What's Going On With Reddit Stock Tuesday?
Reddit, Inc. (NASDAQ:RDDT) saw slight gains Tuesday as analysts struck a measured tone, backing the stock while dialing back price targets.
Analysts Maintain Ratings, Cut Targets
Truist Securities analyst Youssef Squali reiterated a Buy rating on Reddit, lowering his price target to $260 from $275. Meanwhile, Wells Fargo analyst Alec Brondolo maintained an Equal-Weight rating and cut his target to $149 from $196.
Insider Selling Disclosed In SEC Filings
Recent SEC filings show insider selling by Reddit executives. Chief Technology Officer Christopher Brian Slowe sold 2,000 shares in a transaction executed on Thursday, totaling about $1.28 million at $74.60 per share. Earlier, Chief Operating Officer Jennifer Wong sold 5,660 shares, valued at approximately $5.62 million.
Reddit Technical Analysis
At $138.50, Reddit is trading 2.8% above its 20-day simple moving average (SMA), the stock’s average price over the last 20 sessions, which suggests short-term stabilization after recent selling pressure. At the same time, it’s trading 24.9% below its 100-day SMA, which indicates the intermediate trend is still pointed down.
The moving average convergence divergence (MACD), a trend/momentum measure, is at -4.8022 versus a signal line of -6.3179, a bullish alignment that suggests downside momentum is easing even if the trend hasn’t fully repaired. The death cross in March (50-day SMA falling below the 200-day SMA) is still an overhead technical headwind, often consistent with rallies facing supply.
Over the last 12 months, the stock is up 50.35%, which is backward-looking and shows the name has still delivered big swings despite the current drawdown. Within the 52-week range ($79.75 to $282.95), the stock is well off the highs, which suggests the market is still repricing expectations after last year’s peak.
- Key Resistance: $147.50 — an area where recent rebounds have tended to stall.
- Key Support: $131.50 — a level where buyers have recently shown up to defend pullbacks.
Reddit Earnings & Analyst Outlook
Looking further out, the next major catalyst for the stock arrives with the April 30, 2026 (estimated) earnings report.
- EPS Estimate: 59 cents (Up from 13 cents)
- Revenue Estimate: $609.74 million (Up from $392.36 million)
- Valuation: P/E of 52.8x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $234.65. Recent analyst moves include:
- Wells Fargo: Equal-Weight (Lowers Target to $149.00) (April 7)
- Truist Securities: Buy (Lowers Target to $260.00) (April 7)
- B of A Securities: Neutral (Lowers Target to $175.00) (April 2)
Reddit Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Reddit, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 15.69) — Trading at a steep premium relative to peers.
- Growth: Strong (Score: 98.4) — High growth potential indicated by strong metrics.
- Momentum: Weak (Score: 16.12) — Stock is underperforming the broader market.
The Verdict: Reddit’s Benzinga Edge signal reveals a mixed profile with weak value and momentum scores, but strong growth potential. This indicates that while the stock may be overvalued, its growth metrics suggest future upside if managed effectively.
Reddit Top ETF Exposure
- Adaptive Alpha Opportunities ETF (NYSE:AGOX): 3.51% Weight
- O’Shares Global Internet Giants ETF (NYSE:OGIG): 2.60% Weight
- Renaissance IPO ETF (NYSE:IPO): 9.85% Weight
Significance: Because RDDT carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Reddit Price Action
RDDT Price Action: Reddit shares were up 1.06% at $139.81 at the time of publication on Tuesday, according to Benzinga Pro data.
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