Reddit (NYSE:RDDT) Stock Gets Price Target Trim from Deutsche Bank Aktiengesellschaft

Reddit (NYSE:RDDT) had its price objective decreased by Deutsche Bank Aktiengesellschaft from $200.00 to $165.00 in a report issued on Friday morning. Deutsche Bank Aktiengesellschaft currently has a buy rating on the stock.

Several other analysts have also issued reports on the company. Zacks Research raised Reddit from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 27th. Wedbush decreased 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. Wells Fargo & Company lowered their price objective on shares of Reddit from $142.00 to $110.00 and set an “equal weight” rating for the company in a report on Friday. Loop Capital cut shares of Reddit from a “buy” rating to a “hold” rating and set a $100.00 price objective for the company. in a research note on Monday. Finally, B. Riley Financial cut their price objective on shares of Reddit from $270.00 to $190.00 and set a “buy” rating for the company in a research note on Friday. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and fifteen have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $180.91.

Reddit Price Performance

RDDT stock traded down $0.85 during mid-day trading on Friday, hitting $90.88. 9,154,382 shares of the stock were exchanged, compared to its average volume of 5,543,015. The business has a fifty day moving average price of $150.37 and a 200 day moving average price of $160.26. Reddit has a 12 month low of $89.28 and a 12 month high of $263.50. The stock has a market capitalization of $17.49 billion, a price-to-earnings ratio of 18.64, a PEG ratio of 0.42 and a beta of 2.05.

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 firm had revenue of $894.96 million for the quarter, compared to analyst estimates of $874.91 million. Reddit had a return on equity of 30.57% and a net margin of 32.10%. The company’s revenue was up 53.0% on a year-over-year basis. During the same period in the prior year, the company earned $0.80 EPS. As a group, equities analysts forecast that Reddit will post 5.28 EPS for the current fiscal year.

Insider Activity at Reddit

In related news, COO Jennifer Wong sold 60,000 shares of the firm’s stock in a transaction that occurred 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 transaction, the chief operating officer directly owned 1,012,226 shares in the company, valued at $152,390,624.30. This trade represents a 5.60% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of the firm’s 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 transaction, the director owned 27,087 shares in the company, valued at approximately $4,331,753.04. The trade was a 15.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 306,052 shares of company stock worth $49,754,523 in the last ninety days. 28.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Senvest Management LLC bought a new stake in Reddit during the 1st quarter valued at $48,392,000. Robeco Institutional Asset Management B.V. boosted its position in Reddit by 74.6% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock valued at $115,243,000 after buying an additional 345,735 shares during the period. Wellington Management Group LLP grew its holdings in Reddit by 21.8% in the 2nd 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. Styrax Capital LP bought a new stake in Reddit in the 2nd quarter worth $43,395,000. Finally, State Street Corp grew its holdings in Reddit by 8.7% in the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company’s stock worth $517,197,000 after acquiring an additional 237,523 shares during the last quarter.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s latest quarterly results showed substantial operating momentum: revenue rose 53% year over year to approximately $895 million, while earnings per share exceeded analyst expectations. Advertising engagement and higher average revenue per user could support the company’s long-term monetization outlook. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Some investors view the decline as excessive relative to Reddit’s revenue growth and profitability, arguing that fears over Google’s AI search changes may already be reflected in the valuation. Reddit Stock Crashes Again: Is the Stock a Buy on the Dip or a Value Trap?
• Neutral Sentiment: A valuation comparison with Spotify highlights Reddit as a potential value opportunity, but the conclusion depends on whether investors prioritize Reddit’s faster growth or Spotify’s more established user and revenue trends. RDDT vs. SPOT: Which Stock Is the Better Value Option?
• Negative Sentiment: The primary pressure is a worsening user-growth outlook. Google’s AI search changes appear to be reducing traffic to Reddit, particularly in the U.S., while management’s push toward logged-in users could protect monetization but make it harder and more expensive to attract new users. Reddit Stock Plunges After Google AI Cuts U.S. Traffic
• Negative Sentiment: Several firms reduced their ratings or price targets, including JPMorgan, Evercore, Loop Capital, Oppenheimer, Citigroup, Cantor Fitzgerald, Truist, Wells Fargo and Wedbush. Although many revised targets remain above the current market level, the broad analyst caution is weighing on confidence in RDDT’s near-term outlook.

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.