Reddit (NYSE:RDDT) Earns Overweight Rating from Piper Sandler

Key Points

• Piper Sandler reiterated an overweight rating on Reddit with a $215 price target (up from $205), implying roughly a 30.5% upside; Reddit's consensus from analysts is a "Moderate Buy" with an average target of $227.71.
• Reddit materially beat Q1 expectations — $663.4M in revenue and $1.01 adjusted EPS (vs. $0.62 est.), a ~69% YoY revenue increase — and gave upbeat Q2 guidance of $715M–$725M as AI-driven ad products boost monetization.
• Several large institutions have built or expanded positions—Capital World Investors and Norges Bank opened sizable stakes and Vanguard, Invesco and State Street substantially increased holdings—indicating strong institutional interest.

Reddit (NYSE:RDDT - Get Free Report)'s stock had its "overweight" rating restated by stock analysts at Piper Sandler in a research report issued to clients and investors on Friday,Benzinga reports. They currently have a $215.00 target price on the stock, up from their prior target price of $205.00. Piper Sandler's price objective would suggest a potential upside of 30.50% from the company's current price.

Other equities analysts have also issued research reports about the stock. Argus set a $300.00 price target on shares of Reddit in a research report on Friday, January 9th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $285.00 price target on shares of Reddit in a research report on Tuesday, January 20th. Rothschild & Co Redburn set a $110.00 price objective on shares of Reddit in a research note on Monday. JPMorgan Chase & Co. decreased their price objective on shares of Reddit from $227.00 to $200.00 and set a "neutral" rating for the company in a research note on Friday, February 6th. Finally, Roth Mkm boosted their price objective on shares of Reddit from $210.00 to $215.00 and gave the stock a "neutral" rating in a research note on Friday, January 30th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat.com, Reddit presently has a consensus rating of "Moderate Buy" and an average price target of $227.71.

Reddit Price Performance

RDDT stock traded up $17.52 on Friday, hitting $164.75. 7,579,563 shares of the company were exchanged, compared to its average volume of 5,210,427. Reddit has a twelve month low of $94.89 and a twelve month high of $282.95. The business's fifty day moving average is $144.12 and its two-hundred day moving average is $184.31. The stock has a market capitalization of $31.47 billion, a price-to-earnings ratio of 63.09, a price-to-earnings-growth ratio of 1.07 and a beta of 2.40.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported $1.01 EPS for the quarter, topping the consensus estimate of $0.62 by $0.39. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The firm had revenue of $663.41 million during the quarter, compared to analyst estimates of $607.74 million. During the same quarter in the prior year, the business posted $0.13 earnings per share. Reddit's revenue for the quarter was up 69.1% compared to the same quarter last year. Equities research analysts expect that Reddit will post 4.02 earnings per share for the current year.

Insider Buying and Selling at Reddit

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the business's stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $158.40, for a total transaction of $2,851,200.00. Following the completion of the sale, the chief executive officer directly owned 411,195 shares in the company, valued at $65,133,288. The trade was a 4.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 the company's stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the completion of the transaction, the chief operating officer owned 1,088,451 shares of the company's stock, valued at $175,752,182.97. This trade represents a 3.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have purchased 61,000 shares of company stock valued at $8,870,815 and have sold 280,441 shares valued at $40,873,759. 34.25% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in RDDT. Capital World Investors purchased a new position in shares of Reddit in the fourth quarter valued at $1,293,258,000. Norges Bank purchased a new position in shares of Reddit in the fourth quarter valued at $372,047,000. Vanguard Group Inc. boosted its stake in shares of Reddit by 12.9% in the third quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company's stock valued at $2,814,734,000 after purchasing an additional 1,401,293 shares during the period. Invesco Ltd. boosted its stake in shares of Reddit by 419.0% in the third quarter. Invesco Ltd. now owns 1,487,941 shares of the company's stock valued at $342,212,000 after purchasing an additional 1,201,237 shares during the period. Finally, State Street Corp boosted its stake in shares of 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 period.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q1 results materially beat expectations — Reddit reported $663M in revenue (well above estimates) and $1.01 adjusted EPS, supported by a ~69% YoY revenue increase and a ~74% jump in ad revenue, signaling stronger monetization. Read More.
• Positive Sentiment: Company provided upbeat Q2 revenue guidance ($715M–$725M), above Street estimates, reinforcing the view that AI-driven ad products are translating into measurable revenue growth. Read More.
• Positive Sentiment: Management and press highlights AI-driven ad performance and product traction (including improved search usage), supporting sustainable ad monetization and longer-term TAM expansion. Read More.
• Positive Sentiment: Several brokers reaffirmed buy ratings and high price targets (Needham $300, DA Davidson $200), indicating continued analyst confidence in upside after the quarter. Read More.
• Neutral Sentiment: Coverage update: Citizens Jmp trimmed its price target from $250 to $240 but kept a "market outperform" rating — a modest pullback in optimism but still positive relative to current levels. Read More.
• Positive Sentiment: Market commentary and headlines emphasize the role of Reddit’s unique community content as “fuel” for AI, which investors interpret as a durable competitive advantage for ad products. Read More.
• Negative Sentiment: Some analyst notes and press pieces highlight differing valuations and mixed views across coverage — price targets vary widely, reflecting uncertainty about how sustainably Reddit can scale margins and ad yields. Read More.

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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