Reddit (NYSE:RDDT) Price Target Cut to $260.00 by Analysts at Truist Financial

Reddit (NYSE:RDDT) had its price target trimmed by Truist Financial from $275.00 to $260.00 in a research note issued to investors on Tuesday morning,Benzinga reports. They currently have a buy rating on the stock.

A number of other analysts have also recently commented on RDDT. Morgan Stanley set a $240.00 price objective on shares of Reddit in a research report on Friday, February 6th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $285.00 price objective on shares of Reddit in a research report on Tuesday, January 20th. Wells Fargo & Company set a $196.00 price objective on shares of Reddit in a research report on Monday, February 9th. UBS Group set a $265.00 price objective on shares of Reddit in a research report on Tuesday, January 13th. Finally, JPMorgan Chase & Co. lowered their price objective on shares of Reddit from $227.00 to $200.00 and set a “neutral” rating for the company in a research report on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $238.46.

Reddit Stock Performance

Shares of Reddit stock opened at $141.13 on Tuesday. The firm has a fifty day moving average of $144.41 and a two-hundred day moving average of $191.84. The stock has a market capitalization of $26.96 billion, a price-to-earnings ratio of 53.87, a PEG ratio of 0.99 and a beta of 2.40. Reddit has a 52 week low of $86.88 and a 52 week high of $282.95.

Reddit (NYSE:RDDT) last issued its earnings results on Thursday, February 5th. The company reported $1.24 EPS for the quarter, beating the consensus estimate of $0.96 by $0.28. The company had revenue of $725.61 million during the quarter, compared to analysts’ expectations of $665.80 million. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The business’s revenue for the quarter was up 69.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.36 EPS. As a group, research analysts forecast that Reddit will post 1.12 EPS for the current fiscal year.

Insider Transactions at Reddit

In other Reddit news, CTO Christopher Brian Slowe sold 19,036 shares of the stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $144.05, for a total transaction of $2,742,135.80. Following the completion of the transaction, the chief technology officer owned 185,057 shares in the company, valued at approximately $26,657,460.85. This represents a 9.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, 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 value 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 trade represents a 2.99% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have bought 61,000 shares of company stock worth $8,870,815 and have sold 318,235 shares worth $54,124,005. Corporate insiders own 34.25% of the company’s stock.

Hedge Funds Weigh In On Reddit

A number of large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in Reddit by 8.9% during the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock worth $3,062,339,000 after purchasing an additional 1,083,540 shares in the last quarter. Capital World Investors bought a new position in Reddit during the 4th quarter worth about $1,293,258,000. State Street Corp increased its holdings in Reddit by 6.0% during the 4th quarter. State Street Corp now owns 2,631,332 shares of the company’s stock worth $604,864,000 after purchasing an additional 149,401 shares in the last quarter. Geode Capital Management LLC increased its holdings in Reddit by 4.7% during the 4th quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock worth $546,789,000 after purchasing an additional 106,821 shares in the last quarter. Finally, Morgan Stanley increased its holdings in Reddit by 11.4% during the 4th quarter. Morgan Stanley now owns 2,372,443 shares of the company’s stock worth $545,354,000 after purchasing an additional 242,709 shares in the last quarter.

Key Stories Impacting Reddit

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

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.