Wedbush Has Lowered Expectations for Reddit (NYSE:RDDT) Stock Price

Reddit (NYSE:RDDT) had its price objective lowered by equities research analysts at Wedbush from $221.00 to $150.00 in a research note issued to investors on Friday, Benzinga reports. The firm currently has an “outperform” rating on the stock. Wedbush‘s price target points to a potential upside of 66.62% from the company’s current price.

RDDT has been the subject of several other reports. Deutsche Bank Aktiengesellschaft set a $200.00 price objective on Reddit in a report on Friday, July 31st. Bank of America reiterated a “neutral” rating on shares of Reddit in a research note on Friday. Truist Financial lowered their price objective on Reddit from $275.00 to $210.00 and set a “buy” rating on the stock in a research report on Friday. Wells Fargo & Company decreased their target price on Reddit from $187.00 to $142.00 and set an “equal weight” rating on the stock in a research note on Friday, July 31st. Finally, DA Davidson reduced their price target on shares of Reddit from $200.00 to $185.00 and set a “buy” rating on the stock in a report on Friday, September 18th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and thirteen have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $201.19.

Reddit Stock Performance

Shares of RDDT traded down $39.58 on Friday, hitting $90.03. 23,936,529 shares of the stock traded hands, compared to its average volume of 5,473,847. Reddit has a one year low of $89.79 and a one year high of $263.50. The company has a market capitalization of $17.32 billion, a PE ratio of 20.98, a P/E/G ratio of 0.62 and a beta of 2.05. The business has a 50 day simple moving average of $151.54 and a 200 day simple moving average of $161.02.

Reddit (NYSE:RDDT) last issued its earnings results on Thursday, October 29th. The company reported $1.40 EPS for the quarter, beating the consensus estimate of $1.33 by $0.07. The business had revenue of $894.96 million for the quarter, compared to the consensus estimate of $874.91 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%. The company’s revenue was up 53.0% compared to the same quarter last year. During the same period last year, the business posted $0.80 EPS. On average, equities analysts expect that Reddit will post 5.28 earnings per share for the current year.

Insider Activity

In other news, COO Jennifer Wong sold 60,000 shares of the firm’s stock in a transaction dated Wednesday, October 14th. The shares were sold at an average price of $150.55, for a total value of $9,033,000.00. Following the completion of the sale, the chief operating officer owned 1,012,226 shares in the company, valued at approximately $152,390,624.30. This trade represents a 5.60% decrease in their position. 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, CEO Steve Huffman sold 17,308 shares of the stock in a transaction dated 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 in the company, valued at $53,348,022.24. This trade represents a 4.89% 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 quarter, insiders have sold 306,052 shares of company stock valued at $49,754,523. 28.48% of the stock is currently owned by company insiders.

Institutional Trading of Reddit

Hedge funds and other institutional investors have recently bought and sold shares of the business. Sunbelt Securities Inc. grew its holdings in shares of Reddit by 87.5% in the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after purchasing an additional 91 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in Reddit by 48.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after acquiring an additional 64 shares in the last quarter. Beacon Investment Advisory Services Inc. bought a new position in Reddit in the 2nd quarter worth about $35,000. Ascentis Independent Advisors purchased a new stake in shares of Reddit in the first quarter valued at approximately $30,000. Finally, Hager Investment Management Services LLC grew its stake in Reddit by 522.2% in the second quarter. Hager Investment Management Services LLC now owns 280 shares of the company’s stock worth $49,000 after purchasing an additional 235 shares in the last quarter.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit exceeded third-quarter expectations, reporting adjusted EPS of $1.40 versus the $1.33 consensus and revenue of approximately $895 million versus $875 million expected. Revenue increased 53% year over year, while net income also grew substantially. Reddit Reports Third Quarter 2026 Results
• Positive Sentiment: Truist Financial and B. Riley maintained “buy” ratings despite lowering their price targets to $210 and $190, respectively, suggesting they still see significant long-term upside if Reddit can stabilize traffic and user growth. Reddit Analysts Slash Their Forecasts Following Q3 Earnings
• Neutral Sentiment: Reddit plans to test a primarily logged-in experience to reduce scraping and potentially improve engagement and monetization. However, requiring an account to view content could further reduce casual and search-driven visitors before the benefits materialize. Reddit Search Traffic and Visitor Sign-ins
• Negative Sentiment: Management issued weaker-than-expected fourth-quarter guidance and warned that daily active unique visitors could fall by a low-double-digit percentage from roughly 130 million. Declining Google referrals, increasingly driven by AI-generated search answers, are reducing Reddit’s audience funnel.
• Negative Sentiment: The audience mix is also becoming less attractive: U.S. daily users declined while international users increased, and U.S. users generate substantially more advertising revenue than international users. Reddit Earns More From Fewer U.S. Users
• Negative Sentiment: Several analysts became more cautious: Oppenheimer and Citizens JMP downgraded Reddit to “market perform,” while Bernstein lowered its target to $120 and Cantor Fitzgerald cut its target to $120 with a neutral rating. The broader technology selloff and concerns about AI’s impact on internet traffic added further pressure. Reddit Stock Guidance and DAU Decline

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.