Reddit (NYSE:RDDT) Price Target Cut to $140.00 by Analysts at The Goldman Sachs Group

Reddit (NYSE:RDDT) had its target price dropped by equities researchers at The Goldman Sachs Group from $215.00 to $140.00 in a note issued to investors on Friday. The Goldman Sachs Group‘s price target indicates a potential upside of 52.84% from the company’s current price.

RDDT has been the subject of a number of other reports. Bank of America reissued a “neutral” rating and issued a $135.00 target price (down from $190.00) on shares of Reddit in a research note on Friday. Wall Street Zen cut Reddit from a “buy” rating to a “hold” rating in a report on Sunday, August 9th. Truist Financial decreased their price objective on Reddit from $275.00 to $210.00 and set a “buy” rating for the company in a research report on Friday. Evercore cut Reddit from an “outperform” rating to an “in-line” rating and set a $120.00 target price for the company. in a research note on Monday. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $120.00 price target (down from $180.00) on shares of Reddit in a research note on Friday. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and fifteen have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $180.91.

Reddit Price Performance

Shares of NYSE RDDT traded down $0.13 during midday trading on Friday, reaching $91.60. 8,786,213 shares of the stock were exchanged, compared to its average volume of 5,539,729. Reddit has a 12 month low of $89.28 and a 12 month high of $263.50. The company has a market capitalization of $17.62 billion, a price-to-earnings ratio of 18.65, a P/E/G ratio of 0.42 and a beta of 2.05. The business has a 50-day simple moving average of $150.37 and a two-hundred day simple moving average of $160.26.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, October 29th. The company reported $1.40 EPS for the quarter, beating analysts’ consensus estimates of $1.33 by $0.07. The business had revenue of $894.96 million during the quarter, compared to analysts’ expectations of $874.91 million. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The firm’s quarterly revenue was up 53.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.80 EPS. Equities research analysts expect that Reddit will post 5.28 earnings per share for the current fiscal year.

Insider Buying and Selling at Reddit

In related news, COO Jennifer L. Wong sold 60,000 shares of the stock in a transaction dated 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 completion of the transaction, the chief operating officer directly owned 1,012,226 shares in the company, valued at approximately $152,390,624.30. This trade represents a 5.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert A. Sauerberg sold 5,128 shares of the stock in a transaction dated 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 of the company’s stock, valued at approximately $4,331,753.04. The trade was a 15.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 306,052 shares of company stock valued at $49,754,523 in the last 90 days. 28.48% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Reddit

Hedge funds have recently made changes to their positions in the business. Evansbrook LLC raised its holdings in shares of Reddit by 2.2% in the first quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock valued at $368,000 after purchasing an additional 59 shares during the last quarter. Signaturefd LLC boosted its holdings in Reddit by 7.6% during the second quarter. Signaturefd LLC now owns 878 shares of the company’s stock worth $152,000 after purchasing an additional 62 shares during the last quarter. EverSource Wealth Advisors LLC boosted its holdings in Reddit by 48.1% during the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after purchasing an additional 64 shares during the last quarter. Versant Capital Management Inc grew its position in Reddit by 31.1% in the second quarter. Versant Capital Management Inc now owns 291 shares of the company’s stock valued at $51,000 after purchasing an additional 69 shares in the last quarter. Finally, Central Pacific Bank Trust Division grew its position in Reddit by 8.6% in the third quarter. Central Pacific Bank Trust Division now owns 885 shares of the company’s stock valued at $126,000 after purchasing an additional 70 shares in the last quarter.

Reddit News Roundup

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.

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.