filing for this sale provides additional information. In the last three months, insiders sold 306,052 shares of company stock worth $49,754,523. 28.48% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Reddit

A number of large investors have recently bought and sold shares of the company. Sunbelt Securities Inc. increased its holdings in Reddit by 87.5% in the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock valued at $26,000 after buying an additional 91 shares during the period. Ascentis Independent Advisors acquired a new position in shares of Reddit in the 1st quarter valued at approximately $30,000. EverSource Wealth Advisors LLC raised its position in shares of Reddit by 48.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after buying an additional 64 shares in the last quarter. Beacon Investment Advisory Services Inc. bought a new stake in shares of Reddit during the 2nd quarter worth approximately $35,000. Finally, Root Financial Partners LLC bought a new stake in shares of Reddit during the 3rd quarter worth approximately $41,000.

Key Reddit News

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.