Reddit (NYSE:RDDT) Stock Gets Price Target Reduction from JPMorgan Chase & Co.

Reddit (NYSE:RDDT) had its target price decreased by JPMorgan Chase & Co. from $185.00 to $150.00 in a research report sent to investors on Friday,Benzinga reports. JPMorgan Chase & Co. currently has a neutral rating on the stock.

RDDT has been the subject of several other research reports. Needham & Company LLC lowered their target price on shares of Reddit from $300.00 to $150.00 and set a “buy” rating for the company in a research note on Friday. UBS Group reissued a “buy” rating on shares of Reddit in a research report on Friday. Weiss Ratings restated a “hold (c)” rating on shares of Reddit in a report on Wednesday, August 5th. Wall Street Zen downgraded Reddit from a “buy” rating to a “hold” rating in a report on Sunday, August 9th. Finally, Citigroup downgraded shares of Reddit from a “market outperform” rating to a “market perform” rating in a research report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and fourteen have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $186.65.

Reddit Stock Up 0.0%

RDDT 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’s 50-day simple moving average is $150.37 and its 200-day simple moving average is $160.26. The firm has a market cap of $17.65 billion, a P/E ratio of 18.72, a PEG ratio of 0.42 and a beta of 2.05.

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

Insider Transactions at Reddit

In other Reddit news, Director Robert Sauerberg sold 5,128 shares of Reddit stock in a transaction that occurred 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 in the company, valued at $4,331,753.04. The trade was a 15.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Steve Huffman sold 18,000 shares of the firm’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 completion of the sale, 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. 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. In the last three months, insiders have sold 306,052 shares of company stock worth $49,754,523. 28.48% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Reddit

A number of large investors have recently added to or reduced their stakes in the stock. State Street Corp increased its holdings in Reddit by 8.7% in the second quarter. State Street Corp now owns 2,979,587 shares of the company’s stock valued at $517,197,000 after purchasing an additional 237,523 shares during the last quarter. Wellington Management Group LLP lifted its position in 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 grew its stake in shares of Reddit by 5.3% in the first quarter. DSM Capital Partners LLC now owns 848,206 shares of the company’s stock valued at $114,211,000 after acquiring an additional 42,808 shares in the last quarter. Robeco Institutional Asset Management B.V. increased its position in shares of Reddit by 74.6% in the third quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock worth $115,243,000 after purchasing an additional 345,735 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in Reddit by 8.9% in the second 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 buying an additional 39,540 shares in the last quarter.

Key Stories Impacting Reddit

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.