Wells Fargo & Company Has Lowered Expectations for Reddit (NYSE:RDDT) Stock Price

Reddit (NYSE:RDDT) had its price target dropped by equities research analysts at Wells Fargo & Company from $142.00 to $110.00 in a research note issued on Friday, Benzinga reports. The firm presently has an “equal weight” rating on the stock. Wells Fargo & Company‘s price target suggests a potential upside of 21.96% from the stock’s previous close.

Several other analysts also recently commented on the stock. Zacks Research raised shares of Reddit from a “hold” rating to a “strong-buy” rating in a report on Tuesday. Oppenheimer lowered shares of Reddit from an “outperform” rating to a “market perform” rating in a report on Friday. Wedbush cut their price target on Reddit from $221.00 to $150.00 and set an “outperform” rating on the stock in a research report on Friday. Piper Sandler reiterated an “overweight” rating and set a $195.00 price objective (down from $215.00) on shares of Reddit in a research note on Friday, July 31st. Finally, Morgan Stanley lowered their target price on Reddit from $240.00 to $210.00 and set an “overweight” rating on the stock in a research note on Friday, August 21st. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and thirteen have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $200.16.

Reddit Stock Performance

RDDT stock traded down $39.41 during midday trading on Friday, reaching $90.19. The stock had a trading volume of 25,411,838 shares, compared to its average volume of 5,483,052. The stock has a market cap of $17.35 billion, a PE ratio of 21.06, a P/E/G ratio of 0.62 and a beta of 2.05. The firm has a fifty day simple moving average of $151.54 and a two-hundred day simple moving average of $161.02. Reddit has a 52-week low of $89.28 and a 52-week high of $263.50.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, October 29th. The company reported $1.40 EPS for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. The firm had revenue of $894.96 million during the quarter, compared to the consensus estimate of $874.91 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%. The company’s revenue was up 53.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.80 earnings per share. On average, sell-side analysts predict that Reddit will post 5.28 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Robert Sauerberg sold 5,128 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total transaction of $820,069.76. Following the sale, the director directly owned 27,087 shares of the company’s stock, valued at $4,331,753.04. This represents a 15.92% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Jennifer Wong sold 75,000 shares of the firm’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $178.55, for a total value of $13,391,250.00. Following the sale, the chief operating officer owned 1,050,339 shares in the company, valued at $187,538,028.45. This trade represents a 6.66% 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 quarter, insiders sold 306,052 shares of company stock worth $49,754,523. Company insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

A number of institutional investors and hedge funds have recently made changes to their positions in RDDT. Sunbelt Securities Inc. lifted its position in shares of Reddit by 87.5% during 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 in the last quarter. EverSource Wealth Advisors LLC grew its stake in Reddit by 48.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after acquiring an additional 64 shares during the period. Beacon Investment Advisory Services Inc. purchased a new stake in Reddit in the 2nd quarter worth $35,000. Ascentis Independent Advisors purchased a new stake in Reddit in the 1st quarter worth $30,000. Finally, Hager Investment Management Services LLC increased 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 worth $49,000 after acquiring an additional 235 shares in the last quarter.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit exceeded third-quarter expectations, reporting adjusted EPS of $1.40 versus the $1.33 consensus and revenue of approximately $895 million versus $875 million expected. Revenue increased 53% year over year, while net income also grew substantially. Reddit Reports Third Quarter 2026 Results
• Positive Sentiment: Truist Financial and B. Riley maintained “buy” ratings despite lowering their price targets to $210 and $190, respectively, suggesting they still see significant long-term upside if Reddit can stabilize traffic and user growth. Reddit Analysts Slash Their Forecasts Following Q3 Earnings
• Neutral Sentiment: Reddit plans to test a primarily logged-in experience to reduce scraping and potentially improve engagement and monetization. However, requiring an account to view content could further reduce casual and search-driven visitors before the benefits materialize. Reddit Search Traffic and Visitor Sign-ins
• Negative Sentiment: Management issued weaker-than-expected fourth-quarter guidance and warned that daily active unique visitors could fall by a low-double-digit percentage from roughly 130 million. Declining Google referrals, increasingly driven by AI-generated search answers, are reducing Reddit’s audience funnel.
• Negative Sentiment: The audience mix is also becoming less attractive: U.S. daily users declined while international users increased, and U.S. users generate substantially more advertising revenue than international users. Reddit Earns More From Fewer U.S. Users
• Negative Sentiment: Several analysts became more cautious: Oppenheimer and Citizens JMP downgraded Reddit to “market perform,” while Bernstein lowered its target to $120 and Cantor Fitzgerald cut its target to $120 with a neutral rating. The broader technology selloff and concerns about AI’s impact on internet traffic added further pressure. Reddit Stock Guidance and DAU Decline

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.