Reddit (NYSE:RDDT) Price Target Cut to $185.00 by Analysts at JPMorgan Chase & Co.

Reddit (NYSE:RDDT) had its target price cut by JPMorgan Chase & Co. from $200.00 to $185.00 in a research note published on Friday morning,Benzinga reports. They currently have a neutral rating on the stock.

Several other equities research analysts also recently commented on the stock. Wells Fargo & Company decreased their target price on shares of Reddit from $187.00 to $142.00 and set an “equal weight” rating for the company in a research report on Friday. KeyCorp assumed coverage on shares of Reddit in a research report on Wednesday. They issued an “overweight” rating and a $225.00 price target on the stock. Wedbush cut their price target on Reddit from $250.00 to $221.00 and set an “outperform” rating for the company in a research note on Friday. Piper Sandler reissued an “overweight” rating and set a $195.00 price objective (down from $215.00) on shares of Reddit in a report on Friday. Finally, Citigroup reissued a “market outperform” rating on shares of Reddit in a research note on Friday. Two analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and eleven have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $223.16.

Reddit Trading Down 21.0%

NYSE RDDT opened at $140.67 on Friday. The company has a market cap of $27.08 billion, a P/E ratio of 32.71 and a beta of 1.93. The company has a fifty day simple moving average of $176.72 and a 200 day simple moving average of $164.92. Reddit has a 12-month low of $119.27 and a 12-month high of $282.95.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, topping the consensus estimate of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.97%. The firm had revenue of $804.91 million for the quarter, compared to the consensus estimate of $731.00 million. During the same quarter in the prior year, the company posted $0.45 earnings per share. The business’s revenue was up 61.0% on a year-over-year basis. Sell-side analysts predict that Reddit will post 4.85 EPS for the current year.

Insider Buying and Selling at Reddit

In other news, CAO Michelle Marie Reynolds sold 808 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the completion of the transaction, the chief accounting officer directly owned 15,060 shares of the company’s stock, valued at $3,012,000. This represents a 5.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing 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 Ladd Huffman sold 18,000 shares of the company’s stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $173.13, for a total value of $3,116,340.00. Following the completion of the transaction, the chief executive officer directly owned 373,814 shares of the company’s stock, valued at approximately $64,718,417.82. This represents a 4.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 169,141 shares of company stock worth $28,680,845. Insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

Hedge funds have recently bought and sold shares of the business. Sunbelt Securities Inc. boosted its position 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 purchasing an additional 91 shares during the last quarter. Ascentis Independent Advisors bought a new position in Reddit in the 1st quarter valued at $30,000. LOM Asset Management Ltd purchased a new stake in shares of Reddit during the 4th quarter valued at $33,000. EverSource Wealth Advisors LLC increased its position in shares of 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 purchasing an additional 64 shares during the last quarter. Finally, Beacon Investment Advisory Services Inc. bought a new stake in shares of Reddit during the 2nd quarter worth $35,000.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported second-quarter revenue of approximately $805 million, up 61% year over year, while earnings of $1.25 per share exceeded analysts’ estimates. Advertising demand, higher pricing and user growth supported stronger monetization. Reddit crushes revenue and earnings estimates, issues strong guidance
• Positive Sentiment: Management forecast third-quarter revenue of $860 million to $870 million, above Wall Street’s approximately $830 million expectation. AI-powered advertising tools, product upgrades and continued ad growth are expected to support momentum. Reddit expects revenue above estimates as AI tools attract advertisers
• Positive Sentiment: Analyst sentiment remains mixed but includes bullish views: Truist raised its price target to $275 and maintained a buy rating, while Wedbush kept an outperform rating with a $221 target. KeyCorp also upgraded Reddit to “strong buy.” Reddit analyst actions
• Neutral Sentiment: Reddit is testing a “video Reddit” experience that could let users watch videos and listen to posts in the background, potentially increasing engagement and creating new advertising opportunities over time. Reddit is testing a new way to watch and listen to its viral posts
• Negative Sentiment: The primary selloff trigger was management’s warning that search referrals have become “choppy” or volatile. Investors fear Google’s AI-generated search summaries and other AI search tools could reduce traffic to Reddit, weakening future user growth, engagement and advertising monetization. Reddit Stock Plunges on Choppy Search Referrals Warning
• Negative Sentiment: Investors were also disappointed by slower U.S. daily-user growth and the lack of announced new AI licensing deals, raising questions about Reddit’s longer-term traffic outlook. JPMorgan and Cantor Fitzgerald responded by lowering their price targets to $185 and $170, respectively, while assigning neutral ratings. Reddit earnings: why are investors concerned despite solid headline numbers

About Reddit

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called “subreddits,” each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.