Reddit Inc. (NYSE:RDDT) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Reddit Inc. has received an average analyst recommendation of “Moderate Buy” from 28 brokerages, with a 12-month price target averaging $209.50.
• CEO Steve Ladd Huffman recently sold 18,000 shares at approximately $223.41 each, resulting in a total transaction value of about $4 million, reducing his ownership stake by 3.51%.
• The company's stock reached a high of $282.95 over the past year and reported a 77.9% revenue increase year-over-year in its last quarterly earnings.

Shares of Reddit Inc. (NYSE:RDDT - Get Free Report) have received an average rating of "Moderate Buy" from the twenty-eight brokerages that are currently covering the stock, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation, ten have assigned a hold recommendation, fourteen have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average 12 month price objective among analysts that have covered the stock in the last year is $209.50.

Several research analysts have issued reports on the company. Morgan Stanley increased their price target on Reddit from $170.00 to $230.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Wolfe Research upgraded Reddit to an "outperform" rating in a report on Sunday, August 3rd. Zacks Research lowered Reddit from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 30th. The Goldman Sachs Group reiterated a "neutral" rating and issued a $236.00 price target on shares of Reddit in a report on Tuesday. Finally, Robert W. Baird increased their price target on Reddit from $177.00 to $240.00 and gave the stock a "neutral" rating in a report on Thursday, September 25th.

Insider Transactions at Reddit

In other news, CEO Steve Ladd Huffman sold 18,000 shares of the firm's stock in a transaction that occurred on Friday, August 29th. The stock was sold at an average price of $223.41, for a total value of $4,021,380.00. Following the transaction, the chief executive officer owned 494,104 shares in the company, valued at $110,387,774.64. This trade represents a 3.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CTO Christopher Brian Slowe sold 28,000 shares of the firm's stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $218.94, for a total value of $6,130,320.00. Following the completion of the transaction, the chief technology officer owned 222,534 shares in the company, valued at $48,721,593.96. This represents a 11.18% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 364,500 shares of company stock worth $82,549,691 in the last three months. Insiders own 34.25% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of RDDT. CWM LLC lifted its holdings in shares of Reddit by 100.0% in the first quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after purchasing an additional 128 shares in the last quarter. Stone House Investment Management LLC bought a new position in shares of Reddit in the first quarter valued at approximately $31,000. Financial Perspectives Inc bought a new position in shares of Reddit in the second quarter valued at approximately $34,000. Geneos Wealth Management Inc. lifted its holdings in shares of Reddit by 344.6% in the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after purchasing an additional 286 shares in the last quarter. Finally, GAMMA Investing LLC lifted its holdings in shares of Reddit by 8,650.0% in the third quarter. GAMMA Investing LLC now owns 175 shares of the company's stock valued at $40,000 after purchasing an additional 173 shares in the last quarter.

Reddit Price Performance

Shares of Reddit stock opened at $198.96 on Friday. Reddit has a one year low of $75.94 and a one year high of $282.95. The stock's 50-day moving average is $228.80 and its 200 day moving average is $161.72. The firm has a market cap of $37.24 billion, a price-to-earnings ratio of 180.87, a PEG ratio of 3.07 and a beta of 2.23.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $0.45 EPS for the quarter, beating the consensus estimate of $0.20 by $0.25. The company had revenue of $499.63 million for the quarter, compared to analyst estimates of $424.07 million. Reddit had a return on equity of 9.93% and a net margin of 12.97%.The firm's revenue for the quarter was up 77.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.06) EPS. Reddit has set its Q3 2025 guidance at EPS. On average, sell-side analysts expect that Reddit will post 1.12 EPS for the current fiscal year.

Reddit Company Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.

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