Reddit (NYSE:RDDT) Downgraded to “Hold” Rating by Wall Street Zen

Reddit (NYSE:RDDT) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Wednesday.

RDDT has been the subject of a number of other reports. JPMorgan Chase & Co. cut their price target on Reddit from $227.00 to $200.00 and set a “neutral” rating for the company in a research note on Friday, February 6th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Reddit in a research note on Monday, December 29th. Needham & Company LLC reaffirmed a “buy” rating and set a $300.00 price target on shares of Reddit in a research note on Friday, February 6th. Truist Financial cut their price target on Reddit from $275.00 to $260.00 and set a “buy” rating for the company in a research note on Tuesday. Finally, The Goldman Sachs Group cut their price target on Reddit from $236.00 to $206.00 and set a “neutral” rating for the company in a research note on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat, Reddit currently has a consensus rating of “Moderate Buy” and a consensus price target of $238.46.

Reddit Price Performance

RDDT opened at $141.13 on Wednesday. Reddit has a fifty-two week low of $86.88 and a fifty-two week high of $282.95. The business has a 50-day moving average of $144.41 and a 200-day moving average of $191.84. The company has a market capitalization of $26.96 billion, a PE ratio of 53.87, a price-to-earnings-growth ratio of 0.99 and a beta of 2.40.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, topping analysts’ consensus estimates of $0.96 by $0.28. Reddit had a return on equity of 20.89% and a net margin of 24.05%.The company had revenue of $725.61 million during the quarter, compared to the consensus estimate of $665.80 million. During the same period last year, the business earned $0.36 EPS. The business’s quarterly revenue was up 69.7% on a year-over-year basis. On average, equities research analysts expect that Reddit will post 1.12 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, COO Jennifer L. Wong sold 33,507 shares of the stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $143.41, for a total transaction of $4,805,238.87. Following the transaction, the chief operating officer owned 1,088,451 shares of the company’s stock, valued at approximately $156,094,757.91. This represents a 2.99% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CTO Christopher Brian Slowe sold 19,036 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $144.05, for a total value of $2,742,135.80. Following the transaction, the chief technology officer directly owned 185,057 shares in the company, valued at approximately $26,657,460.85. This represents a 9.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders acquired 61,000 shares of company stock worth $8,870,815 and sold 318,235 shares worth $54,124,005. Insiders own 34.25% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in RDDT. Raiffeisen Bank International AG bought a new stake in Reddit during the 3rd quarter valued at approximately $25,000. GW&K Investment Management LLC bought a new stake in Reddit during the 3rd quarter valued at approximately $30,000. Cornerstone Planning Group LLC boosted its stake in Reddit by 13,500.0% during the 3rd quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock valued at $31,000 after purchasing an additional 135 shares during the period. LOM Asset Management Ltd bought a new stake in Reddit during the 4th quarter valued at approximately $33,000. Finally, Noble Wealth Management PBC bought a new stake in Reddit during the 4th quarter valued at approximately $34,000.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Strong user growth and ad momentum underpin revenue outlook and give investors confidence in continued top-line acceleration. Reddit Benefits From Strong User Growth: A Sign for More Upside?
• Positive Sentiment: CEO Steve Huffman said AI could materially boost engineer productivity (50%–100% or more), signaling management expects to accelerate product development and monetization efforts — a bullish catalyst if execution follows. Reddit CEO Steve Huffman says AI could make engineers ‘50%, 100% or even 10x more productive’
• Neutral Sentiment: Wells Fargo initiated coverage with an Equal Weight rating and a $149 price target — a modest near-term endorsement but not a bullish upgrade. Wells Fargo coverage / Equal Weight $149 PT
• Neutral Sentiment: Truist trimmed its price target from $275 to $260 but kept a Buy rating — lowers some upside expectations yet still reflects strong longer-term conviction. Truist lowers price target to $260
• Neutral Sentiment: Recent coverage pieces and market write-ups note the stock’s outperformance; these help trading momentum but provide little new fundamental information. Reddit Inc. (RDDT) Outperforms Broader Market
• Neutral Sentiment: Reminder of Reddit’s IPO pricing at the top of its range (historical context) — supports the firm’s capital raise narrative but is not a fresh operational catalyst. Reddit prices IPO at top of indicated range
• Negative Sentiment: A new lawsuit challenges Reddit’s ability to monetize user content and to strike AI deals using that content, creating legal and business-model uncertainty that could pressure sentiment if it escalates. Reddit Lawsuit Tests Limits Of User Content Monetization And AI Deals

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.