Reddit (NYSE:RDDT) Rating Lowered to “Market Perform” at Citizens Jmp

Reddit (NYSE:RDDT) was downgraded by analysts at Citizens Jmp from a “market outperform” rating to a “market perform” rating in a report issued on Friday, MarketBeat.com reports.

A number of other research analysts also recently commented on RDDT. Needham & Company LLC reiterated a “buy” rating and set a $300.00 target price on shares of Reddit in a research report on Friday, October 9th. Piper Sandler reissued an “overweight” rating and issued a $195.00 price target (down from $215.00) on shares of Reddit in a report on Friday, July 31st. Morgan Stanley reduced their price target on Reddit from $240.00 to $210.00 and set an “overweight” rating for the company in a research report on Friday, August 21st. Robert W. Baird set a $185.00 price target on Reddit in a research note on Friday, July 31st. Finally, Raymond James Financial restated a “strong-buy” rating and issued a $205.00 target price on shares of Reddit in a research report on Monday, August 17th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and thirteen have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $210.10.

Reddit Trading Down 3.3%

Shares of Reddit stock opened at $130.29 on Friday. Reddit has a 12 month low of $119.27 and a 12 month high of $263.50. The business has a fifty day simple moving average of $151.54 and a two-hundred day simple moving average of $161.02. The firm has a market capitalization of $25.07 billion, a P/E ratio of 30.30, a P/E/G ratio of 0.62 and a beta of 2.05.

Reddit (NYSE:RDDT) last issued its earnings results on Thursday, October 29th. The company reported $1.40 earnings per share 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 analyst estimates of $874.91 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%. Reddit’s revenue was up 53.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.80 EPS. Analysts predict that Reddit will post 5.28 earnings per share for the current year.

Insider Transactions at Reddit

In other news, CEO Steve Huffman sold 18,000 shares of the company’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $178.16, for a total transaction of $3,206,880.00. Following the transaction, the chief executive officer owned 373,814 shares in the company, valued at approximately $66,598,702.24. This represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 75,000 shares of Reddit stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $178.55, for a total transaction of $13,391,250.00. Following the transaction, the chief operating officer owned 1,050,339 shares of the company’s stock, valued at $187,538,028.45. This represents a 6.66% 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 ninety days, insiders have sold 306,052 shares of company stock valued at $49,754,523. 28.48% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Wellington Management Group LLP lifted its holdings in Reddit by 21.8% during the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock valued at $271,572,000 after purchasing an additional 280,030 shares in the last quarter. State Street Corp boosted its stake 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 last quarter. Moore Capital Management LP increased its holdings in Reddit by 611.4% during the 2nd quarter. Moore Capital Management LP now owns 12,577 shares of the company’s stock worth $2,183,000 after purchasing an additional 10,809 shares during the last quarter. Light Street Capital Management LLC acquired a new position in Reddit in the 2nd quarter worth about $31,678,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab raised its position in Reddit by 102.3% in the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 19,120 shares of the company’s stock valued at $3,319,000 after purchasing an additional 9,670 shares during the last quarter.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported third-quarter adjusted earnings of $1.40 per share and revenue of approximately $895 million, exceeding analyst estimates of $1.33 and $875 million, respectively. Revenue increased 53% year over year, while earnings rose from $0.80 a year earlier. Reddit Inc. Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: The strong quarterly performance demonstrates continued monetization progress, particularly in advertising, and provides some support for Reddit’s long-term growth story. Reddit Reports Third Quarter 2026 Results
• Neutral Sentiment: Reddit said it may test a primarily logged-in experience to reduce data scraping and address declining referrals from Google search. The strategy could improve user registration and monetization over time, but it risks reducing traffic from casual and logged-out visitors in the near term. Reddit Posts Third-Quarter Earnings and Plans Login Requirement Test
• Negative Sentiment: Fourth-quarter guidance was weaker than expected, overshadowing the earnings and revenue beats. Investors are also concerned about slowing daily-user growth, declining Google search traffic, and the impact of AI-powered search on Reddit’s ability to attract visitors. Reddit Shares Tumble on Weak Guidance
• Negative Sentiment: Analysts responded by cutting their forecasts and price targets. Cantor Fitzgerald lowered its target from $170 to $120, while Bernstein reduced its target from $180 to $120; Oppenheimer and Citizens JMP downgraded the shares to “market perform.” These actions signal reduced confidence in Reddit’s near-term growth trajectory. Reddit Analysts Slash Their Forecasts Following Q3 Earnings

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.