Reddit (NYSE:RDDT) Stock Rating Lowered by Evercore

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

A number of other analysts have also recently weighed in on the company. Bank of America reaffirmed a “neutral” rating on shares of Reddit in a research report on Friday. Raymond James Financial reissued a “strong-buy” rating and set a $205.00 price objective on shares of Reddit in a report on Monday, August 17th. Needham & Company LLC cut their price objective on Reddit from $300.00 to $150.00 and set a “buy” rating on the stock in a research note on Friday. BNP Paribas Exane initiated coverage on Reddit in a report on Friday, September 18th. They issued a “neutral” rating and a $180.00 target price for the company. Finally, JPMorgan Chase & Co. dropped their price target on shares of Reddit from $200.00 to $185.00 and set a “neutral” rating on the stock in a research report on Friday, July 31st. Two research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and fourteen have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $187.77.

Reddit Stock Up 0.0%

RDDT stock opened at $91.74 on Monday. The company has a market capitalization of $17.65 billion, a price-to-earnings ratio of 18.72, a P/E/G ratio of 0.42 and a beta of 2.05. Reddit has a 12 month low of $89.28 and a 12 month high of $263.50. The firm has a 50 day moving average of $150.37 and a two-hundred day moving average of $160.26.

Reddit (NYSE:RDDT) last released its quarterly earnings results 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. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The business had revenue of $894.96 million for the quarter, compared to the consensus estimate of $874.91 million. During the same quarter last year, the firm earned $0.80 EPS. Reddit’s revenue for the quarter was up 53.0% on a year-over-year basis. On average, research analysts expect that Reddit will post 5.28 EPS for the current fiscal year.

Insider Activity at Reddit

In other Reddit news, Director Robert Sauerberg sold 5,128 shares of Reddit stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the completion of the transaction, the director owned 27,087 shares in the company, valued at approximately $4,331,753.04. The trade was a 15.92% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Jennifer Wong sold 60,000 shares of Reddit stock in a transaction on Wednesday, October 14th. The shares were sold at an average price of $150.55, for a total value of $9,033,000.00. Following the completion of the transaction, the chief operating officer owned 1,012,226 shares of the company’s stock, valued at approximately $152,390,624.30. The trade was a 5.60% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 306,052 shares of company stock valued at $49,754,523 in the last three months. Corporate insiders own 28.48% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Senvest Management LLC bought a new position in shares of Reddit during the first quarter worth about $48,392,000. Robeco Institutional Asset Management B.V. lifted its stake in Reddit by 74.6% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock valued at $115,243,000 after acquiring an additional 345,735 shares in the last quarter. Wellington Management Group LLP lifted its stake in Reddit by 21.8% in the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock valued at $271,572,000 after acquiring an additional 280,030 shares in the last quarter. Styrax Capital LP acquired a new position in Reddit during the 2nd quarter worth approximately $43,395,000. Finally, State Street Corp boosted its position in Reddit by 8.7% during the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company’s stock worth $517,197,000 after acquiring an additional 237,523 shares during the last quarter.

Reddit News Roundup

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.