Reddit (NYSE:RDDT) Stock Price Target Lowered at BNP Paribas Exane

Key Points

• BNP Paribas Exane cut Reddit’s price target from $180 to $110, implying roughly 20% upside from the stock’s $91.60 price. Other analysts also lowered targets or ratings, though the consensus remains “Moderate Buy” with a $180.91 target.
• Reddit reported strong quarterly results, including 53% year-over-year revenue growth to $895 million and EPS of $1.40, beating analyst expectations.
• Despite solid financial performance, investors remain concerned about slowing U.S. user growth and reduced traffic from Google’s AI search changes; insiders have also sold more than 306,000 shares over the past 90 days.

Reddit (NYSE:RDDT - Get Free Report) had its price target decreased by equities research analysts at BNP Paribas Exane from $180.00 to $110.00 in a research note issued on Friday. BNP Paribas Exane's target price suggests a potential upside of 20.09% from the stock's current price.

Several other equities analysts also recently commented on RDDT. Truist Financial decreased their target price on Reddit from $275.00 to $210.00 and set a "buy" rating on the stock in a research report on Friday. Citigroup cut Reddit from a "market outperform" rating to a "market perform" rating in a report on Friday. Cantor Fitzgerald reduced their price target on Reddit from $170.00 to $120.00 and set a "neutral" rating for the company in a research note on Friday. Jefferies Financial Group set a $250.00 price objective on Reddit in a report on Friday, July 10th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Reddit in a research report on Wednesday, August 5th. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and fifteen have issued a Hold rating to the company. According to data from MarketBeat, Reddit presently has a consensus rating of "Moderate Buy" and a consensus target price of $180.91.

Reddit Stock Down 0.1%

Shares of NYSE RDDT traded down $0.13 during mid-day trading on Friday, reaching $91.60. 8,786,213 shares of the company were exchanged, compared to its average volume of 5,539,729. The company's 50-day simple moving average is $150.37 and its 200-day simple moving average is $160.26. The stock has a market capitalization of $17.62 billion, a P/E ratio of 18.65, a P/E/G ratio of 0.42 and a beta of 2.05. Reddit has a twelve month low of $89.28 and a twelve month high of $263.50.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, October 29th. The company reported $1.40 EPS for the quarter, topping the consensus estimate of $1.33 by $0.07. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The business had revenue of $894.96 million during the quarter, compared to the consensus estimate of $874.91 million. During the same quarter in the previous year, the firm posted $0.80 EPS. Reddit's revenue was up 53.0% compared to the same quarter last year. As a group, equities research analysts expect that Reddit will post 5.28 EPS for the current year.

Insider Transactions at Reddit

In related news, Director Robert A. Sauerberg sold 5,128 shares of the stock in a transaction that occurred 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 sale, the director owned 27,087 shares of the company's stock, valued at $4,331,753.04. This represents a 15.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, COO Jennifer L. Wong sold 75,000 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $178.55, for a total value of $13,391,250.00. Following the sale, the chief operating officer directly owned 1,050,339 shares in the company, valued at $187,538,028.45. This represents a 6.66% 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 company insiders.

Institutional Investors Weigh In On Reddit

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Wellington Management Group LLP lifted its position in shares of Reddit by 21.8% during the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company's stock valued at $271,572,000 after buying an additional 280,030 shares during the last quarter. State Street Corp grew its stake 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 worth $517,197,000 after acquiring an additional 237,523 shares during the period. Moore Capital Management LP increased its holdings in Reddit by 611.4% in the 2nd quarter. Moore Capital Management LP now owns 12,577 shares of the company's stock worth $2,183,000 after acquiring an additional 10,809 shares during the last quarter. Light Street Capital Management LLC purchased a new stake in Reddit in the 2nd quarter worth about $31,678,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab raised its stake in Reddit by 102.3% in the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 19,120 shares of the company's stock valued at $3,319,000 after acquiring an additional 9,670 shares during the period.

Key Stories Impacting Reddit

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.

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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