Deutsche Bank Aktiengesellschaft Has Lowered Expectations for Reddit (NYSE:RDDT) Stock Price

Reddit (NYSE:RDDT) had its price objective reduced by stock analysts at Deutsche Bank Aktiengesellschaft from $200.00 to $165.00 in a research report issued to clients and investors on Friday. The firm presently has a “buy” rating on the stock. Deutsche Bank Aktiengesellschaft‘s target price points to a potential upside of 80.13% from the company’s previous close.

Other research analysts also recently issued research reports about the company. Guggenheim reduced their target price on Reddit from $255.00 to $170.00 and set a “buy” rating on the stock in a report on Friday. Sanford C. Bernstein reiterated a “market perform” rating and issued a $120.00 price target (down from $180.00) on shares of Reddit in a report on Friday. Cantor Fitzgerald dropped their price target on Reddit from $170.00 to $120.00 and set a “neutral” rating on the stock in a research report on Friday. Jefferies Financial Group set a $250.00 price target on Reddit in a research report on Friday, July 10th. Finally, BNP Paribas Exane reduced their price objective on Reddit from $180.00 to $110.00 in a research note on Friday. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and fifteen have issued a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $180.91.

Reddit Stock Performance

Shares of RDDT stock traded down $0.13 during trading hours on Friday, hitting $91.60. 8,786,213 shares of the company were exchanged, compared to its average volume of 5,539,729. Reddit has a one year low of $89.28 and a one year high of $263.50. The business’s 50-day simple moving average is $150.37 and its two-hundred day simple moving average is $160.26. The stock has a market capitalization of $17.62 billion, a price-to-earnings ratio of 18.65, a P/E/G ratio of 0.42 and a beta of 2.05.

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

Insiders Place Their Bets

In other news, Director Robert A. Sauerberg sold 5,128 shares of the company’s stock in a transaction that occurred 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 approximately $4,331,753.04. This represents a 15.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Steve Huffman sold 18,000 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $178.16, for a total value of $3,206,880.00. Following the transaction, the chief executive officer directly owned 373,814 shares of the company’s stock, valued at $66,598,702.24. This trade represents a 4.59% 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. Insiders have sold 306,052 shares of company stock valued at $49,754,523 over the last quarter. Insiders own 28.48% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. State Street Corp boosted 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 acquiring an additional 237,523 shares during the period. Wellington Management Group LLP grew its position 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 acquiring an additional 280,030 shares during the last quarter. DSM Capital Partners LLC increased its holdings in shares of Reddit by 5.3% in the 1st quarter. DSM Capital Partners LLC now owns 848,206 shares of the company’s stock worth $114,211,000 after acquiring an additional 42,808 shares during the period. Robeco Institutional Asset Management B.V. increased its holdings in shares of Reddit by 74.6% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock worth $115,243,000 after acquiring an additional 345,735 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Reddit by 8.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 481,893 shares of the company’s stock valued at $83,647,000 after purchasing an additional 39,540 shares during the last quarter.

Key Stories 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.

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.