Roth Capital Issues Negative Outlook for Reddit Earnings

Reddit Inc. (NYSE:RDDT - Free Report) - Roth Capital reduced their Q3 2025 earnings per share (EPS) estimates for Reddit in a report released on Monday, July 21st. Roth Capital analyst R. Kulkarni now anticipates that the company will post earnings of $0.32 per share for the quarter, down from their previous forecast of $0.35. Roth Capital currently has a "Neutral" rating and a $145.00 price target on the stock. The consensus estimate for Reddit's current full-year earnings is $1.12 per share. Roth Capital also issued estimates for Reddit's Q3 2026 earnings at $0.63 EPS.

A number of other equities analysts also recently commented on RDDT. Wall Street Zen upgraded shares of Reddit from a "hold" rating to a "buy" rating in a report on Saturday, June 14th. Seaport Res Ptn upgraded shares of Reddit from a "hold" rating to a "strong-buy" rating in a report on Monday, May 5th. JPMorgan Chase & Co. reduced their target price on shares of Reddit from $185.00 to $110.00 and set a "neutral" rating for the company in a report on Tuesday, April 8th. Citigroup boosted their price target on Reddit from $158.00 to $163.00 and gave the stock a "buy" rating in a research note on Tuesday, June 24th. Finally, Guggenheim restated a "buy" rating and set a $165.00 price target on shares of Reddit in a research note on Tuesday, June 24th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating, thirteen have assigned a buy rating and two have issued a strong buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $144.13.

Reddit Price Performance

Reddit stock traded up $1.60 during trading hours on Wednesday, reaching $149.73. The stock had a trading volume of 4,495,742 shares, compared to its average volume of 6,198,616. The company has a market cap of $27.63 billion, a price-to-earnings ratio of 253.78, a PEG ratio of 3.80 and a beta of 2.33. The business's 50 day moving average price is $131.22 and its 200-day moving average price is $138.99. Reddit has a 52 week low of $49.13 and a 52 week high of $230.41.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, May 1st. The company reported $0.13 EPS for the quarter, topping analysts' consensus estimates of $0.02 by $0.11. The business had revenue of $392.36 million during the quarter, compared to the consensus estimate of $370.55 million. Reddit had a net margin of 8.07% and a return on equity of 5.69%. The firm's revenue was up 61.5% on a year-over-year basis. During the same period in the previous year, the company posted ($8.19) earnings per share.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. CWM LLC lifted its position in shares of Reddit by 100.0% during the 1st quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after buying an additional 128 shares in the last quarter. Stone House Investment Management LLC purchased a new position in Reddit in the 1st quarter valued at $31,000. Tucker Asset Management LLC purchased a new position in Reddit in the 4th quarter valued at $39,000. Geneos Wealth Management Inc. lifted its holdings in Reddit by 344.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after purchasing an additional 286 shares in the last quarter. Finally, Canton Hathaway LLC purchased a new position in Reddit in the 1st quarter valued at $43,000.

Insider Buying and Selling at Reddit

In other news, CAO Michelle Marie Reynolds sold 3,500 shares of the firm's stock in a transaction that occurred on Wednesday, June 25th. The shares were sold at an average price of $150.64, for a total transaction of $527,240.00. Following the sale, the chief accounting officer owned 37,868 shares of the company's stock, valued at $5,704,435.52. This trade represents a 8.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CTO Christopher Brian Slowe sold 16,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 22nd. The stock was sold at an average price of $145.58, for a total transaction of $2,329,280.00. Following the sale, the chief technology officer directly owned 241,373 shares in the company, valued at $35,139,081.34. The trade was a 6.22% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 506,809 shares of company stock worth $61,884,325. 34.25% of the stock is currently owned by insiders.

About Reddit

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.