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

Key Points

• Reddit has a consensus analyst rating of “Moderate Buy”, based on coverage from 31 firms, with 19 buy ratings and 12 holds. The average 1-year price target among recent analyst updates is about $231.79.
• Recent analyst commentary has been mostly constructive, with firms like Truist, Oppenheimer, and Piper Sandler maintaining or setting bullish price targets, while UBS remained more mixed and Rothschild & Co Redburn was notably more cautious.
• Reddit’s latest quarterly results were strong, with EPS of $1.01 versus expectations of $0.62 and revenue up 69.1% year over year to $663.41 million, reinforcing the company’s growth narrative despite some recent insider selling and stock volatility.

Reddit Inc. (NYSE:RDDT - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the thirty-one research firms that are presently covering the firm, Marketbeat Ratings reports. Twelve research analysts have rated the stock with a hold recommendation and nineteen have issued a buy recommendation on the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $231.7931.

Several equities research analysts have commented on the stock. Truist Financial set a $265.00 target price on shares of Reddit in a research note on Friday, May 1st. UBS Group reissued a "mixed" rating on shares of Reddit in a research report on Thursday, July 9th. Rothschild & Co Redburn set a $110.00 price target on shares of Reddit in a report on Monday, April 27th. Oppenheimer restated an "outperform" rating and issued a $225.00 price objective on shares of Reddit in a research report on Friday, May 1st. Finally, Piper Sandler restated an "overweight" rating and issued a $215.00 price objective on shares of Reddit in a research report on Thursday, July 9th.

Insider Buying and Selling at Reddit

In other news, CEO Steve Ladd Huffman sold 18,000 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $178.26, for a total transaction of $3,208,680.00. Following the sale, the chief executive officer owned 373,814 shares of the company's stock, valued at $66,636,083.64. This trade represents a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of Reddit stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $158.52, for a total value of $6,208,752.84. Following the transaction, the chief operating officer owned 1,088,451 shares in the company, valued at $172,541,252.52. This trade represents a 3.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 169,141 shares of company stock valued at $28,680,845. Company insiders own 28.48% of the company's stock.

Institutional Trading of Reddit

Several hedge funds have recently bought and sold shares of the stock. Sunbelt Securities Inc. boosted its holdings in shares of Reddit by 87.5% in the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company's stock valued at $26,000 after buying an additional 91 shares during the period. Ascentis Independent Advisors bought a new stake in Reddit in the 1st quarter valued at $30,000. LOM Asset Management Ltd bought a new stake in Reddit in the 4th quarter valued at $33,000. Noble Wealth Management PBC acquired a new position in Reddit in the 4th quarter worth $34,000. Finally, Beacon Investment Advisory Services Inc. acquired a new position in Reddit in the 2nd quarter worth $35,000.

Reddit Trading Down 1.8%

Reddit stock opened at $181.91 on Friday. The firm has a market capitalization of $35.02 billion, a P/E ratio of 51.97 and a beta of 1.93. The business has a 50-day moving average of $172.78 and a 200-day moving average of $169.74. Reddit has a 1 year low of $119.27 and a 1 year high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, beating analysts' consensus estimates of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The business had revenue of $663.41 million for the quarter, compared to the consensus estimate of $607.74 million. During the same period last year, the company posted $0.13 EPS. Reddit's revenue for the quarter was up 69.1% on a year-over-year basis. Research analysts anticipate that Reddit will post 4.85 EPS for the current fiscal year.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Wedbush initiated coverage on Reddit with an Outperform rating and a $250 price target, signaling strong confidence in the company’s long-term monetization potential. Benzinga article on Wedbush coverage
• Positive Sentiment: Analysts highlighted Reddit’s AI initiative, including partnerships, platform upgrades, and ad tools, as a growing driver of revenue and engagement. Zacks article on Reddit AI initiative
• Positive Sentiment: Jefferies said Reddit could beat second-quarter revenue and EBITDA expectations thanks to strong ad checks and improving user growth, which would support the bullish earnings narrative. Proactive Investors article on earnings beat potential
• Positive Sentiment: Several reports suggested Reddit stock may be undervalued relative to its AI and ad-growth outlook, with one piece citing as much as 47% upside based on those themes. Yahoo Finance article on undervaluation
• Neutral Sentiment: One article noted that analysts are still mixed on Reddit and other communication-services names, suggesting the stock may remain volatile as sentiment varies. The Globe and Mail article on conflicted analysts
• Negative Sentiment: Reddit also saw coverage around a recent selloff and questions about why the stock fell more than the broader market, indicating some traders are still taking profits after a strong run. Zacks article on recent decline

Reddit Company Profile

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.

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