Reddit (NYSE:RDDT) Stock Price Target Lowered at Piper Sandler

Key Points

• Piper Sandler lowered Reddit’s price target from $195 to $145, though the revised target still implies roughly 58% upside from the reported $91.60 share price. The analyst consensus remains “Moderate Buy,” with an average target of $180.91.
• Reddit reported stronger-than-expected quarterly results, including $894.96 million in revenue, 53% year-over-year growth and EPS of $1.40 versus the $1.33 consensus estimate.
• Despite solid financial growth, investor concerns remain over declining U.S. user traffic tied to Google’s AI search changes. Several analysts have cut price targets or ratings, while insiders have sold approximately $49.8 million of stock over the past three months.

Reddit (NYSE:RDDT - Get Free Report) had its price objective dropped by equities research analysts at Piper Sandler from $195.00 to $145.00 in a research note issued to investors on Friday. Piper Sandler's price target would suggest a potential upside of 58.30% from the company's current price.

Other equities analysts have also recently issued reports about the company. Telsey Advisory Group set a $240.00 target price on Reddit in a research note on Friday, July 31st. UBS Group reaffirmed a "buy" rating on shares of Reddit in a research note on Friday. Guggenheim cut their price target on shares of Reddit from $255.00 to $170.00 and set a "buy" rating on the stock in a report on Friday. Citizens Jmp cut shares of Reddit from a "market outperform" rating to a "market perform" rating in a report on Friday. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Reddit from $185.00 to $150.00 and set a "neutral" rating on the stock in a research report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and fifteen have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $180.91.

Reddit Stock Performance

Shares of NYSE RDDT traded down $0.13 during trading hours on Friday, hitting $91.60. The company's stock had a trading volume of 8,786,213 shares, compared to its average volume of 5,539,729. The stock has a market cap 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 has a 12 month low of $89.28 and a 12 month high of $263.50. The business has a 50-day simple moving average of $150.37 and a 200-day simple moving average of $160.26.

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

Insiders Place Their Bets

In other Reddit news, CEO Steve Huffman sold 17,308 shares of the business's stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $158.57, for a total value of $2,744,529.56. Following the sale, the chief executive officer directly owned 336,432 shares of the company's stock, valued at approximately $53,348,022.24. The trade was a 4.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total transaction of $820,069.76. Following the sale, 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 ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 306,052 shares of company stock valued at $49,754,523. 28.48% of the stock is currently owned by corporate insiders.

Institutional Trading of Reddit

Institutional investors have recently made changes to their positions in the stock. State Street Corp grew its position in Reddit by 8.7% in the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company's stock worth $517,197,000 after purchasing an additional 237,523 shares during the period. Wellington Management Group LLP lifted its holdings 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 period. DSM Capital Partners LLC boosted its stake in shares of Reddit by 5.3% in the 1st quarter. DSM Capital Partners LLC now owns 848,206 shares of the company's stock worth $114,211,000 after buying an additional 42,808 shares during the last quarter. 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 worth $115,243,000 after buying an additional 345,735 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Reddit by 8.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 481,893 shares of the company's stock worth $83,647,000 after acquiring an additional 39,540 shares during the period.

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.

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.

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