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

Reddit (NYSE:RDDT) had its target price reduced by equities research analysts at Piper Sandler from $195.00 to $145.00 in a note issued to investors on Friday. Piper Sandler‘s price target points to a potential upside of 58.91% from the company’s current price.

RDDT has been the subject of a number of other research reports. Evercore cut shares of Reddit from an “outperform” rating to an “in-line” rating and set a $120.00 price target for the company. in a report on Monday. KeyCorp lowered shares of Reddit from an “overweight” rating to a “sector weight” rating in a report on Friday. Morgan Stanley cut their target price on Reddit from $240.00 to $210.00 and set an “overweight” rating on the stock in a research report on Friday, August 21st. Truist Financial reduced their target price on Reddit from $275.00 to $210.00 and set a “buy” rating for the company in a research note on Friday. Finally, Oppenheimer cut Reddit from an “outperform” rating to a “market perform” rating in a research report on Friday. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and fifteen have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $180.91.

Reddit Stock Down 0.5%

Shares of RDDT traded down $0.48 during mid-day trading on Friday, hitting $91.25. 9,015,418 shares of the company traded hands, compared to its average volume of 5,541,294. The company has a market capitalization of $17.56 billion, a PE ratio of 18.68, a price-to-earnings-growth ratio of 0.42 and a beta of 2.05. The business has a 50 day moving average of $150.37 and a 200 day moving average of $160.26. Reddit has a 1-year low of $89.28 and a 1-year high of $263.50.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, October 29th. The company reported $1.40 EPS for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. The company 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%. Reddit’s revenue for the quarter was up 53.0% on a year-over-year basis. During the same period last year, the business earned $0.80 EPS. As a group, research analysts expect that Reddit will post 5.28 EPS for the current fiscal year.

Insiders Place Their Bets

In other Reddit news, COO Jennifer Wong sold 75,000 shares of Reddit stock in a transaction that occurred 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 sale, the chief operating officer directly owned 1,050,339 shares in the company, valued at approximately $187,538,028.45. The trade was a 6.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through 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 the company’s stock in a transaction on Friday, August 14th. The shares were sold at an average price of $178.16, for a total transaction of $3,206,880.00. Following the completion of the sale, the chief executive officer directly owned 373,814 shares in the company, valued at $66,598,702.24. This trade represents a 4.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 306,052 shares of company stock valued at $49,754,523. 28.48% of the stock is owned by insiders.

Institutional Investors Weigh In On Reddit

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Sunbelt Securities Inc. raised its stake in shares of 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 buying an additional 91 shares during the last quarter. EverSource Wealth Advisors LLC boosted its stake in shares of Reddit by 48.1% in the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after buying an additional 64 shares during the last quarter. Beacon Investment Advisory Services Inc. purchased a new stake in shares of Reddit in the second quarter worth about $35,000. Ascentis Independent Advisors acquired a new stake in Reddit during the first quarter worth about $30,000. Finally, Hager Investment Management Services LLC grew its holdings in Reddit by 522.2% during the second quarter. Hager Investment Management Services LLC now owns 280 shares of the company’s stock worth $49,000 after acquiring an additional 235 shares during the period.

Trending Headlines about Reddit

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.