Truist Financial Issues Positive Forecast for Reddit (NYSE:RDDT) Stock Price

Key Points

• Truist Financial raised its Reddit price target to $275 from $265 and maintained a “buy” rating, implying 84.44% upside from the prior close.
• Reddit exceeded quarterly expectations with $1.25 adjusted EPS and $804.9 million in revenue, up 61% year over year; its third-quarter revenue forecast of $860 million–$870 million also topped consensus.
• Despite strong results and a “Moderate Buy” analyst consensus, shares have faced pressure from concerns that Google’s AI search features could reduce referrals, user engagement and advertising revenue.

Reddit (NYSE:RDDT - Get Free Report) had its price objective raised by Truist Financial from $265.00 to $275.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Truist Financial's price target suggests a potential upside of 84.44% from the company's previous close.

Several other research firms also recently issued reports on RDDT. Evercore reissued an "outperform" rating and issued a $265.00 price target on shares of Reddit in a research report on Friday. Wall Street Zen lowered Reddit from a "buy" rating to a "hold" rating in a report on Sunday, May 10th. Zacks Research raised Reddit from a "hold" rating to a "strong-buy" rating in a report on Monday. Sanford C. Bernstein reiterated a "market perform" rating and set a $180.00 price target on shares of Reddit in a research report on Friday. Finally, Citizens Jmp cut their price target on shares of Reddit from $250.00 to $240.00 and set a "market outperform" rating for the company in a report on Friday, May 1st. Two research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and eleven have given a Hold rating to the company's stock. According to data from MarketBeat, Reddit has a consensus rating of "Moderate Buy" and a consensus target price of $228.65.

Reddit Stock Down 16.3%

Shares of RDDT stock opened at $149.10 on Friday. The firm has a market capitalization of $28.70 billion, a P/E ratio of 42.12 and a beta of 1.93. Reddit has a twelve month low of $119.27 and a twelve month high of $282.95. The stock's fifty day simple moving average is $176.74 and its 200 day simple moving average is $165.09.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping analysts' consensus estimates of $0.95 by $0.30. The company had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. Reddit had a net margin of 28.60% and a return on equity of 25.48%. Reddit's revenue was up 61.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.45 earnings per share. As a group, equities research analysts expect that Reddit will post 4.85 EPS for the current fiscal year.

Insider Buying and Selling

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of the company's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the completion of the transaction, the chief operating officer owned 1,088,451 shares of the company's stock, valued at $172,541,252.52. This represents a 3.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Marie Reynolds sold 808 shares of Reddit stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the completion of the sale, the chief accounting officer owned 15,060 shares in the company, valued at approximately $3,012,000. This represents a 5.09% decrease in their ownership of the stock. 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 have sold a total of 169,141 shares of company stock worth $28,680,845 in the last 90 days. 28.48% of the stock is owned by company insiders.

Institutional Trading of Reddit

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Capital World Investors bought a new position in Reddit in the 4th quarter worth $1,293,258,000. Norges Bank purchased a new position in shares of Reddit during the fourth quarter valued at about $372,047,000. Invesco Ltd. lifted its holdings in Reddit by 419.0% in the third quarter. Invesco Ltd. now owns 1,487,941 shares of the company's stock worth $342,212,000 after buying an additional 1,201,237 shares during the period. State Street Corp lifted its holdings in Reddit by 138.5% in the second quarter. State Street Corp now owns 2,030,139 shares of the company's stock worth $305,678,000 after buying an additional 1,178,890 shares during the period. Finally, Vanguard Group Inc. boosted its position in Reddit by 8.9% during the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company's stock valued at $3,062,339,000 after acquiring an additional 1,083,540 shares in the last quarter.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q2 results beat expectations. Reddit reported adjusted EPS of $1.25, versus the $0.95–$0.99 analyst consensus, while revenue rose 61% year over year to $804.9 million, well above the roughly $731 million estimate. Net income reached $253 million, supported by continued user growth and higher advertising revenue. Reddit crushes revenue and earnings estimates, issues strong guidance
• Positive Sentiment: Third-quarter guidance exceeded Wall Street forecasts. Reddit projected revenue of $860 million to $870 million, above the $829.7 million consensus estimate. Management also said AI-powered advertising tools are helping attract marketers and support commercial momentum. Reddit expects revenue above estimates as AI tools attract advertisers
• Positive Sentiment: Analyst sentiment improved. KeyCorp upgraded Reddit to “strong buy,” reflecting confidence in the company’s growth and momentum. Reddit upgraded by KeyCorp
• Neutral Sentiment: Management defended Reddit’s search value. CEO Steve Huffman said Google’s AI Overviews have not yet replaced the value of traditional search links, but the company acknowledged that search-engine referrals have become “choppy.”
• Negative Sentiment: AI-related search disruption overshadowed the earnings beat. Investors are concerned that Google’s AI search features could reduce traffic referrals to Reddit and potentially weaken user growth, engagement, and advertising monetization. Reports also suggested Reddit could reconsider a Google partnership reportedly worth about $60 million annually if search traffic continues to deteriorate. Reddit’s strong quarter fails to lift shares as AI search concerns linger

Reddit Company Profile

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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