Reddit (NYSE:RDDT) Stock Price Target Cut by The Goldman Sachs Group

Reddit (NYSE:RDDT) had its target price decreased by research analysts at The Goldman Sachs Group from $215.00 to $140.00 in a research note issued on Friday. The Goldman Sachs Group‘s price objective suggests a potential upside of 52.84% from the company’s current price.

A number of other brokerages also recently weighed in on RDDT. Jefferies Financial Group set a $250.00 target price on shares of Reddit in a report on Friday, July 10th. Truist Financial decreased their price objective on shares of Reddit from $275.00 to $210.00 and set a “buy” rating for the company in a research report 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 research note on Friday. JPMorgan Chase & Co. dropped their target price on shares of Reddit from $185.00 to $150.00 and set a “neutral” rating on the stock in a report on Friday. Finally, Deutsche Bank Aktiengesellschaft cut their target price on shares of Reddit from $200.00 to $165.00 and set a “buy” rating for the company in a research note on Friday. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and fifteen have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $180.91.

Reddit Price Performance

RDDT stock traded down $0.13 during mid-day trading on Friday, reaching $91.60. The company had a trading volume of 8,786,213 shares, compared to its average volume of 5,539,729. The stock has a 50 day simple moving average of $150.37 and a two-hundred day simple moving average of $160.26. The company has a market capitalization of $17.62 billion, a price-to-earnings ratio of 18.65, a PEG ratio of 0.42 and a beta of 2.05. Reddit has a 52 week low of $89.28 and a 52 week high of $263.50.

Reddit (NYSE:RDDT) last announced its quarterly earnings data on Thursday, October 29th. The company reported $1.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. The company had revenue of $894.96 million for the quarter, compared to analysts’ expectations of $874.91 million. Reddit had a return on equity of 30.57% and a net margin of 32.10%. The business’s revenue was up 53.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.80 EPS. On average, equities analysts predict that Reddit will post 5.28 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Steve Huffman sold 18,000 shares of the firm’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $178.16, for a total transaction of $3,206,880.00. Following the transaction, the chief executive officer directly owned 373,814 shares of the company’s stock, valued at approximately $66,598,702.24. This trade represents a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of Reddit stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total transaction of $820,069.76. Following the completion of the sale, the director owned 27,087 shares of the company’s stock, valued at approximately $4,331,753.04. The trade was 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 90 days. Company insiders own 28.48% of the company’s stock.

Institutional Investors Weigh In On Reddit

A number of large investors have recently bought and sold shares of RDDT. Commonwealth Equity Services LLC increased its stake in Reddit by 7.5% in the third quarter. Commonwealth Equity Services LLC now owns 38,368 shares of the company’s stock valued at $5,465,000 after acquiring an additional 2,682 shares during the last quarter. TFB Advisors LLC raised its position in Reddit by 102.7% during the third quarter. TFB Advisors LLC now owns 2,789 shares of the company’s stock valued at $397,000 after purchasing an additional 1,413 shares in the last quarter. Chicago Partners Investment Group LLC bought a new stake in Reddit during the third quarter worth $362,000. Rakuten Investment Management Inc. bought a new stake in Reddit during the third quarter worth $3,611,000. Finally, Provenance Wealth Advisors LLC bought a new stake in Reddit during the third quarter worth $775,000.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s latest quarterly results showed substantial operating momentum: revenue rose 53% year over year to approximately $895 million, while earnings per share exceeded analyst expectations. Advertising engagement and higher average revenue per user could support the company’s long-term monetization outlook. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Some investors view the decline as excessive relative to Reddit’s revenue growth and profitability, arguing that fears over Google’s AI search changes may already be reflected in the valuation. Reddit Stock Crashes Again: Is the Stock a Buy on the Dip or a Value Trap?
• Neutral Sentiment: A valuation comparison with Spotify highlights Reddit as a potential value opportunity, but the conclusion depends on whether investors prioritize Reddit’s faster growth or Spotify’s more established user and revenue trends. RDDT vs. SPOT: Which Stock Is the Better Value Option?
• Negative Sentiment: The primary pressure is a worsening user-growth outlook. Google’s AI search changes appear to be reducing traffic to Reddit, particularly in the U.S., while management’s push toward logged-in users could protect monetization but make it harder and more expensive to attract new users. Reddit Stock Plunges After Google AI Cuts U.S. Traffic
• Negative Sentiment: Several firms reduced their ratings or price targets, including JPMorgan, Evercore, Loop Capital, Oppenheimer, Citigroup, Cantor Fitzgerald, Truist, Wells Fargo and Wedbush. Although many revised targets remain above the current market level, the broad analyst caution is weighing on confidence in RDDT’s near-term 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.