Reddit (NYSE:RDDT) Stock Gets Price Target Reduction from BNP Paribas Exane

Reddit (NYSE:RDDT) had its price objective trimmed by BNP Paribas Exane from $180.00 to $110.00 in a research note released on Friday.

A number of other analysts also recently issued reports on the stock. Truist Financial reduced their price target on shares of Reddit from $275.00 to $210.00 and set a “buy” rating on the stock in a report on Friday. KeyCorp downgraded shares of Reddit from an “overweight” rating to a “sector weight” rating in a report on Friday. Wall Street Zen lowered Reddit from a “buy” rating to a “hold” rating in a research report on Sunday, August 9th. Loop Capital cut Reddit from a “buy” rating to a “hold” rating and set a $100.00 target price on the stock. in a report on Monday. Finally, Zacks Research upgraded Reddit from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 27th. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and fifteen have issued a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $180.91.

Reddit Stock Performance

RDDT traded down $0.85 during trading on Friday, reaching $90.88. 9,154,382 shares of the company traded hands, compared to its average volume of 5,543,015. The company has a market cap of $17.49 billion, a P/E ratio of 18.64, a PEG ratio of 0.42 and a beta of 2.05. Reddit has a 12-month low of $89.28 and a 12-month high of $263.50. The firm has a fifty day simple moving average of $150.37 and a 200 day simple moving average of $160.26.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, October 29th. The company reported $1.40 EPS for the quarter, topping the consensus estimate of $1.33 by $0.07. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The firm had revenue of $894.96 million for the quarter, compared to the consensus estimate of $874.91 million. During the same quarter in the previous year, the firm earned $0.80 earnings per share. The company’s quarterly revenue was up 53.0% compared to the same quarter last year. As a group, sell-side analysts expect that Reddit will post 5.28 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Steve Huffman sold 17,308 shares of the firm’s stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $158.57, for a total value 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. This trade represents a 4.89% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 Reddit stock in a transaction that occurred 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 transaction, the director owned 27,087 shares of the company’s stock, valued at approximately $4,331,753.04. This trade represents a 15.92% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 306,052 shares of company stock valued at $49,754,523 over the last ninety days. 28.48% of the stock is owned by insiders.

Institutional Trading of Reddit

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Evansbrook LLC lifted its position in Reddit by 2.2% in the first quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock worth $368,000 after buying an additional 59 shares during the last quarter. Signaturefd LLC increased its position in Reddit by 7.6% during the second quarter. Signaturefd LLC now owns 878 shares of the company’s stock valued at $152,000 after acquiring an additional 62 shares during the last quarter. EverSource Wealth Advisors LLC increased its position in Reddit by 48.1% during the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after acquiring an additional 64 shares during the last quarter. Versant Capital Management Inc increased its position in Reddit by 31.1% during the second quarter. Versant Capital Management Inc now owns 291 shares of the company’s stock valued at $51,000 after acquiring an additional 69 shares during the last quarter. Finally, Central Pacific Bank Trust Division raised its stake in shares of Reddit by 8.6% in the third quarter. Central Pacific Bank Trust Division now owns 885 shares of the company’s stock valued at $126,000 after acquiring an additional 70 shares during the period.

More Reddit News

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.