Reddit (NYSE:RDDT) Rating Lowered to In-Line at Evercore

Posted by Stanley Muller on Nov 2nd, 2026

Reddit (NYSE:RDDT – Get Free Report) was downgraded by stock analysts at Evercore from an “outperform” rating to an “in-line” rating in a note issued to investors on Monday, Briefing.com reports. They presently have a $120.00 target price on the stock. Evercore‘s price objective suggests a potential upside of 30.80% from the stock’s previous close.

A number of other equities analysts also recently weighed in on the company. Deutsche Bank Aktiengesellschaft set a $200.00 price target on Reddit in a research report on Friday, July 31st. UBS Group reaffirmed a “buy” rating on shares of Reddit in a research report on Friday. Weiss Ratings reissued a “hold (c)” rating on shares of Reddit in a report on Wednesday, August 5th. Truist Financial reduced their price target on Reddit from $275.00 to $210.00 and set a “buy” rating for the company in a research note on Friday. Finally, Cantor Fitzgerald decreased their price objective on Reddit from $170.00 to $120.00 and set a “neutral” rating on the stock in a report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and fourteen have given a Hold rating to the company. According to MarketBeat, Reddit presently has a consensus rating of “Moderate Buy” and a consensus price target of $187.77.

Get Our Latest Stock Analysis on RDDT

Reddit Trading Up 0.0%

Shares of RDDT opened at $91.74 on Monday. The company has a market cap of $17.65 billion, a price-to-earnings ratio of 18.72, a PEG ratio of 0.42 and a beta of 2.05. Reddit has a 1-year low of $89.28 and a 1-year high of $263.50. The company’s fifty day simple moving average is $150.37 and its 200 day simple moving average is $160.26.

Reddit (NYSE:RDDT – Get Free Report) last announced its quarterly earnings results 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 32.10% and a return on equity of 30.57%. The firm had revenue of $894.96 million during the quarter, compared to analysts’ expectations of $874.91 million. During the same quarter last year, the company posted $0.80 earnings per share. The company’s revenue for the quarter was up 53.0% compared to the same quarter last year. As a group, research analysts forecast that Reddit will post 5.28 earnings per share for the current year.

Insider Buying and Selling at Reddit

In other Reddit news, COO Jennifer L. Wong sold 60,000 shares of the business’s stock in a transaction that occurred on Wednesday, October 14th. The shares were sold at an average price of $150.55, for a total transaction of $9,033,000.00. Following the sale, the chief operating officer directly owned 1,012,226 shares of the company’s stock, valued at $152,390,624.30. The trade was a 5.60% 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 A. Sauerberg sold 5,128 shares of the firm’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the transaction, the director directly owned 27,087 shares of the company’s stock, valued at approximately $4,331,753.04. This represents a 15.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 306,052 shares of company stock valued at $49,754,523. 28.48% of the stock is currently owned by corporate insiders.

Institutional Trading of Reddit

Several large investors have recently modified their holdings of RDDT. Wellington Management Group LLP boosted its position in Reddit by 21.8% in 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 during the last quarter. State Street Corp increased its holdings in shares of Reddit by 8.7% in the second quarter. State Street Corp now owns 2,979,587 shares of the company’s stock worth $517,197,000 after purchasing an additional 237,523 shares during the last quarter. Moore Capital Management LP boosted its position in shares of Reddit by 611.4% during the 2nd quarter. Moore Capital Management LP now owns 12,577 shares of the company’s stock valued at $2,183,000 after acquiring an additional 10,809 shares during the last quarter. Light Street Capital Management LLC bought a new position in shares of Reddit in the 2nd quarter valued at about $31,678,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab grew its position in Reddit by 102.3% in the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 19,120 shares of the company’s stock worth $3,319,000 after acquiring an additional 9,670 shares in the last quarter.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

Positive Sentiment: Despite weaker U.S. daily active-user trends, Reddit’s revenue increased 53% year over year and advertising revenue per user rose substantially, suggesting strong engagement and advertiser monetization. A post-selloff analysis argued that the market’s reaction may be excessive. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
Positive Sentiment: Reddit’s revenue growth has overtaken The Trade Desk’s in a recent comparison, highlighting the company’s continued expansion and improving monetization potential. Reddit vs. The Trade Desk: One’s Revenue Growth Overtook the Other’s Lead
Neutral Sentiment: RBC Capital reaffirmed its Hold rating, indicating neither a material improvement nor deterioration in its investment view. RBC Capital Reaffirms Their Hold Rating on Reddit
Negative Sentiment: Investors are concerned that Google’s AI search changes are reducing Reddit’s unpaid search traffic. The company’s move toward a logged-in-only experience could protect monetization but may limit user growth and raise customer-acquisition costs. Reddit Stock Plunges After Google AI Cuts U.S. Traffic
Negative Sentiment: Several firms reduced expectations: Oppenheimer and Citizens JMP downgraded Reddit to Market Perform, while Citigroup, Cantor Fitzgerald, Truist Financial, B. Riley, Wedbush and Wells Fargo cut their price targets or forecasts. Analyst Rating and Target Changes
Negative Sentiment: The latest selloff followed quarterly results that beat revenue and earnings estimates but were overshadowed by an unfavorable user outlook, reinforcing concerns about traffic growth and future monetization. Reddit Stock Sinks as Q3 Results Clash With User Outlook

About Reddit

(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.