Reddit (NYSE:RDDT) Rating Lowered to Inline at Evercore

Reddit (NYSE:RDDT) was downgraded by analysts at Evercore from an “outperform” rating to an “inline” rating in a research report issued on Monday, Briefing.com reports. They presently have a $120.00 price target on the stock. Evercore‘s price objective indicates a potential upside of 30.80% from the company’s previous close.

Several other equities research analysts have also recently issued reports on RDDT. Zacks Research raised shares of Reddit from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 27th. Bank of America reiterated a “neutral” rating on shares of Reddit in a research report on Friday. KeyCorp cut shares of Reddit from an “overweight” rating to a “sector weight” rating in a research report on Friday. BNP Paribas Exane assumed coverage on Reddit in a report on Friday, September 18th. They set a “neutral” rating and a $180.00 target price for the company. Finally, Wedbush reduced their target price on shares of Reddit from $221.00 to $150.00 and set an “outperform” rating on the stock in a report on Friday. Two research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and fourteen have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $184.71.

Reddit Stock Up 0.0%

Shares of NYSE RDDT opened at $91.74 on Monday. Reddit has a 52 week low of $89.28 and a 52 week high of $263.50. The firm has a market cap of $17.65 billion, a P/E ratio of 18.72, a P/E/G ratio of 0.42 and a beta of 2.05. The business’s 50 day moving average price is $150.37 and its 200 day moving average price is $160.26.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, beating analysts’ consensus estimates of $1.33 by $0.07. The company had revenue of $894.96 million during the quarter, compared to analysts’ expectations of $874.91 million. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The firm’s revenue for the quarter was up 53.0% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.80 earnings per share. As a group, research analysts expect that Reddit will post 5.28 earnings per share for the current year.

Insider Buying and Selling

In other news, COO Jennifer L. Wong sold 60,000 shares of the stock in a transaction that occurred on Wednesday, October 14th. The stock was sold at an average price of $150.55, for a total transaction of $9,033,000.00. Following the completion of the transaction, the chief operating officer directly owned 1,012,226 shares of the company’s stock, valued at approximately $152,390,624.30. This represents a 5.60% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert A. Sauerberg sold 5,128 shares of Reddit stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total transaction of $820,069.76. Following the sale, the director owned 27,087 shares of the company’s stock, valued at approximately $4,331,753.04. This trade represents a 15.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 306,052 shares of company stock worth $49,754,523 in the last ninety days. 28.48% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Reddit

Hedge funds and other institutional investors have recently bought and sold shares of the business. Evansbrook LLC boosted its stake in Reddit by 2.2% in the first quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock valued at $368,000 after acquiring an additional 59 shares during the period. Signaturefd LLC lifted its holdings in Reddit by 7.6% in the 2nd quarter. Signaturefd LLC now owns 878 shares of the company’s stock valued at $152,000 after acquiring an additional 62 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in Reddit by 48.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after purchasing an additional 64 shares in the last quarter. Versant Capital Management Inc lifted its holdings in shares of Reddit by 31.1% in the second quarter. Versant Capital Management Inc now owns 291 shares of the company’s stock valued at $51,000 after purchasing an additional 69 shares in the last quarter. Finally, Central Pacific Bank Trust Division increased its stake in Reddit by 8.6% in the 3rd quarter. Central Pacific Bank Trust Division now owns 885 shares of the company’s stock valued at $126,000 after buying an additional 70 shares during the period.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Despite weaker U.S. daily active-user trends, Reddit’s revenue increased 53% year over year and advertising revenue per user rose substantially, suggesting strong engagement and advertiser monetization. A post-selloff analysis argued that the market’s reaction may be excessive. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Reddit’s revenue growth has overtaken The Trade Desk’s in a recent comparison, highlighting the company’s continued expansion and improving monetization potential. Reddit vs. The Trade Desk: One’s Revenue Growth Overtook the Other’s Lead
• Neutral Sentiment: RBC Capital reaffirmed its Hold rating, indicating neither a material improvement nor deterioration in its investment view. RBC Capital Reaffirms Their Hold Rating on Reddit
• Negative Sentiment: Investors are concerned that Google’s AI search changes are reducing Reddit’s unpaid search traffic. The company’s move toward a logged-in-only experience could protect monetization but may limit user growth and raise customer-acquisition costs. Reddit Stock Plunges After Google AI Cuts U.S. Traffic
• Negative Sentiment: Several firms reduced expectations: Oppenheimer and Citizens JMP downgraded Reddit to Market Perform, while Citigroup, Cantor Fitzgerald, Truist Financial, B. Riley, Wedbush and Wells Fargo cut their price targets or forecasts. Analyst Rating and Target Changes
• Negative Sentiment: The latest selloff followed quarterly results that beat revenue and earnings estimates but were overshadowed by an unfavorable user outlook, reinforcing concerns about traffic growth and future monetization. Reddit Stock Sinks as Q3 Results Clash With User Outlook

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.