Reddit (NYSE:RDDT) Stock Price Target Lowered at Cantor Fitzgerald

Reddit (NYSE:RDDT) had its target price cut by Cantor Fitzgerald from $170.00 to $120.00 in a research note released on Friday morning, MarketBeat Ratings reports. They currently have a neutral rating on the stock.

Other research analysts have also issued reports about the company. Zacks Research upgraded Reddit from a “hold” rating to a “strong-buy” rating in a research note on Tuesday. Needham & Company LLC reissued a “buy” rating and issued a $300.00 target price on shares of Reddit in a report on Friday, October 9th. Raymond James Financial reiterated a “strong-buy” rating and issued a $205.00 price objective on shares of Reddit in a research report on Monday, August 17th. Deutsche Bank Aktiengesellschaft set a $200.00 target price on Reddit in a report on Friday, July 31st. Finally, Sanford C. Bernstein reiterated a “market perform” rating and set a $180.00 price target on shares of Reddit in a research report on Friday, July 31st. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $197.61.

Reddit Trading Down 29.2%

Shares of NYSE RDDT opened at $91.74 on Friday. The business has a fifty day simple moving average of $150.37 and a 200 day simple moving average of $160.26. The firm has a market capitalization of $17.65 billion, a price-to-earnings ratio of 18.72, a PEG ratio of 0.60 and a beta of 2.05. Reddit has a one year low of $89.28 and a one year high of $263.50.

Reddit (NYSE:RDDT) last issued its earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.07. The business had revenue of $894.96 million for the quarter, compared to analyst estimates of $874.91 million. Reddit had a net margin of 32.10% and a return on equity of 31.67%. The firm’s revenue was up 53.0% on a year-over-year basis. During the same period in the previous year, the business earned $0.80 EPS. On average, research analysts anticipate that Reddit will post 5.28 earnings per share for the current fiscal year.

Insider Buying and Selling at Reddit

In other Reddit news, COO Jennifer Wong sold 75,000 shares of the company’s stock in a transaction on 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 completion of the sale, the chief operating officer owned 1,050,339 shares in the company, valued at approximately $187,538,028.45. The trade was a 6.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Huffman sold 18,000 shares of the stock in a transaction 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 transaction, the chief executive officer directly owned 373,814 shares in the company, valued at approximately $66,598,702.24. This trade represents a 4.59% decrease in their position. 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 currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RDDT. State Street Corp grew its position in shares of Reddit by 8.7% in the 2nd 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 period. Wellington Management Group LLP raised its holdings in shares of 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 period. Robeco Institutional Asset Management B.V. lifted its position in Reddit by 74.6% in 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 acquiring an additional 345,735 shares in the last quarter. DSM Capital Partners LLC increased its holdings in Reddit by 5.3% during the 1st quarter. DSM Capital Partners LLC now owns 848,206 shares of the company’s stock worth $114,211,000 after purchasing an additional 42,808 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Reddit by 8.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 481,893 shares of the company’s stock worth $83,647,000 after purchasing an additional 39,540 shares in the last quarter.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported third-quarter revenue of approximately $895 million, up 53% year over year, and earnings of $1.40 per share, exceeding analyst expectations. Advertising revenue increased 54%, while improved monetization and first-week app retention—up more than 50% year over year—provided evidence of continued platform engagement. Reddit Q3 Earnings Beat on Ad Growth and Strong Monetization
• Positive Sentiment: Several analysts retained constructive views despite reducing their targets. Citigroup, Truist Financial, B. Riley and Wedbush still rated RDDT Buy or Outperform, with targets above the current trading level, suggesting potential long-term recovery if user engagement and monetization improve. Reddit Analysts Slash Their Forecasts Following Q3 Earnings
• Neutral Sentiment: Reddit plans to test a primarily logged-in experience in international markets to reduce data scraping, strengthen data protection and limit its reliance on search referrals. Management is also responding to the growing impact of Google AI search features on website traffic. Reddit Search Traffic Declines and Visitor Sign-In Plans
• Negative Sentiment: Management’s outlook was the main catalyst for the selloff. Search traffic was described as meaningfully lower, and daily active unique visitors could decline by a low double-digit percentage in the fourth quarter if Google referrals continue weakening. The logged-in-only strategy could further reduce casual and logged-out users before improving engagement or monetization.
• Negative Sentiment: Analysts broadly cut price targets, including Wells Fargo to $110, Cantor Fitzgerald to $120 and Bernstein to $120; Oppenheimer and Citizens JMP downgraded the stock to market perform. Investors are concerned that international user growth is less valuable than U.S. growth, while Meta and Google remain powerful advertising competitors.
• Negative Sentiment: Levi & Korsinsky and Block & Leviton announced investigations into whether Reddit adequately disclosed the risks associated with its logged-in-only transition and search-traffic exposure, adding legal and reputational uncertainty. Reddit Investigation Notice

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.