Reddit (NYSE:RDDT) Stock Price Target Lowered at B. Riley Financial

Key Points

• B. Riley Financial lowered its Reddit price target from $270 to $190 while maintaining a “buy” rating; the new target implies roughly 98% upside from the prior close.
• Reddit reported better-than-expected quarterly results, with $1.40 in adjusted EPS and approximately $895 million in revenue, up 53% year over year.
• Despite the earnings beat, concerns over weaker guidance, slowing user growth and declining Google search referrals prompted several analysts to cut targets or downgrade the stock; the consensus rating remains “Moderate Buy” with an average target of $207.52.

Reddit (NYSE:RDDT - Get Free Report) had its target price dropped by equities researchers at B. Riley Financial from $270.00 to $190.00 in a note issued to investors on Friday, Benzinga reports. The firm currently has a "buy" rating on the stock. B. Riley Financial's price target suggests a potential upside of 98.42% from the stock's previous close.

A number of other research analysts also recently issued reports on RDDT. Citizens Jmp downgraded shares of Reddit from a "market outperform" rating to a "market perform" rating in a research report on Friday. Deutsche Bank Aktiengesellschaft set a $200.00 price objective on shares of Reddit in a research note on Friday, July 31st. Zacks Research upgraded shares of Reddit from a "hold" rating to a "strong-buy" rating in a report on Tuesday. Bank of America reaffirmed a "neutral" rating on shares of Reddit in a research report on Friday. Finally, Robert W. Baird set a $185.00 target price on Reddit in a research report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and thirteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $207.52.

Reddit Price Performance

RDDT stock opened at $95.75 on Friday. Reddit has a 1 year low of $96.16 and a 1 year high of $263.50. The stock has a market cap of $18.42 billion, a price-to-earnings ratio of 22.67, a P/E/G ratio of 0.62 and a beta of 2.05. The company has a 50 day simple moving average of $151.54 and a 200 day simple moving average of $161.02.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The company reported $1.40 EPS for the quarter, beating analysts' consensus estimates 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 29.02% and a net margin of 31.35%. The business's revenue for the quarter was up 53.0% on a year-over-year basis. During the same period last year, the firm posted $0.80 earnings per share. On average, equities research analysts anticipate that Reddit will post 5.28 EPS for the current fiscal year.

Insider Activity at Reddit

In other news, Director Robert Sauerberg sold 5,128 shares of the firm's stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total transaction of $820,069.76. Following the completion of the sale, the director owned 27,087 shares in the company, valued at $4,331,753.04. This trade represents a 15.92% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Steve Huffman sold 18,000 shares of Reddit stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $178.16, for a total value of $3,206,880.00. Following the completion of the sale, the chief executive officer directly owned 373,814 shares of the company's stock, valued at approximately $66,598,702.24. This trade represents a 4.59% decrease in their position. 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 90 days, insiders sold 306,052 shares of company stock worth $49,754,523. 28.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Senvest Management LLC bought a new position in Reddit during the first quarter valued at approximately $48,392,000. Robeco Institutional Asset Management B.V. boosted its stake in shares of 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 purchasing an additional 345,735 shares in the last quarter. Wellington Management Group LLP boosted its stake in shares of Reddit by 21.8% in the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company's stock valued at $271,572,000 after purchasing an additional 280,030 shares in the last quarter. Styrax Capital LP bought a new position in shares of Reddit during the 2nd quarter valued at $43,395,000. Finally, State Street Corp grew its holdings in shares of Reddit by 8.7% during 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 last quarter.

Key Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported third-quarter adjusted earnings of $1.40 per share and revenue of approximately $895 million, exceeding analyst estimates of $1.33 and $875 million, respectively. Revenue increased 53% year over year, while earnings rose from $0.80 a year earlier. Reddit Inc. Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: The strong quarterly performance demonstrates continued monetization progress, particularly in advertising, and provides some support for Reddit’s long-term growth story. Reddit Reports Third Quarter 2026 Results
• Neutral Sentiment: Reddit said it may test a primarily logged-in experience to reduce data scraping and address declining referrals from Google search. The strategy could improve user registration and monetization over time, but it risks reducing traffic from casual and logged-out visitors in the near term. Reddit Posts Third-Quarter Earnings and Plans Login Requirement Test
• Negative Sentiment: Fourth-quarter guidance was weaker than expected, overshadowing the earnings and revenue beats. Investors are also concerned about slowing daily-user growth, declining Google search traffic, and the impact of AI-powered search on Reddit’s ability to attract visitors. Reddit Shares Tumble on Weak Guidance
• Negative Sentiment: Analysts responded by cutting their forecasts and price targets. Cantor Fitzgerald lowered its target from $170 to $120, while Bernstein reduced its target from $180 to $120; Oppenheimer and Citizens JMP downgraded the shares to “market perform.” These actions signal reduced confidence in Reddit’s near-term growth trajectory. Reddit Analysts Slash Their Forecasts Following Q3 Earnings

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.

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