Reddit Stock Gets Stronger EPS Forecast from KeyCorp

Key Points

• KeyCorp raised its Q4 2026 EPS estimate for Reddit to $1.75 from $1.74 and projected FY2027 EPS of $6.39, while maintaining a “Sector Weight” rating.
• Reddit’s latest quarter exceeded expectations, with EPS of $1.40 versus $1.33 expected and revenue of approximately $895 million, up 53% year over year.
• Despite strong financial results, analyst sentiment has become more cautious: several firms cut price targets, and investors remain concerned about Google-related traffic declines, user growth and Reddit’s logged-in-only strategy. MarketBeat’s consensus rating remains “Moderate Buy,” with a $180.91 target price.

Reddit Inc. (NYSE:RDDT - Free Report) - Equities researchers at KeyCorp increased their Q4 2026 EPS estimates for Reddit in a research report issued on Thursday, October 29th. KeyCorp analyst J. Patterson now forecasts that the company will earn $1.75 per share for the quarter, up from their previous forecast of $1.74. KeyCorp has a "Sector Weight" rating on the stock. The consensus estimate for Reddit's current full-year earnings is $5.28 per share. KeyCorp also issued estimates for Reddit's FY2027 earnings at $6.39 EPS.

A number of other brokerages have also recently issued reports on RDDT. Wells Fargo & Company decreased their target price on Reddit from $142.00 to $110.00 and set an "equal weight" rating on the stock in a report on Friday. Zacks Research raised Reddit from a "hold" rating to a "strong-buy" rating in a report on Tuesday, October 27th. Citigroup cut Reddit from a "market outperform" rating to a "market perform" rating in a research note on Friday. Sanford C. Bernstein restated a "market perform" rating and set a $120.00 price objective (down from $180.00) on shares of Reddit in a report on Friday. Finally, Wedbush cut their price objective on Reddit from $221.00 to $150.00 and set an "outperform" rating on the stock in a report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and fifteen have issued a Hold rating to the company's stock. Based on data from MarketBeat, Reddit presently has a consensus rating of "Moderate Buy" and a consensus target price of $180.91.

Reddit Stock Performance

Shares of NYSE:RDDT opened at $91.05 on Tuesday. Reddit has a one year low of $89.28 and a one year high of $263.50. The stock has a fifty day moving average of $149.13 and a 200-day moving average of $159.42. The company has a market capitalization of $17.52 billion, a PE ratio of 18.58, a price-to-earnings-growth ratio of 0.62 and a beta of 2.05.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, topping analysts' consensus estimates of $1.33 by $0.07. The firm had revenue of $894.96 million during the quarter, compared to analysts' expectations of $874.91 million. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The firm's revenue for the quarter was up 53.0% compared to the same quarter last year. During the same period last year, the firm posted $0.80 earnings per share.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. CenterBook Partners LP acquired a new stake in shares of Reddit in the 3rd quarter valued at about $2,169,000. International Assets Investment Management LLC lifted its holdings in shares of Reddit by 13.8% in the third quarter. International Assets Investment Management LLC now owns 15,907 shares of the company's stock valued at $2,379,000 after purchasing an additional 1,931 shares in the last quarter. Kestra Advisory Services LLC boosted its position in shares of Reddit by 48.2% during the third quarter. Kestra Advisory Services LLC now owns 33,548 shares of the company's stock worth $4,779,000 after buying an additional 10,908 shares during the period. Commonwealth Equity Services LLC boosted its position in shares of Reddit by 7.5% during the third quarter. Commonwealth Equity Services LLC now owns 38,368 shares of the company's stock worth $5,465,000 after buying an additional 2,682 shares during the period. Finally, TFB Advisors LLC boosted its position in shares of Reddit by 102.7% during the third quarter. TFB Advisors LLC now owns 2,789 shares of the company's stock worth $397,000 after buying an additional 1,413 shares during the period.

Insider Activity at Reddit

In related news, COO Jennifer Wong sold 75,000 shares of the stock in a transaction dated 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 completion of the sale, the chief operating officer directly owned 1,050,339 shares of the company's stock, valued at approximately $187,538,028.45. This represents a 6.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Huffman sold 18,000 shares of the firm's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $178.16, for a total value of $3,206,880.00. Following the sale, the chief executive officer owned 373,814 shares of the company's stock, valued at $66,598,702.24. The trade was a 4.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 288,052 shares of company stock valued at $46,878,483. Company insiders own 28.48% of the company's stock.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s underlying financial results remain strong: quarterly revenue increased 53% year over year to approximately $895 million, while earnings exceeded analyst expectations. A separate analysis also highlighted improving average revenue per user, suggesting that advertiser monetization and engagement remain healthy. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Although analysts broadly reduced their targets, many remain above the recent share price. Deutsche Bank maintained a “buy” rating with a $165 target, while Jefferies, Goldman Sachs, Piper Sandler and JPMorgan assigned targets ranging from $140 to $155, $145 and $150, respectively. This indicates that the selloff may have created potential value if Reddit stabilizes traffic and user growth. Deutsche Bank Reddit Rating
• Neutral Sentiment: Analyst valuation comparisons continue to debate whether RDDT offers better value than other internet-platform stocks, including Spotify. The discussion reinforces that Reddit’s valuation depends heavily on its ability to convert engagement into sustainable advertising growth. RDDT vs. SPOT
• Negative Sentiment: The dominant catalyst is concern that Google’s AI search changes are reducing traffic to Reddit, particularly in the United States. Investors are also worried that Reddit’s logged-in-only strategy could limit user acquisition and raise the cost of attracting new users. Reddit Stock Sinks as Q3 Results Clash With User Outlook
• Negative Sentiment: A wave of target reductions and downgrades—including moves to “neutral,” “hold,” “in-line” and “market perform”—has weakened investor confidence, even though revised targets remain above the recent price. Reddit Fair Value Moves Lower
• Negative Sentiment: Kirby McInerney LLP announced an investigation into potential securities-law or business-practice violations involving Reddit and its management. The announcement is preliminary and does not establish wrongdoing, but it adds legal and reputational risk. Reddit Investigation Announcement

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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