Citizens Jmp Cuts Reddit (NYSE:RDDT) Price Target to $240.00

Key Points

• Citizens Jmp lowered its price target on Reddit from $250 to $240 while keeping a "market outperform" rating, implying roughly a 46% upside from the stock's current price.
• Q1 beat and guidance: Reddit topped estimates with $1.01 EPS and $663.4M revenue, cited AI‑driven ad products as the growth driver and guided Q2 above consensus, helping spark a double‑digit rally in the stock.
• Insider activity: Insiders have been net sellers recently (280,441 shares sold vs. 61,000 bought over three months), though company insiders still own about 34.25% of shares.

Reddit (NYSE:RDDT - Get Free Report) had its target price lowered by equities research analysts at Citizens Jmp from $250.00 to $240.00 in a research note issued on Friday,Benzinga reports. The firm presently has a "market outperform" rating on the stock. Citizens Jmp's price target suggests a potential upside of 46.47% from the stock's current price.

Several other equities analysts have also issued reports on the stock. Citigroup restated an "outperform" rating on shares of Reddit in a report on Friday. Roth Mkm boosted their target price on shares of Reddit from $210.00 to $215.00 and gave the company a "neutral" rating in a report on Friday, January 30th. Rothschild & Co Redburn set a $110.00 target price on shares of Reddit in a report on Monday. Bank of America dropped their target price on shares of Reddit from $205.00 to $175.00 and set a "neutral" rating on the stock in a report on Thursday, April 2nd. Finally, The Goldman Sachs Group dropped their target price on shares of Reddit from $206.00 to $180.00 and set a "neutral" rating on the stock in a report on Tuesday, April 14th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, Reddit currently has a consensus rating of "Moderate Buy" and a consensus target price of $229.50.

Reddit Trading Up 11.3%

RDDT stock traded up $16.62 during midday trading on Friday, hitting $163.85. The stock had a trading volume of 4,936,962 shares, compared to its average volume of 5,171,784. The firm has a market cap of $31.30 billion, a P/E ratio of 62.83, a price-to-earnings-growth ratio of 1.07 and a beta of 2.40. Reddit has a 1-year low of $94.89 and a 1-year high of $282.95. The business has a fifty day moving average price of $144.12 and a two-hundred day moving average price of $184.31.

Reddit (NYSE:RDDT - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.39. The business had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. Reddit had a net margin of 24.05% and a return on equity of 20.89%. Reddit's revenue for the quarter was up 69.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.13 earnings per share. On average, equities analysts anticipate that Reddit will post 4.02 EPS for the current year.

Insider Activity at Reddit

In other news, CEO Steve Ladd Huffman sold 18,000 shares of the company's stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $145.12, for a total transaction of $2,612,160.00. Following the transaction, the chief executive officer owned 411,195 shares in the company, valued at approximately $59,672,618.40. This represents a 4.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Christopher Brian Slowe sold 19,036 shares of the company's stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $144.05, for a total transaction of $2,742,135.80. Following the transaction, the chief technology officer owned 185,057 shares in the company, valued at $26,657,460.85. This represents a 9.33% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have bought 61,000 shares of company stock worth $8,870,815 and have sold 280,441 shares worth $40,873,759. Company insiders own 34.25% of the company's stock.

Hedge Funds Weigh In On Reddit

Several institutional investors have recently made changes to their positions in RDDT. NewEdge Advisors LLC increased its position in shares of Reddit by 143.3% during the first quarter. NewEdge Advisors LLC now owns 7,982 shares of the company's stock worth $837,000 after acquiring an additional 4,701 shares in the last quarter. Empowered Funds LLC bought a new stake in shares of Reddit during the first quarter worth about $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Reddit by 106.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company's stock worth $22,759,000 after acquiring an additional 111,780 shares in the last quarter. Focus Partners Wealth increased its position in shares of Reddit by 40.8% during the first quarter. Focus Partners Wealth now owns 10,224 shares of the company's stock worth $1,073,000 after acquiring an additional 2,965 shares in the last quarter. Finally, Geneos Wealth Management Inc. increased its position in shares of Reddit by 344.6% during the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock worth $39,000 after acquiring an additional 286 shares in the last quarter.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q1 results beat and strong guidance — Reddit posted a sizable beat on revenue and EPS, delivered a $204M profit, and guided Q2 revenue above consensus, supporting the rally. Reddit Reports First Quarter 2026 Results
• Positive Sentiment: AI-driven ad products cited as the growth engine — Company commentary and multiple reports point to stronger returns from AI advertising tools as the key driver of higher ad sales and the bullish revenue outlook. Reddit rallies as AI‑driven ad growth fuels strong revenue outlook
• Positive Sentiment: Market reaction in premarket/after-hours trading — Reports show shares jumped substantially in premarket trading after the prints and guidance, reflecting renewed investor enthusiasm. Reddit stock jumps 12%: can AI-driven ads spark stock revival?
• Positive Sentiment: Analyst support — Needham reaffirmed a Buy and set a $300 price target, signaling bullish analyst conviction that could reinforce momentum. Benzinga
• Neutral Sentiment: Product/engagement improvement — Weekly search usage is up ~30% YoY, showing product improvements that could help ad targeting and engagement over time. People are finally using Reddit's search
• Neutral Sentiment: Earnings call transcript and metric details available — The full transcript and metric breakdowns provide more color but contain no immediate surprises beyond management’s upbeat commentary. Reddit Q1 2026 Earnings Call Transcript
• Negative Sentiment: Mixed coverage on profitability detail — One outlet framed the quarter as an earnings “miss” offset by adjusted EBITDA and revenue strength; such mixed narratives can create short-term volatility despite the beat. Reddit stock climbs as revenue, adjusted EBITDA surge offsets earnings miss

About Reddit

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called "subreddits," each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.

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