Reddit Inc. (NYSE:RDDT) Stock Has Average Target Price of $219.29 According to Brokerages

Shares of Reddit Inc. (NYSE:RDDT) have been assigned an average recommendation of “Moderate Buy” from the twenty-nine analysts that are covering the stock, Marketbeat reports. Twelve equities research analysts have rated the stock with a hold recommendation, fifteen have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1 year target price among analysts that have covered the stock in the last year is $197.61.

A number of analysts have recently issued reports on the stock. KeyCorp lowered shares of Reddit from an “overweight” rating to a “sector weight” rating in a research note on Friday. Morgan Stanley reduced their price target on shares of Reddit from $240.00 to $210.00 and set an “overweight” rating on the stock in a research note on Friday, August 21st. B. Riley Financial decreased their price objective on shares of Reddit from $270.00 to $190.00 and set a “buy” rating for the company in a report on Friday. Cantor Fitzgerald lowered their price objective on shares of Reddit from $170.00 to $120.00 and set a “neutral” rating for the company in a research report on Friday. Finally, Jefferies Financial Group set a $250.00 price objective on shares of Reddit in a research report on Friday, July 10th.

Key Reddit News

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

Insiders Place Their Bets

In other Reddit news, Director Robert Sauerberg sold 5,128 shares of the firm’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total transaction of $820,069.76. Following the transaction, the director directly owned 27,087 shares in the company, valued at $4,331,753.04. This trade represents a 15.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, COO Jennifer Wong sold 75,000 shares of the firm’s stock in a transaction on 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 transaction, the chief operating officer owned 1,050,339 shares in the company, valued at approximately $187,538,028.45. This represents a 6.66% 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 have 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.

Hedge Funds Weigh In On Reddit

A number of large investors have recently added to or reduced their stakes in the company. State Street Corp lifted its position in Reddit by 8.7% during the second quarter. State Street Corp now owns 2,979,587 shares of the company’s stock valued at $517,197,000 after acquiring an additional 237,523 shares during the last quarter. Wellington Management Group LLP grew its stake in Reddit by 21.8% during the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock worth $271,572,000 after buying an additional 280,030 shares during the last quarter. Robeco Institutional Asset Management B.V. increased its holdings in shares of Reddit by 74.6% during the third 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 stake in Reddit by 5.3% during the 1st quarter. DSM Capital Partners LLC now owns 848,206 shares of the company’s stock valued at $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 position in shares of Reddit by 8.9% in 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 valued at $83,647,000 after acquiring an additional 39,540 shares during the period.

Reddit Stock Down 29.2%

RDDT opened at $91.74 on Tuesday. The business has a fifty day moving average of $150.37 and a 200 day moving average of $160.26. Reddit has a 52-week low of $89.28 and a 52-week high of $263.50. The stock 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 released its earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. Reddit had a return on equity of 31.67% and a net margin of 32.10%. The business had revenue of $894.96 million for the quarter, compared to analyst estimates of $874.91 million. During the same quarter last year, the firm posted $0.80 earnings per share. The business’s revenue was up 53.0% compared to the same quarter last year. Equities analysts anticipate that Reddit will post 5.28 EPS for the current fiscal year.

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.