Reddit (NYSE:RDDT) Cut to Market Perform at Oppenheimer

Reddit (NYSE:RDDT) was downgraded by investment analysts at Oppenheimer from an “outperform” rating to a “market perform” rating in a research report issued to clients and investors on Friday, Briefing.com reports.

Several other research analysts also recently weighed in on RDDT. Robert W. Baird set a $185.00 price target on shares of Reddit in a research report on Friday, July 31st. Wall Street Zen lowered Reddit from a “buy” rating to a “hold” rating in a research note on Sunday, August 9th. Cantor Fitzgerald reduced their price objective on Reddit from $170.00 to $120.00 and set a “neutral” rating for the company in a research note on Friday. Morgan Stanley decreased their target price on Reddit from $240.00 to $210.00 and set an “overweight” rating on the stock in a report on Friday, August 21st. Finally, Sanford C. Bernstein reiterated a “market perform” rating and set a $180.00 target price on shares of Reddit in a research report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and thirteen have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $217.68.

Reddit Stock Down 3.3%

NYSE RDDT opened at $130.29 on Friday. The company has a 50-day moving average price of $151.54 and a 200-day moving average price of $161.02. Reddit has a 52 week low of $119.27 and a 52 week high of $263.50. The firm has a market capitalization of $25.07 billion, a P/E ratio of 30.30, a PEG ratio of 0.62 and a beta of 2.05.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Thursday, October 29th. The company reported $1.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. The company had revenue of $894.96 million for the quarter, compared to the consensus estimate of $874.91 million. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The firm’s revenue was up 53.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.80 earnings per share. As a group, equities research analysts anticipate that Reddit will post 5.28 EPS for the current year.

Insider Transactions at Reddit

In related news, CEO Steve Huffman sold 17,308 shares of Reddit stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $158.57, for a total transaction of $2,744,529.56. Following the transaction, the chief executive officer owned 336,432 shares in the company, valued at approximately $53,348,022.24. The trade was a 4.89% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert A. 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 transaction of $820,069.76. Following the completion of the transaction, the director directly owned 27,087 shares of the company’s stock, valued at $4,331,753.04. This represents a 15.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 306,052 shares of company stock valued at $49,754,523 over the last three months. Corporate insiders own 28.48% of the company’s stock.

Institutional Investors Weigh In On Reddit

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Integrity Alliance LLC. grew its position in shares of Reddit by 4.3% during the third quarter. Integrity Alliance LLC. now owns 2,536 shares of the company’s stock worth $361,000 after purchasing an additional 104 shares in the last quarter. Oregon Public Employees Retirement Fund bought a new stake in Reddit during the 3rd quarter valued at approximately $2,564,000. Aware Super Pty Ltd as trustee of Aware Super raised its stake in Reddit by 203.8% during the 3rd quarter. Aware Super Pty Ltd as trustee of Aware Super now owns 53,091 shares of the company’s stock valued at $7,562,000 after purchasing an additional 35,614 shares during the period. Gerber Kawasaki Wealth & Investment Management lifted its holdings in Reddit by 5.7% in the 3rd quarter. Gerber Kawasaki Wealth & Investment Management now owns 3,560 shares of the company’s stock worth $507,000 after purchasing an additional 192 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. lifted its holdings in Reddit by 1.9% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 245,252 shares of the company’s stock worth $34,934,000 after purchasing an additional 4,659 shares in the last quarter.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q3 results exceeded expectations: Reddit reported $894.96 million in revenue, up 53% year over year and above the $874.91 million consensus estimate. Adjusted earnings of $1.40 per share also surpassed the $1.33 estimate, compared with $0.80 a year earlier. Reddit Reports Third Quarter 2026 Results
• Positive Sentiment: Profitability remained strong: Net income increased 74%, while Reddit posted a 31.35% net margin and 29.02% return on equity. The results extend the company’s record of beating earnings expectations. Reddit Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Analyst support provided a partial offset: Zacks Research upgraded Reddit from “hold” to “strong buy,” potentially supporting sentiment after the selloff. Zacks Research Rating
• Neutral Sentiment: Product changes could improve engagement but carry execution risk: Reddit is testing “For You” and “Following” feeds and plans to move toward a primarily logged-in experience to limit content scraping. More logins could improve user data and monetization, but may reduce casual traffic. Reddit Login Requirement
• Negative Sentiment: Growth quality and outlook raised concerns: U.S. daily users fell by 0.9 million, while international users increased by 15.2 million. Because U.S. users generate substantially more revenue, the geographic mix could pressure monetization. Reports also indicated that fourth-quarter guidance fell short of expectations. Reddit Earns More From Fewer U.S. Users
• Negative Sentiment: Search traffic is deteriorating: Declining Google referrals, partly attributed to AI-powered search, threaten a major source of new visitors. Requiring logins could further reduce open-web discovery, explaining why investors reacted negatively despite the earnings beat. Reddit Search Traffic Declines

Reddit Company Profile

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.