Reddit (NYSE:RDDT) Sets New 1-Year Low on Analyst Downgrade

Posted by Francis Steltz on Oct 30th, 2026

Reddit Inc. (NYSE:RDDT – Get Free Report)’s stock price reached a new 52-week low during trading on Friday after B. Riley Financial lowered their price target on the stock from $270.00 to $190.00. B. Riley Financial currently has a buy rating on the stock. Reddit traded as low as $95.45 and last traded at $98.2510, with a volume of 5,954,905 shares traded. The stock had previously closed at $129.60.

A number of other research analysts have also issued reports on RDDT. UBS Group reiterated a “buy” rating on shares of Reddit in a report on Friday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Reddit in a research report on Wednesday, August 5th. Morgan Stanley lowered their price objective on Reddit from $240.00 to $210.00 and set an “overweight” rating for the company in a research report on Friday, August 21st. Cantor Fitzgerald cut their target price on shares of Reddit from $170.00 to $120.00 and set a “neutral” rating on the stock in a research note on Friday. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $180.00 target price on shares of Reddit in a report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and thirteen have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $207.52.

Read Our Latest Stock Report on Reddit

Insiders Place Their Bets

In other news, CEO Steve Huffman sold 17,308 shares of the company’s stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $158.57, for a total transaction of $2,744,529.56. Following the completion of the transaction, the chief executive officer directly owned 336,432 shares of the company’s stock, valued at approximately $53,348,022.24. This represents a 4.89% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of the stock in a transaction dated Tuesday, August 25th. The shares were 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 306,052 shares of company stock valued at $49,754,523 in the last ninety days. Insiders own 28.48% of the company’s stock.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

Positive Sentiment: Reddit reported third-quarter adjusted earnings of $1.40 per share and revenue of approximately $895 million, exceeding analyst estimates of $1.33 and $875 million, respectively. Revenue increased 53% year over year, while earnings rose from $0.80 a year earlier. Reddit Inc. Q3 Earnings and Revenues Beat Estimates
Positive Sentiment: The strong quarterly performance demonstrates continued monetization progress, particularly in advertising, and provides some support for Reddit’s long-term growth story. Reddit Reports Third Quarter 2026 Results
Neutral Sentiment: Reddit said it may test a primarily logged-in experience to reduce data scraping and address declining referrals from Google search. The strategy could improve user registration and monetization over time, but it risks reducing traffic from casual and logged-out visitors in the near term. Reddit Posts Third-Quarter Earnings and Plans Login Requirement Test
Negative Sentiment: Fourth-quarter guidance was weaker than expected, overshadowing the earnings and revenue beats. Investors are also concerned about slowing daily-user growth, declining Google search traffic, and the impact of AI-powered search on Reddit’s ability to attract visitors. Reddit Shares Tumble on Weak Guidance
Negative Sentiment: Analysts responded by cutting their forecasts and price targets. Cantor Fitzgerald lowered its target from $170 to $120, while Bernstein reduced its target from $180 to $120; Oppenheimer and Citizens JMP downgraded the shares to “market perform.” These actions signal reduced confidence in Reddit’s near-term growth trajectory. Reddit Analysts Slash Their Forecasts Following Q3 Earnings

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of RDDT. Senvest Management LLC purchased a new stake in Reddit in the first quarter valued at $48,392,000. Robeco Institutional Asset Management B.V. grew its holdings in shares of Reddit by 74.6% during the third quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock worth $115,243,000 after purchasing an additional 345,735 shares during the last quarter. Wellington Management Group LLP increased its position in shares of Reddit by 21.8% during the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock worth $271,572,000 after purchasing an additional 280,030 shares in the last quarter. Styrax Capital LP acquired a new stake in shares of Reddit during the second quarter worth about $43,395,000. Finally, State Street Corp lifted its holdings in shares of Reddit by 8.7% in the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company’s stock valued at $517,197,000 after purchasing an additional 237,523 shares during the last quarter.

Reddit Trading Down 25.4%

The firm has a market capitalization of $18.60 billion, a PE ratio of 22.59, a P/E/G ratio of 0.62 and a beta of 2.05. The company has a fifty day moving average price of $151.54 and a two-hundred day moving average price of $161.02.

Reddit (NYSE:RDDT – Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The company reported $1.40 EPS for the quarter, beating analysts’ consensus estimates of $1.33 by $0.07. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The company had revenue of $894.96 million for the quarter, compared to analyst estimates of $874.91 million. During the same period in the previous year, the business posted $0.80 earnings per share. Reddit’s quarterly revenue was up 53.0% on a year-over-year basis. As a group, equities research analysts predict that Reddit Inc. will post 5.28 earnings per share for the current year.

Reddit Company Profile

(Get Free Report)

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.