Reddit (NYSE:RDDT) Earns "Buy" Rating from DA Davidson

Key Points

• DA Davidson reaffirmed a "Buy" rating on Reddit with a $200 price objective, implying roughly 27% upside, while MarketBeat shows a consensus "Moderate Buy" and an average analyst target of $230.75.
• Reddit reported a Q1 beat—EPS $1.01 vs. $0.62 est. and revenue $663.4M (+69.1% YoY)—delivered about $204M profit, guided Q2 revenue above consensus, and cited AI-driven ad products as the growth engine.
• Insider activity included CEO Steve Huffman selling 18,000 shares under a 10b5-1 plan and a director buying 10,500 shares; insiders net sold more than they bought over the past 90 days but still own 34.25% of the company.

Reddit (NYSE:RDDT - Get Free Report)'s stock had its "buy" rating reaffirmed by stock analysts at DA Davidson in a research report issued to clients and investors on Friday,Benzinga reports. They presently have a $200.00 price objective on the stock. DA Davidson's price objective suggests a potential upside of 27.31% from the stock's previous close.

Other research analysts have also issued research reports about the company. Needham & Company LLC reaffirmed a "buy" rating and set a $300.00 price objective on shares of Reddit in a research report on Friday. Roth Mkm increased their target price on Reddit from $210.00 to $215.00 and gave the stock a "neutral" rating in a research note on Friday, January 30th. Truist Financial lowered their price target on Reddit from $275.00 to $260.00 and set a "buy" rating for the company in a research report on Tuesday, April 7th. Bank of America cut their price objective on shares of Reddit from $205.00 to $175.00 and set a "neutral" rating on the stock in a research report on Thursday, April 2nd. Finally, Robert W. Baird set a $200.00 price objective on Reddit in a research report on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $230.75.

Reddit Price Performance

NYSE:RDDT opened at $157.10 on Friday. The firm has a market capitalization of $30.01 billion, a P/E ratio of 61.48, a PEG ratio of 1.07 and a beta of 2.40. Reddit has a one year low of $94.89 and a one year high of $282.95. The company's 50-day simple moving average is $144.12 and its 200 day simple moving average is $184.31.

Reddit (NYSE:RDDT - Get Free Report) last announced its 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 24.05% and a return on equity of 20.89%. The business had revenue of $663.41 million during the quarter, compared to the consensus estimate of $607.74 million. During the same quarter last year, the firm earned $0.13 earnings per share. The business's revenue for the quarter was up 69.1% on a year-over-year basis. On average, equities research analysts expect that Reddit will post 4.02 earnings per share for the current fiscal year.

Insider Transactions at Reddit

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the firm's stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $158.40, for a total value of $2,851,200.00. Following the transaction, the chief executive officer directly owned 411,195 shares of the company's stock, valued at approximately $65,133,288. This trade represents a 4.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sarah E. Farrell purchased 10,500 shares of Reddit stock in a transaction dated Friday, March 13th. The shares were acquired at an average cost of $132.26 per share, with a total value of $1,388,730.00. Following the transaction, the director directly owned 61,000 shares in the company, valued at approximately $8,067,860. The trade was a 20.79% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders purchased 61,000 shares of company stock worth $8,870,815 and sold 280,441 shares worth $40,873,759. Company insiders own 34.25% of the company's stock.

Institutional Trading of Reddit

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Resona Asset Management Co. Ltd. grew its position in shares of Reddit by 53.2% in the third quarter. Resona Asset Management Co. Ltd. now owns 30,944 shares of the company's stock valued at $7,166,000 after purchasing an additional 10,743 shares during the period. Vanguard Group Inc. raised its position in shares of Reddit by 12.9% during the 3rd quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company's stock worth $2,814,734,000 after purchasing an additional 1,401,293 shares during the last quarter. Optimize Financial Inc purchased a new position in Reddit in the 3rd quarter valued at about $1,420,000. WT Asset Management Ltd acquired a new stake in Reddit in the 3rd quarter worth about $92,973,000. Finally, Wealth Enhancement Advisory Services LLC increased its position in shares of Reddit by 95.4% during the third quarter. Wealth Enhancement Advisory Services LLC now owns 16,139 shares of the company's stock worth $3,712,000 after purchasing an additional 7,881 shares in the last quarter.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q1 results beat and strong guidance — Reddit posted a sizable beat on revenue and EPS, delivered a $204M profit, and guided Q2 revenue above consensus, supporting the rally. Reddit Reports First Quarter 2026 Results
• Positive Sentiment: AI-driven ad products cited as the growth engine — Company commentary and multiple reports point to stronger returns from AI advertising tools as the key driver of higher ad sales and the bullish revenue outlook. Reddit rallies as AI‑driven ad growth fuels strong revenue outlook
• Positive Sentiment: Market reaction in premarket/after-hours trading — Reports show shares jumped substantially in premarket trading after the prints and guidance, reflecting renewed investor enthusiasm. Reddit stock jumps 12%: can AI-driven ads spark stock revival?
• Positive Sentiment: Analyst support — Needham reaffirmed a Buy and set a $300 price target, signaling bullish analyst conviction that could reinforce momentum. Benzinga
• Neutral Sentiment: Product/engagement improvement — Weekly search usage is up ~30% YoY, showing product improvements that could help ad targeting and engagement over time. People are finally using Reddit's search
• Neutral Sentiment: Earnings call transcript and metric details available — The full transcript and metric breakdowns provide more color but contain no immediate surprises beyond management’s upbeat commentary. Reddit Q1 2026 Earnings Call Transcript
• Negative Sentiment: Mixed coverage on profitability detail — One outlet framed the quarter as an earnings “miss” offset by adjusted EBITDA and revenue strength; such mixed narratives can create short-term volatility despite the beat. Reddit stock climbs as revenue, adjusted EBITDA surge offsets earnings miss

About Reddit

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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