Reddit (NYSE:RDDT) Stock Price Target Lowered at Deutsche Bank Aktiengesellschaft

Key Points

• Deutsche Bank lowered Reddit’s price target from $200 to $165 while maintaining a “buy” rating, implying roughly 80% upside from the prior close. MarketBeat analysts collectively rate the stock “Moderate Buy,” with an average target of $180.91.
• Reddit reported stronger-than-expected quarterly results, including 53% year-over-year revenue growth to about $895 million and EPS of $1.40 versus the $1.33 consensus estimate.
• Despite the earnings beat, Reddit faces pressure from declining U.S. user growth and concerns that Google’s AI search changes are reducing traffic; shares recently traded near $91.60, well below their 52-week high of $263.50.

Reddit (NYSE:RDDT - Get Free Report) had its price target lowered by analysts at Deutsche Bank Aktiengesellschaft from $200.00 to $165.00 in a research note issued on Friday. The firm currently has a "buy" rating on the stock. Deutsche Bank Aktiengesellschaft's price objective indicates a potential upside of 80.13% from the stock's previous close.

Several other analysts also recently issued reports on the company. Morgan Stanley lowered their price target on Reddit from $240.00 to $210.00 and set an "overweight" rating for the company in a report on Friday, August 21st. Jefferies Financial Group set a $250.00 price objective on Reddit in a research note on Friday, July 10th. Piper Sandler reaffirmed an "overweight" rating and issued a $195.00 target price (down from $215.00) on shares of Reddit in a research report on Friday, July 31st. DA Davidson lowered their target price on Reddit from $185.00 to $125.00 and set a "buy" rating for the company in a research note on Monday. Finally, Zacks Research upgraded Reddit from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, October 27th. Two investment 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 MarketBeat, Reddit currently has an average rating of "Moderate Buy" and an average price target of $180.91.

Reddit Trading Down 0.1%

Shares of Reddit stock traded down $0.13 during trading hours on Friday, reaching $91.60. The stock had a trading volume of 8,786,213 shares, compared to its average volume of 5,539,729. Reddit has a 1 year low of $89.28 and a 1 year high of $263.50. The firm has a 50 day simple moving average of $150.37 and a two-hundred day simple moving average of $160.26. The firm 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.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, beating analysts' consensus estimates of $1.33 by $0.07. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The firm had revenue of $894.96 million for the quarter, compared to analysts' expectations of $874.91 million. During the same period in the previous year, the company posted $0.80 earnings per share. Reddit's revenue was up 53.0% compared to the same quarter last year. Sell-side analysts forecast that Reddit will post 5.28 EPS for the current year.

Insider Activity at Reddit

In other news, COO Jennifer L. Wong sold 60,000 shares of the firm's 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 sale, the chief operating officer directly owned 1,012,226 shares in the company, valued at $152,390,624.30. This trade represents a 5.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 Reddit 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 sale, the director directly owned 27,087 shares in the company, 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. In the last three months, insiders sold 306,052 shares of company stock valued at $49,754,523. Corporate insiders own 28.48% of the company's stock.

Institutional Investors Weigh In On Reddit

A number of hedge funds have recently bought and sold shares of the business. Wellington Management Group LLP raised its position 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. State Street Corp boosted 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 valued at $517,197,000 after buying an additional 237,523 shares during the last quarter. Moore Capital Management LP boosted its stake in shares of Reddit by 611.4% during the 2nd quarter. Moore Capital Management LP now owns 12,577 shares of the company's stock valued at $2,183,000 after buying an additional 10,809 shares during the last quarter. Light Street Capital Management LLC acquired a new stake in shares of Reddit during the second quarter worth approximately $31,678,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab grew its position in shares of Reddit by 102.3% during the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 19,120 shares of the company's stock worth $3,319,000 after buying an additional 9,670 shares in the last quarter.

More Reddit News

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.