Reddit (NYSE:RDDT) Stock Price Target Lowered at Piper Sandler

Reddit (NYSE:RDDT) had its price objective lowered by Piper Sandler from $195.00 to $145.00 in a research report report published on Friday morning.

Several other brokerages also recently weighed in on RDDT. Wells Fargo & Company reduced their price target on Reddit from $142.00 to $110.00 and set an “equal weight” rating on the stock in a report on Friday. Truist Financial dropped their price objective on Reddit from $275.00 to $210.00 and set a “buy” rating for the company in a report on Friday. Evercore downgraded Reddit from an “outperform” rating to an “in-line” rating and set a $120.00 price objective on the stock. in a research report on Monday. Roth Capital reiterated a “neutral” rating and issued a $145.00 target price on shares of Reddit in a research note on Monday, August 3rd. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Reddit in a research note on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and fifteen have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $180.91.

Reddit Stock Down 0.3%

NYSE:RDDT traded down $0.30 during mid-day trading on Friday, hitting $91.43. 8,923,154 shares of the stock traded hands, compared to its average volume of 5,541,294. The stock has a market capitalization of $17.59 billion, a price-to-earnings ratio of 18.70, a PEG ratio of 0.42 and a beta of 2.05. Reddit has a 52 week low of $89.28 and a 52 week high of $263.50. The firm’s 50 day moving average is $150.37 and its two-hundred day moving average is $160.26.

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

Insider Buying and Selling at Reddit

In other Reddit news, CEO Steve Huffman sold 17,308 shares of Reddit stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $158.57, for a total transaction of $2,744,529.56. Following the completion of the sale, the chief executive officer directly owned 336,432 shares of the company’s stock, valued at $53,348,022.24. The trade was a 4.89% 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, Director Robert Sauerberg sold 5,128 shares of the company’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the completion of the sale, the director owned 27,087 shares of the company’s stock, valued at $4,331,753.04. This represents a 15.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 306,052 shares of company stock valued at $49,754,523 in the last ninety days. Corporate insiders own 28.48% of the company’s stock.

Institutional Inflows and Outflows

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

Key Headlines Impacting 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.