Reddit (NYSE:RDDT) Given New $155.00 Price Target at Jefferies Financial Group

Reddit (NYSE:RDDT) had its target price cut by equities research analysts at Jefferies Financial Group from $200.00 to $155.00 in a research note issued on Friday. Jefferies Financial Group‘s price objective points to a potential upside of 69.22% from the company’s previous close.

Other research analysts have also issued research reports about the stock. Wall Street Zen lowered shares of Reddit from a “buy” rating to a “hold” rating in a research note on Sunday, August 9th. Deutsche Bank Aktiengesellschaft reduced their price objective on shares of Reddit from $200.00 to $165.00 and set a “buy” rating for the company in a research note on Friday. Roth Capital restated a “neutral” rating and set a $145.00 target price on shares of Reddit in a report on Monday, August 3rd. Evercore cut Reddit from an “outperform” rating to an “in-line” rating and set a $120.00 price target for the company. in a research report on Monday. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Reddit in a research note on Wednesday, August 5th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and fifteen have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $180.91.

Reddit Trading Down 0.1%

RDDT stock traded down $0.13 during mid-day trading on Friday, hitting $91.60. The stock had a trading volume of 8,786,213 shares, compared to its average volume of 5,539,729. Reddit has a 1-year low of $89.28 and a 1-year high of $263.50. The company has a fifty day moving average of $150.37 and a 200 day moving average of $160.26. The stock has a market capitalization of $17.62 billion, a price-to-earnings ratio of 18.65, a PEG ratio of 0.42 and a beta of 2.05.

Reddit (NYSE:RDDT) last announced its quarterly earnings results on Thursday, October 29th. The company reported $1.40 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 analysts’ expectations of $874.91 million. During the same quarter in the previous year, the business posted $0.80 EPS. The firm’s quarterly revenue was up 53.0% compared to the same quarter last year. As a group, sell-side analysts expect that Reddit will post 5.28 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Reddit news, COO Jennifer Wong sold 75,000 shares of the business’s stock in a transaction on Friday, August 14th. The shares were sold at an average price of $178.55, for a total transaction of $13,391,250.00. Following the completion of the transaction, the chief operating officer owned 1,050,339 shares of the company’s stock, valued at $187,538,028.45. The trade was a 6.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Huffman sold 18,000 shares of Reddit stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $178.16, for a total value of $3,206,880.00. Following the completion of the transaction, the chief executive officer owned 373,814 shares in the company, valued at $66,598,702.24. The trade was a 4.59% 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 have sold 306,052 shares of company stock worth $49,754,523 in the last quarter. 28.48% of the stock is currently owned by company insiders.

Institutional Trading of Reddit

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RDDT. Wellington Management Group LLP boosted its holdings in Reddit by 21.8% during the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock valued at $271,572,000 after purchasing an additional 280,030 shares in the last quarter. State Street Corp raised its holdings in shares of Reddit by 8.7% in the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company’s stock worth $517,197,000 after buying an additional 237,523 shares in the last quarter. Moore Capital Management LP raised its holdings in shares of Reddit by 611.4% in the 2nd quarter. Moore Capital Management LP now owns 12,577 shares of the company’s stock worth $2,183,000 after buying an additional 10,809 shares in the last quarter. Light Street Capital Management LLC bought a new position in shares of Reddit during the 2nd quarter worth approximately $31,678,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab lifted its position in shares of Reddit by 102.3% during the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 19,120 shares of the company’s stock worth $3,319,000 after buying an additional 9,670 shares during the period.

Reddit News Summary

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.