Reddit (NYSE:RDDT) Price Target Lowered to $221.00 at Wedbush

Reddit (NYSE:RDDT) had its target price reduced by Wedbush from $250.00 to $221.00 in a report published on Friday, MarketBeat reports. Wedbush currently has an outperform rating on the stock.

RDDT has been the topic of a number of other research reports. Bank of America cut their price target on shares of Reddit from $205.00 to $175.00 and set a “neutral” rating on the stock in a report on Thursday, April 2nd. Jefferies Financial Group set a $250.00 price objective on shares of Reddit in a research note on Friday, July 10th. DA Davidson reiterated a “buy” rating and set a $200.00 price objective on shares of Reddit in a research report on Thursday, July 23rd. Raymond James Financial set a $180.00 target price on shares of Reddit and gave the company a “market perform” rating in a research note on Friday, May 1st. Finally, Zacks Research upgraded Reddit from a “hold” rating to a “strong-buy” rating in a report on Monday, July 27th. Two analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $223.16.

Reddit Trading Down 21.0%

NYSE RDDT opened at $140.67 on Friday. Reddit has a 1 year low of $119.27 and a 1 year high of $282.95. The company has a market cap of $27.08 billion, a PE ratio of 32.71 and a beta of 1.93. The stock’s 50-day moving average price is $176.72 and its two-hundred day moving average price is $164.92.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping the consensus estimate of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.97%. The company had revenue of $804.91 million during the quarter, compared to analysts’ expectations of $731.00 million. During the same period last year, the company posted $0.45 earnings per share. The business’s revenue for the quarter was up 61.0% on a year-over-year basis. Research analysts forecast that Reddit will post 4.85 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $173.13, for a total transaction of $3,116,340.00. Following the transaction, the chief executive officer directly owned 373,814 shares of the company’s stock, valued at approximately $64,718,417.82. The trade was a 4.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,166 shares of the business’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $176.94, for a total transaction of $6,930,032.04. Following the transaction, the chief operating officer directly owned 1,050,339 shares in the company, valued at $185,846,982.66. The trade was a 3.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 169,141 shares of company stock worth $28,680,845. 28.48% of the stock is owned by company insiders.

Institutional Investors Weigh In On Reddit

A number of institutional investors have recently modified their holdings of the stock. Sunbelt Securities Inc. increased its stake 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 acquiring an additional 91 shares during the last quarter. Ascentis Independent Advisors acquired a new stake in Reddit during the first quarter valued at $30,000. LOM Asset Management Ltd acquired a new stake in Reddit during the fourth quarter valued at $33,000. EverSource Wealth Advisors LLC grew its stake in Reddit by 48.1% in the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after purchasing an additional 64 shares in the last quarter. Finally, Beacon Investment Advisory Services Inc. purchased a new position in Reddit in the second quarter valued at about $35,000.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported second-quarter revenue of approximately $805 million, up 61% year over year, while earnings of $1.25 per share exceeded analysts’ estimates. Advertising demand, higher pricing and user growth supported stronger monetization. Reddit crushes revenue and earnings estimates, issues strong guidance
• Positive Sentiment: Management forecast third-quarter revenue of $860 million to $870 million, above Wall Street’s approximately $830 million expectation. AI-powered advertising tools, product upgrades and continued ad growth are expected to support momentum. Reddit expects revenue above estimates as AI tools attract advertisers
• Positive Sentiment: Analyst sentiment remains mixed but includes bullish views: Truist raised its price target to $275 and maintained a buy rating, while Wedbush kept an outperform rating with a $221 target. KeyCorp also upgraded Reddit to “strong buy.” Reddit analyst actions
• Neutral Sentiment: Reddit is testing a “video Reddit” experience that could let users watch videos and listen to posts in the background, potentially increasing engagement and creating new advertising opportunities over time. Reddit is testing a new way to watch and listen to its viral posts
• Negative Sentiment: The primary selloff trigger was management’s warning that search referrals have become “choppy” or volatile. Investors fear Google’s AI-generated search summaries and other AI search tools could reduce traffic to Reddit, weakening future user growth, engagement and advertising monetization. Reddit Stock Plunges on Choppy Search Referrals Warning
• Negative Sentiment: Investors were also disappointed by slower U.S. daily-user growth and the lack of announced new AI licensing deals, raising questions about Reddit’s longer-term traffic outlook. JPMorgan and Cantor Fitzgerald responded by lowering their price targets to $185 and $170, respectively, while assigning neutral ratings. Reddit earnings: why are investors concerned despite solid headline numbers

Reddit Company Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called “subreddits,” each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.