Reddit (NYSE:RDDT) Coverage Initiated at Argus

Key Points

• Analysts at Argus have initiated coverage of Reddit (NYSE:RDDT) with a "buy" rating and a price target of $250.00, indicating a potential upside of 1.46% from its current price.
• Reddit's recent earnings report showed a significant revenue increase to $499.63 million for the quarter, surpassing analysts' expectations and marking a 77.9% year-over-year growth.
• Despite a positive outlook, the stock has mixed ratings from analysts; one has rated it a sell, nine have given it a hold rating, while fourteen have issued buy ratings.

Argus assumed coverage on shares of Reddit (NYSE:RDDT - Free Report) in a research report report published on Monday morning, Marketbeat reports. The brokerage issued a buy rating and a $250.00 price objective on the stock.

A number of other research analysts have also weighed in on RDDT. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $212.00 target price on shares of Reddit in a report on Friday, August 1st. JMP Securities boosted their price objective on Reddit from $180.00 to $225.00 and gave the stock a "market outperform" rating in a report on Friday, August 1st. Robert W. Baird boosted their price objective on Reddit from $120.00 to $151.00 and gave the stock a "neutral" rating in a report on Tuesday, July 8th. Raymond James Financial reissued a "strong-buy" rating and set a $225.00 price objective (up previously from $175.00) on shares of Reddit in a report on Friday, August 1st. Finally, Roth Capital boosted their price objective on Reddit from $130.00 to $145.00 and gave the stock a "neutral" rating in a report on Monday, July 21st. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $175.38.

Reddit Price Performance

RDDT stock traded down $1.3650 during mid-day trading on Monday, reaching $217.2850. 7,511,511 shares of the company traded hands, compared to its average volume of 7,906,592. The company has a market capitalization of $40.67 billion, a P/E ratio of 197.53, a P/E/G ratio of 3.46 and a beta of 2.30. Reddit has a 52-week low of $55.02 and a 52-week high of $253.14. The company has a fifty day moving average price of $167.83 and a 200-day moving average price of $142.16.

Reddit (NYSE:RDDT - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $0.45 earnings per share for the quarter, beating analysts' consensus estimates of $0.20 by $0.25. The business had revenue of $499.63 million during 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 company's quarterly revenue was up 77.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.06) EPS. Reddit has set its Q3 2025 guidance at EPS. As a group, analysts forecast that Reddit will post 1.12 EPS for the current year.

Insider Transactions at Reddit

In related news, CTO Christopher Brian Slowe sold 16,000 shares of the business's stock in a transaction that occurred on Tuesday, July 22nd. The stock was sold at an average price of $145.58, for a total value of $2,329,280.00. Following the completion of the sale, the chief technology officer owned 241,373 shares in the company, valued at $35,139,081.34. The trade was a 6.22% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CAO Michelle Marie Reynolds sold 3,500 shares of the business's stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $202.60, for a total value of $709,100.00. Following the completion of the sale, the chief accounting officer owned 34,368 shares of the company's stock, valued at $6,962,956.80. The trade was a 9.24% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 363,364 shares of company stock worth $53,557,742. 34.25% of the stock is owned by corporate insiders.

Institutional Trading of Reddit

A number of hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. lifted its position in Reddit by 6.3% in the 2nd quarter. Vanguard Group Inc. now owns 10,837,215 shares of the company's stock worth $1,631,759,000 after buying an additional 638,663 shares during the last quarter. Alliancebernstein L.P. lifted its position in Reddit by 103.0% in the first quarter. Alliancebernstein L.P. now owns 5,659,990 shares of the company's stock valued at $593,733,000 after purchasing an additional 2,871,232 shares during the last quarter. T. Rowe Price Investment Management Inc. lifted its position in Reddit by 10.6% in the first quarter. T. Rowe Price Investment Management Inc. now owns 4,073,939 shares of the company's stock valued at $427,357,000 after purchasing an additional 389,761 shares during the last quarter. JPMorgan Chase & Co. lifted its position in Reddit by 7.5% in the second quarter. JPMorgan Chase & Co. now owns 2,051,175 shares of the company's stock valued at $308,846,000 after purchasing an additional 143,680 shares during the last quarter. Finally, State Street Corp lifted its position in Reddit by 138.5% in the second quarter. State Street Corp now owns 2,030,139 shares of the company's stock valued at $305,678,000 after purchasing an additional 1,178,890 shares during the last quarter.

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.