JPMorgan Chase & Co. Has Lowered Expectations for Reddit (NYSE:RDDT) Stock Price

Reddit (NYSE:RDDT) had its price objective reduced by equities research analysts at JPMorgan Chase & Co. from $185.00 to $150.00 in a report released on Friday, Benzinga reports. The firm presently has a “neutral” rating on the stock. JPMorgan Chase & Co.‘s price objective points to a potential upside of 63.51% from the stock’s previous close.

A number of other equities analysts also recently commented on the stock. Sanford C. Bernstein reiterated a “market perform” rating and set a $120.00 target price on shares of Reddit in a research note on Friday. Wedbush decreased their price target on Reddit from $221.00 to $150.00 and set an “outperform” rating for the company in a report on Friday. Robert W. Baird set a $185.00 price target on Reddit in a report on Friday, July 31st. Raymond James Financial reissued a “strong-buy” rating and set a $205.00 target price on shares of Reddit in a research report on Monday, August 17th. Finally, Morgan Stanley decreased their target price on Reddit from $240.00 to $210.00 and set an “overweight” rating for the company in a research note on Friday, August 21st. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and fourteen have issued a Hold rating to the stock. Based on data from MarketBeat, Reddit currently has a consensus rating of “Moderate Buy” and an average target price of $186.65.

Reddit Stock Up 0.0%

Shares of Reddit stock opened at $91.74 on Friday. Reddit has a 52-week low of $89.28 and a 52-week high of $263.50. The company has a market capitalization of $17.65 billion, a P/E ratio of 18.72, a P/E/G ratio of 0.42 and a beta of 2.05. The company has a 50 day moving average of $150.37 and a 200 day moving average of $160.26.

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

Insider Activity at Reddit

In other news, CEO Steve Huffman sold 17,308 shares of the stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $158.57, for a total value of $2,744,529.56. Following the completion of the sale, the chief executive officer directly owned 336,432 shares of the company’s stock, valued at approximately $53,348,022.24. This represents a 4.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 60,000 shares of the stock in a transaction on Wednesday, October 14th. The stock was sold at an average price of $150.55, for a total transaction of $9,033,000.00. Following the sale, the chief operating officer owned 1,012,226 shares of the company’s stock, valued at approximately $152,390,624.30. This represents a 5.60% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 306,052 shares of company stock valued at $49,754,523 over the last ninety days. Insiders own 28.48% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Sunbelt Securities Inc. increased its stake in Reddit by 87.5% in the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock valued at $26,000 after buying an additional 91 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in shares of 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 acquiring an additional 64 shares in the last quarter. Beacon Investment Advisory Services Inc. acquired a new stake in Reddit in the second quarter valued at about $35,000. Ascentis Independent Advisors purchased a new stake in Reddit in the 1st quarter valued at approximately $30,000. Finally, Hager Investment Management Services LLC boosted its holdings in Reddit by 522.2% in the 2nd quarter. Hager Investment Management Services LLC now owns 280 shares of the company’s stock valued at $49,000 after purchasing an additional 235 shares in the last quarter.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Despite weaker U.S. daily active-user trends, Reddit’s revenue increased 53% year over year and advertising revenue per user rose substantially, suggesting strong engagement and advertiser monetization. A post-selloff analysis argued that the market’s reaction may be excessive. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Reddit’s revenue growth has overtaken The Trade Desk’s in a recent comparison, highlighting the company’s continued expansion and improving monetization potential. Reddit vs. The Trade Desk: One’s Revenue Growth Overtook the Other’s Lead
• Neutral Sentiment: RBC Capital reaffirmed its Hold rating, indicating neither a material improvement nor deterioration in its investment view. RBC Capital Reaffirms Their Hold Rating on Reddit
• Negative Sentiment: Investors are concerned that Google’s AI search changes are reducing Reddit’s unpaid search traffic. The company’s move toward a logged-in-only experience could protect monetization but may limit user growth and raise customer-acquisition costs. Reddit Stock Plunges After Google AI Cuts U.S. Traffic
• Negative Sentiment: Several firms reduced expectations: Oppenheimer and Citizens JMP downgraded Reddit to Market Perform, while Citigroup, Cantor Fitzgerald, Truist Financial, B. Riley, Wedbush and Wells Fargo cut their price targets or forecasts. Analyst Rating and Target Changes
• Negative Sentiment: The latest selloff followed quarterly results that beat revenue and earnings estimates but were overshadowed by an unfavorable user outlook, reinforcing concerns about traffic growth and future monetization. Reddit Stock Sinks as Q3 Results Clash With User 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.