Reddit (NYSE:RDDT) Stock Gets Price Target Cut from Wells Fargo & Company

Reddit (NYSE:RDDT) had its price objective lowered by Wells Fargo & Company from $142.00 to $110.00 in a report issued on Friday morning,Benzinga reports. The firm currently has an equal weight rating on the stock.

RDDT has been the topic of a number of other reports. Roth Capital reaffirmed a “neutral” rating and set a $145.00 price target on shares of Reddit in a research report on Monday, August 3rd. Truist Financial cut their target price on Reddit from $275.00 to $210.00 and set a “buy” rating on the stock in a research report on Friday. Weiss Ratings reissued a “hold (c)” rating on shares of Reddit in a report on Wednesday, August 5th. Jefferies Financial Group set a $250.00 price target on shares of Reddit in a research report on Friday, July 10th. Finally, Cantor Fitzgerald decreased their price target on shares of Reddit from $170.00 to $120.00 and set a “neutral” rating for the company in a research report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $197.61.

Reddit Trading Up 0.0%

RDDT stock opened at $91.74 on Friday. Reddit has a 1-year low of $89.28 and a 1-year high of $263.50. The company’s 50 day moving average is $150.37 and its 200 day moving average is $160.26. The stock has a market cap of $17.65 billion, a price-to-earnings ratio of 18.72, a price-to-earnings-growth ratio of 0.42 and a beta of 2.05.

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

Insider Buying and Selling at Reddit

In other news, COO Jennifer L. Wong sold 60,000 shares of the firm’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 sale, the chief operating officer owned 1,012,226 shares in the company, valued at $152,390,624.30. This trade represents a 5.60% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Huffman sold 17,308 shares of the stock in a transaction dated 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 owned 336,432 shares in the company, valued at $53,348,022.24. This trade represents a 4.89% 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. Insiders sold 306,052 shares of company stock valued at $49,754,523 in the last quarter. Company insiders own 28.48% of the company’s stock.

Hedge Funds Weigh In On Reddit

A number of hedge funds have recently made changes to their positions in the business. Sunbelt Securities Inc. boosted its holdings in Reddit by 87.5% during the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock valued at $26,000 after acquiring an additional 91 shares during the period. EverSource Wealth Advisors LLC raised its position in shares of Reddit by 48.1% in the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after buying an additional 64 shares during the last quarter. Beacon Investment Advisory Services Inc. acquired a new position in Reddit in the second quarter valued at approximately $35,000. Ascentis Independent Advisors purchased a new position in Reddit during the 1st quarter valued at about $30,000. Finally, Hager Investment Management Services LLC lifted its position in shares of 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 News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported third-quarter revenue of approximately $895 million, up 53% year over year, and earnings of $1.40 per share, exceeding analyst expectations. Advertising revenue increased 54%, while improved monetization and first-week app retention—up more than 50% year over year—provided evidence of continued platform engagement. Reddit Q3 Earnings Beat on Ad Growth and Strong Monetization
• Positive Sentiment: Several analysts retained constructive views despite reducing their targets. Citigroup, Truist Financial, B. Riley and Wedbush still rated RDDT Buy or Outperform, with targets above the current trading level, suggesting potential long-term recovery if user engagement and monetization improve. Reddit Analysts Slash Their Forecasts Following Q3 Earnings
• Neutral Sentiment: Reddit plans to test a primarily logged-in experience in international markets to reduce data scraping, strengthen data protection and limit its reliance on search referrals. Management is also responding to the growing impact of Google AI search features on website traffic. Reddit Search Traffic Declines and Visitor Sign-In Plans
• Negative Sentiment: Management’s outlook was the main catalyst for the selloff. Search traffic was described as meaningfully lower, and daily active unique visitors could decline by a low double-digit percentage in the fourth quarter if Google referrals continue weakening. The logged-in-only strategy could further reduce casual and logged-out users before improving engagement or monetization.
• Negative Sentiment: Analysts broadly cut price targets, including Wells Fargo to $110, Cantor Fitzgerald to $120 and Bernstein to $120; Oppenheimer and Citizens JMP downgraded the stock to market perform. Investors are concerned that international user growth is less valuable than U.S. growth, while Meta and Google remain powerful advertising competitors.
• Negative Sentiment: Levi & Korsinsky and Block & Leviton announced investigations into whether Reddit adequately disclosed the risks associated with its logged-in-only transition and search-traffic exposure, adding legal and reputational uncertainty. Reddit Investigation Notice

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.