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

Reddit (NYSE:RDDT) had its price objective dropped by investment analysts at JPMorgan Chase & Co. from $200.00 to $185.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a “neutral” rating on the stock. JPMorgan Chase & Co.‘s price target points to a potential upside of 30.96% from the stock’s current price.

Other analysts also recently issued research reports about the stock. Weiss Ratings reissued a “hold (c)” rating on shares of Reddit in a report on Friday, May 8th. Citigroup reiterated a “market outperform” rating on shares of Reddit in a research report on Friday. Jefferies Financial Group set a $250.00 price target on Reddit in a research note on Friday, July 10th. KeyCorp started coverage on Reddit in a report on Wednesday. They issued an “overweight” rating and a $225.00 target price on the stock. Finally, Truist Financial raised their price target on Reddit from $265.00 to $275.00 and gave the company a “buy” rating in a research report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat, Reddit currently has an average rating of “Moderate Buy” and a consensus price target of $223.16.

Reddit Stock Down 20.7%

RDDT stock traded down $36.78 on Friday, reaching $141.26. 23,941,724 shares of the company’s stock were exchanged, compared to its average volume of 5,231,720. The stock has a fifty day moving average of $176.74 and a 200-day moving average of $165.09. Reddit has a twelve month low of $119.27 and a twelve month high of $282.95. The firm has a market cap of $27.19 billion, a PE ratio of 40.16 and a beta of 1.93.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, beating analysts’ consensus estimates of $0.95 by $0.30. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The company had revenue of $804.91 million during the quarter, compared to the consensus estimate of $731.00 million. During the same quarter last year, the company earned $0.45 earnings per share. Reddit’s quarterly revenue was up 61.0% compared to the same quarter last year. On average, equities research analysts predict that Reddit will post 4.85 EPS for the current fiscal year.

Insider Activity at Reddit

In other news, COO Jennifer L. Wong sold 39,166 shares of the company’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $176.94, for a total transaction of $6,930,032.04. Following the completion of the sale, the chief operating officer directly owned 1,050,339 shares in the company, valued at $185,846,982.66. This represents a 3.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Marie Reynolds sold 808 shares of the stock in a transaction 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 in the company, valued at $3,012,000. This trade represents a 5.09% 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. Over the last three months, insiders sold 169,141 shares of company stock worth $28,680,845. 28.48% of the stock is owned by company insiders.

Institutional Trading of Reddit

Institutional investors have recently modified their holdings of the company. Truist Financial Corp raised its stake in shares of Reddit by 67.7% during the fourth quarter. Truist Financial Corp now owns 15,659 shares of the company’s stock valued at $3,600,000 after purchasing an additional 6,321 shares during the period. Swiss Life Asset Management Ltd boosted its stake in shares of Reddit by 63.2% in the fourth quarter. Swiss Life Asset Management Ltd now owns 32,003 shares of the company’s stock valued at $7,357,000 after purchasing an additional 12,398 shares during the period. Calamos Advisors LLC acquired a new stake in Reddit during the 4th quarter valued at $2,299,000. Handelsbanken Fonder AB lifted its holdings in Reddit by 22.9% in the 4th quarter. Handelsbanken Fonder AB now owns 37,000 shares of the company’s stock worth $8,505,000 after buying an additional 6,900 shares in the last quarter. Finally, Berkshire Capital Holdings Inc. boosted its position in Reddit by 326,400.0% in the 4th quarter. Berkshire Capital Holdings Inc. now owns 32,650 shares of the company’s stock valued at $7,505,000 after buying an additional 32,640 shares during the last quarter.

Key Reddit News

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 and well above the $731 million consensus estimate. Adjusted earnings of $1.25 per share also exceeded expectations of $0.95, while profit rose to $253 million. Reddit crushes revenue and earnings estimates, issues strong guidance
• Positive Sentiment: Management forecast third-quarter revenue of $860 million to $870 million, ahead of the roughly $830 million analyst consensus. Growth in advertising and AI-powered ad tools is helping attract marketers, and the company is pursuing additional products to increase engagement. Reddit expects revenue above estimates as AI tools attract advertisers
• Positive Sentiment: Reddit is testing a video-focused experience that could let users watch videos and listen to posts in the background, potentially creating new engagement and monetization opportunities. Reddit is testing a new way to watch and listen to its viral posts
• Neutral Sentiment: Analyst views remain mixed: Truist raised its price target to $275 and maintained a buy rating, while Wedbush lowered its target to $221 but retained an outperform rating. Cantor Fitzgerald cut its target to $170 and assigned a neutral rating. Reddit analyst price-target updates
• Negative Sentiment: Management warned that search referrals had become “choppy” and that traffic trends may remain volatile. Investors fear Google AI Overviews and other AI search products could reduce the traditional search links that send users to Reddit, potentially undermining long-term audience growth and advertising revenue. Reddit stock plunges on choppy search referrals warning
• Negative Sentiment: Reports also cited disappointing U.S. daily-user growth and a lack of newly announced AI licensing deals. These concerns outweighed the earnings beat, leading investors to question whether Reddit’s recent growth rate is sustainable. Reddit stock tumbles as AI deals and U.S. user metrics disappoint

Reddit Company Profile

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.