Reddit (NYSE:RDDT) Stock Price Target Lowered at Citigroup

Reddit (NYSE:RDDT) had its price target cut by Citigroup from $245.00 to $186.00 in a research report released on Friday,Benzinga reports. They currently have a buy rating on the stock.

Several other research firms have also recently commented on RDDT. DA Davidson dropped their price objective on Reddit from $200.00 to $185.00 and set a “buy” rating on the stock in a research report on Friday, September 18th. Raymond James Financial reissued a “strong-buy” rating and issued a $205.00 target price on shares of Reddit in a research report on Monday, August 17th. Sanford C. Bernstein restated a “market perform” rating and set a $120.00 target price on shares of Reddit in a research note on Friday. UBS Group restated a “buy” rating on shares of Reddit in a research note on Friday. Finally, Jefferies Financial Group set a $250.00 price target on shares of Reddit in a report on Friday, July 10th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $197.61.

Reddit Trading Down 29.2%

RDDT stock opened at $91.74 on Friday. The stock’s 50 day simple moving average is $150.37 and its 200 day simple moving average is $160.26. Reddit has a 12-month low of $89.28 and a 12-month high of $263.50. The stock has a market capitalization of $17.65 billion, a PE ratio of 18.72, a price-to-earnings-growth ratio of 0.60 and a beta of 2.05.

Reddit (NYSE:RDDT) last posted 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. Reddit had a return on equity of 31.67% and a net margin of 32.10%. The business had revenue of $894.96 million during the quarter, compared to analyst estimates of $874.91 million. During the same quarter last year, the company earned $0.80 EPS. The company’s quarterly revenue was up 53.0% compared to the same quarter last year. On average, research analysts predict that Reddit will post 5.28 earnings per share for the current year.

Insider Transactions at Reddit

In related news, CEO Steve Huffman sold 18,000 shares of the company’s stock in a transaction on Friday, August 14th. The stock was 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 owned 373,814 shares in the company, valued at approximately $66,598,702.24. This represents a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 75,000 shares of the stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $178.55, for a total value of $13,391,250.00. Following the completion of the transaction, the chief operating officer directly owned 1,050,339 shares in the company, valued at approximately $187,538,028.45. This represents a 6.66% decrease in their position. 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 a total of 306,052 shares of company stock worth $49,754,523 in the last ninety days. Insiders own 28.48% of the company’s stock.

Institutional Investors Weigh In On Reddit

Large investors have recently made changes to their positions in the company. State Street Corp grew its position in shares of Reddit by 8.7% during the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company’s stock valued at $517,197,000 after acquiring an additional 237,523 shares during the period. Wellington Management Group LLP raised its holdings in Reddit by 21.8% in the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock worth $271,572,000 after purchasing an additional 280,030 shares during the period. DSM Capital Partners LLC raised its holdings in Reddit by 5.3% in the 1st quarter. DSM Capital Partners LLC now owns 848,206 shares of the company’s stock worth $114,211,000 after purchasing an additional 42,808 shares during the period. Robeco Institutional Asset Management B.V. lifted its position in Reddit by 74.6% during the third quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock valued at $115,243,000 after purchasing an additional 345,735 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Reddit by 8.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 481,893 shares of the company’s stock valued at $83,647,000 after purchasing an additional 39,540 shares in the last quarter.

Key Reddit News

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.