Reddit (NYSE:RDDT) Cut to Hold at Loop Capital

Loop Capital lowered shares of Reddit (NYSE:RDDT) from a buy rating to a hold rating in a report issued on Monday morning, Marketbeat reports. The firm currently has $100.00 target price on the stock.

Several other analysts also recently weighed in on the company. DA Davidson decreased their target price on Reddit from $200.00 to $185.00 and set a “buy” rating for the company in a research report on Friday, September 18th. Zacks Research upgraded shares of Reddit from a “hold” rating to a “strong-buy” rating in a report on Tuesday, October 27th. Roth Capital reaffirmed a “neutral” rating and issued a $145.00 price target on shares of Reddit in a research note on Monday, August 3rd. Wedbush reduced their price target on shares of Reddit from $221.00 to $150.00 and set an “outperform” rating on the stock in a research note on Friday, October 30th. Finally, Citigroup lowered shares of Reddit from a “market outperform” rating to a “market perform” rating in a report on Friday, October 30th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and fifteen have given a Hold rating to the stock. According to MarketBeat, Reddit presently has a consensus rating of “Moderate Buy” and an average target price of $180.91.

Reddit Stock Performance

Shares of RDDT stock opened at $101.83 on Monday. The stock has a 50 day moving average price of $146.78 and a 200 day moving average price of $158.00. Reddit has a 52-week low of $89.28 and a 52-week high of $263.50. The firm has a market capitalization of $19.59 billion, a P/E ratio of 20.78, a P/E/G ratio of 0.39 and a beta of 2.28.

Reddit (NYSE:RDDT) last announced its quarterly earnings data on Thursday, October 29th. The company reported $1.40 EPS for the quarter, beating the consensus estimate 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 return on equity of 30.57% and a net margin of 32.10%. Reddit’s quarterly revenue was up 53.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.80 EPS. As a group, sell-side analysts forecast that Reddit will post 5.42 EPS for the current year.

Insiders Place Their Bets

In related news, COO Jennifer L. Wong sold 75,000 shares of the business’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $178.55, for a total value of $13,391,250.00. Following the completion of the transaction, the chief operating officer owned 1,050,339 shares of the company’s stock, valued at $187,538,028.45. The trade was a 6.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert A. Sauerberg sold 5,128 shares of the business’s stock in a transaction 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 directly owned 27,087 shares of the company’s stock, valued at approximately $4,331,753.04. The trade was a 15.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 288,052 shares of company stock worth $46,878,483 in the last ninety days. 28.48% of the stock is owned by company insiders.

Institutional Investors Weigh In On Reddit

Hedge funds and other institutional investors have recently bought and sold shares of the company. Evansbrook LLC lifted its holdings in shares of Reddit by 2.2% during the 1st quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock valued at $368,000 after purchasing an additional 59 shares during the last quarter. Signaturefd LLC boosted its holdings in shares of Reddit by 7.6% in the 2nd 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 raised 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 in the last quarter. Versant Capital Management Inc raised its position in shares of Reddit by 31.1% in the second quarter. Versant Capital Management Inc now owns 291 shares of the company’s stock worth $51,000 after acquiring an additional 69 shares during the period. Finally, Central Pacific Bank Trust Division raised its position in Reddit by 8.6% during the third quarter. Central Pacific Bank Trust Division now owns 885 shares of the company’s stock worth $126,000 after acquiring an additional 70 shares during the period.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s latest reported quarter showed revenue up 53% year over year, with both revenue and earnings per share above consensus. Strong ad growth and user engagement support the longer-term case. Zacks article
• Positive Sentiment: The company is testing ads in search results, creating another potential way to monetize existing users as it adapts to changes in how people find Reddit content. TechCrunch article
• Neutral Sentiment: KeyCorp raised its 2026 EPS estimate to $5.41 from $4.90, but cut its 2027 estimate to $6.39 from $6.92 and its 2028 estimate to $7.06 from $8.73. Its Sector Weight rating signals a mixed outlook. MarketBeat analyst estimates
• Neutral Sentiment: Reddit and a rights group are challenging Australia’s under-16 social-media ban in court. The case raises potential regulatory and access questions, but its business impact is uncertain. Sky News article
• Negative Sentiment: Investors remain concerned about falling search traffic and weaker-than-expected revenue guidance, which prompted a steep post-quarter selloff and renewed questions about growth. Yahoo Finance article
• Negative Sentiment: Loop Capital and Evercore lowered their ratings, adding to pressure on sentiment amid concerns about growth and valuation. Loop Capital rating article Evercore rating article

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.