JPMorgan Chase & Co. Has Lowered Expectations for Reddit (NYSE:RDDT) Stock Price

Reddit (NYSE:RDDT) had its price target lowered by analysts at JPMorgan Chase & Co. from $227.00 to $200.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has a “neutral” rating on the stock. JPMorgan Chase & Co.‘s target price would indicate a potential upside of 43.61% from the company’s previous close.

Other research analysts have also recently issued research reports about the stock. Morgan Stanley set a $240.00 target price on shares of Reddit in a report on Friday. Cantor Fitzgerald cut their price target on shares of Reddit from $240.00 to $170.00 and set a “neutral” rating on the stock in a research report on Friday. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $285.00 price objective on shares of Reddit in a report on Tuesday, January 20th. Zacks Research downgraded Reddit from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 26th. Finally, Bank of America increased their price target on Reddit from $180.00 to $210.00 and gave the company a “neutral” rating in a research report on Friday, October 31st. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $241.31.

Reddit Stock Down 7.8%

Shares of NYSE RDDT opened at $139.27 on Friday. Reddit has a twelve month low of $79.75 and a twelve month high of $282.95. The stock has a market cap of $26.39 billion, a price-to-earnings ratio of 53.16, a P/E/G ratio of 0.97 and a beta of 2.17. The company’s fifty day moving average is $221.22 and its 200-day moving average is $215.15.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.28. Reddit had a return on equity of 22.03% and a net margin of 24.05%.The business had revenue of $725.61 million for the quarter, compared to analysts’ expectations of $665.80 million. During the same quarter in the previous year, the business posted $0.36 EPS. Reddit’s revenue for the quarter was up 69.7% on a year-over-year basis. On average, research analysts anticipate that Reddit will post 1.12 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, COO Jennifer L. Wong sold 27,159 shares of the business’s stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $225.73, for a total value of $6,130,601.07. Following the completion of the sale, the chief operating officer owned 1,157,369 shares of the company’s stock, valued at approximately $261,252,904.37. The trade was a 2.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction dated Friday, January 30th. The stock was sold at an average price of $183.18, for a total transaction of $3,297,240.00. Following the completion of the sale, the chief executive officer owned 448,576 shares of the company’s stock, valued at $82,170,151.68. This trade represents a 3.86% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 523,511 shares of company stock worth $114,237,285 over the last three months. 34.25% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Reddit

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Raiffeisen Bank International AG bought a new position in Reddit in the 3rd quarter valued at approximately $25,000. GW&K Investment Management LLC acquired a new position in shares of Reddit during the third quarter worth $30,000. Cornerstone Planning Group LLC lifted its stake in shares of Reddit by 13,500.0% in the 3rd quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock valued at $31,000 after acquiring an additional 135 shares during the last quarter. LOM Asset Management Ltd acquired a new stake in shares of Reddit during the 4th quarter valued at $33,000. Finally, Financial Perspectives Inc acquired a new stake in shares of Reddit during the 2nd quarter valued at $34,000.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Strong Q4 results and raised guidance — Reddit reported Q4 EPS and revenue above estimates and forecast Q1 revenue above Street expectations, a key reason the stock rallied after the print. Reddit forecasts revenue above estimates as AI fuels ad sales
• Positive Sentiment: $1 billion share buyback announced — management authorized a sizable repurchase program that should support EPS and reduce float over time. Reddit Reports Fourth Quarter and Full Year 2025 Results; Announces $1 Billion Share Repurchase Program
• Positive Sentiment: Analysts reacting — several firms raised price targets and reaffirmed buy ratings after the quarter, signaling continued bullish institutional views. These Analysts Revise Their Forecasts On Reddit Following Q4 Results
• Neutral Sentiment: AI and product roadmap could drive longer-term ad monetization — management highlighted AI search and ad tools as growth drivers, but monetization timelines remain multi-quarter. Reddit looks to AI search as its next big opportunity
• Neutral Sentiment: M&A appetite announced — Reddit told analysts it’s scouting adtech and other buys that either scale across Reddit or grow users; strategic but uncertain near-term impact. Reddit says it’s looking for more acquisitions in adtech and elsewhere
• Negative Sentiment: CEO insider selling reported — recent disclosure of a multi-million-dollar sale by the CEO has been cited as a near-term selling catalyst. Insider Selling: Reddit (NYSE:RDDT) CEO Sells $3,297,240.00 in Stock
• Negative Sentiment: Transparency change: company plans to stop disclosing logged‑in vs. logged‑out user counts in 2026 — investors may view that as reduced visibility into engagement trends. Reddit (RDDT) plans to stop disclosing logged-in and logged-out user numbers in 2026
• Negative Sentiment: Valuation and profit-taking — after the post-earnings jump, some investors appear to be locking in gains amid divergent DCF/valuation views and very high intraday volume, pressuring the share price. Reddit (RDDT) Valuation Check As Shares Lag And DCF Views Sharply Diverge

About Reddit

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.