Reddit (NYSE:RDDT) Stock Price Target Lowered at Wells Fargo & Company

Key Points

• Wells Fargo cut Reddit’s price target from $142 to $110 while maintaining an “equal weight” rating, implying about 22% upside from the stock’s current price. Other analysts also lowered targets or adopted more cautious ratings.
• Reddit shares fell 30.4% to $90.19, near their one-year low, amid concerns about weaker fourth-quarter guidance, declining U.S. users, and reduced search-driven traffic linked to AI-generated answers.
• Despite the outlook concerns, Reddit exceeded third-quarter expectations with adjusted EPS of $1.40 versus $1.33 expected and revenue of approximately $895 million, up 53% year over year. MarketBeat analysts still hold a consensus “Moderate Buy” rating with an average target of $200.16.

Reddit (NYSE:RDDT - Get Free Report) had its target price reduced by research analysts at Wells Fargo & Company from $142.00 to $110.00 in a research report issued on Friday, Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Wells Fargo & Company's price target would indicate a potential upside of 21.96% from the stock's current price.

RDDT has been the topic of several other reports. DA Davidson decreased their price objective on Reddit from $200.00 to $185.00 and set a "buy" rating on the stock in a report on Friday, September 18th. Citizens Jmp cut shares of Reddit from a "market outperform" rating to a "market perform" rating in a research report on Friday. Wedbush decreased their price target on shares of Reddit from $221.00 to $150.00 and set an "outperform" rating on the stock in a research note on Friday. Sanford C. Bernstein reiterated a "market perform" rating and set a $120.00 price objective on shares of Reddit in a research report on Friday. Finally, Deutsche Bank Aktiengesellschaft set a $200.00 price objective on shares of Reddit in a research note on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and thirteen have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $200.16.

Reddit Trading Down 30.4%

Shares of NYSE:RDDT traded down $39.41 during midday trading on Friday, reaching $90.19. 25,411,838 shares of the company were exchanged, compared to its average volume of 5,483,052. The stock has a market cap of $17.35 billion, a PE ratio of 21.06, a price-to-earnings-growth ratio of 0.62 and a beta of 2.05. The business's fifty day moving average is $151.54 and its two-hundred day moving average is $161.02. Reddit has a one year low of $89.28 and a one year high of $263.50.

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, topping the consensus estimate of $1.33 by $0.07. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The business had revenue of $894.96 million for the quarter, compared to analysts' expectations of $874.91 million. During the same quarter in the previous year, the company earned $0.80 EPS. The business's quarterly revenue was up 53.0% compared to the same quarter last year. As a group, sell-side analysts expect that Reddit will post 5.28 EPS for the current year.

Insider Buying and Selling at Reddit

In related news, Director Robert A. Sauerberg sold 5,128 shares of the business's stock in a transaction 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 completion of the transaction, the director owned 27,087 shares in the company, valued at $4,331,753.04. The trade was a 15.92% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Jennifer L. Wong sold 75,000 shares of the company's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $178.55, for a total value of $13,391,250.00. Following the completion of the transaction, the chief operating officer directly owned 1,050,339 shares in the company, valued at $187,538,028.45. This trade represents a 6.66% 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. Insiders sold 306,052 shares of company stock worth $49,754,523 over the last 90 days. Company insiders own 28.48% of the company's stock.

Institutional Trading of Reddit

Institutional investors and hedge funds have recently made changes to their positions in the business. Senvest Management LLC purchased a new stake in shares of Reddit in the 1st quarter worth approximately $48,392,000. Robeco Institutional Asset Management B.V. boosted its stake in Reddit by 74.6% in the third quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company's stock valued at $115,243,000 after acquiring an additional 345,735 shares in the last quarter. Wellington Management Group LLP grew its stake in Reddit by 21.8% during the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company's stock worth $271,572,000 after buying an additional 280,030 shares during the last quarter. Styrax Capital LP purchased a new stake in Reddit in the second quarter valued at about $43,395,000. Finally, State Street Corp boosted its holdings in Reddit by 8.7% in the second 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 in the last quarter.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit exceeded third-quarter expectations, reporting adjusted EPS of $1.40 versus the $1.33 consensus and revenue of approximately $895 million versus $875 million expected. Revenue increased 53% year over year, while net income also grew substantially. Reddit Reports Third Quarter 2026 Results
• Positive Sentiment: Truist Financial and B. Riley maintained “buy” ratings despite lowering their price targets to $210 and $190, respectively, suggesting they still see significant long-term upside if Reddit can stabilize traffic and user growth. Reddit Analysts Slash Their Forecasts Following Q3 Earnings
• Neutral Sentiment: Reddit plans to test a primarily logged-in experience to reduce scraping and potentially improve engagement and monetization. However, requiring an account to view content could further reduce casual and search-driven visitors before the benefits materialize. Reddit Search Traffic and Visitor Sign-ins
• Negative Sentiment: Management issued weaker-than-expected fourth-quarter guidance and warned that daily active unique visitors could fall by a low-double-digit percentage from roughly 130 million. Declining Google referrals, increasingly driven by AI-generated search answers, are reducing Reddit’s audience funnel.
• Negative Sentiment: The audience mix is also becoming less attractive: U.S. daily users declined while international users increased, and U.S. users generate substantially more advertising revenue than international users. Reddit Earns More From Fewer U.S. Users
• Negative Sentiment: Several analysts became more cautious: Oppenheimer and Citizens JMP downgraded Reddit to “market perform,” while Bernstein lowered its target to $120 and Cantor Fitzgerald cut its target to $120 with a neutral rating. The broader technology selloff and concerns about AI’s impact on internet traffic added further pressure. Reddit Stock Guidance and DAU Decline

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.