Reddit (NYSE:RDDT) Stock Price Up 5.5% - What's Next?

Key Points

• Shares of Reddit Inc. (NYSE:RDDT) rose by 5.5% during mid-day trading, reaching a high of $236.80, with a last trade at $232.09.
• Analysts have raised their price targets for Reddit, with Bank of America setting it at $150.00 and Guggenheim at $215.00, while the consensus rating stands at "Moderate Buy."
• Reddit's quarterly earnings exceeded expectations, reporting $0.45 EPS and revenues of $499.63 million, marking a 77.9% increase year-over-year.

Reddit Inc. (NYSE:RDDT - Get Free Report) was up 5.5% during mid-day trading on Wednesday . The company traded as high as $236.80 and last traded at $232.09. Approximately 1,480,533 shares were traded during mid-day trading, a decline of 81% from the average daily volume of 7,749,254 shares. The stock had previously closed at $220.06.

Analyst Upgrades and Downgrades

Several research firms have commented on RDDT. Morgan Stanley increased their price objective on shares of Reddit from $170.00 to $230.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Guggenheim increased their price target on Reddit from $165.00 to $215.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Wolfe Research upgraded Reddit to an "outperform" rating in a report on Sunday, August 3rd. Loop Capital decreased their price objective on Reddit from $210.00 to $200.00 and set a "buy" rating on the stock in a report on Thursday, June 12th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and set a $210.00 target price on shares of Reddit in a research report on Friday, August 22nd. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $175.38.

Reddit Stock Up 3.5%

The company has a market capitalization of $44.95 billion, a PE ratio of 218.35, a price-to-earnings-growth ratio of 3.81 and a beta of 2.40. The firm's 50 day simple moving average is $186.96 and its 200 day simple moving average is $142.81.

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

Insider Activity

In related news, CFO Andrew Vollero sold 30,000 shares of the business's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $218.09, for a total transaction of $6,542,700.00. Following the completion of the transaction, the chief financial officer owned 284,168 shares in the company, valued at $61,974,199.12. The trade was a 9.55% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction 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 completion of the sale, the chief executive officer owned 494,104 shares in the company, valued at approximately $110,387,774.64. The trade was a 3.51% decrease in their position. The disclosure for this sale can be found here. Insiders sold 516,777 shares of company stock worth $88,790,076 in the last three months. Corporate insiders own 34.25% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of RDDT. CWM LLC lifted its holdings in shares of Reddit by 100.0% in the 1st quarter. CWM LLC now owns 256 shares of the company's stock worth $27,000 after buying an additional 128 shares during the period. Stone House Investment Management LLC purchased a new stake in Reddit in the first quarter worth about $31,000. Financial Perspectives Inc bought a new position in Reddit during the 2nd quarter worth about $34,000. Geneos Wealth Management Inc. grew its holdings in Reddit by 344.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock worth $39,000 after acquiring an additional 286 shares in the last quarter. Finally, Canton Hathaway LLC purchased a new position in Reddit during the 1st quarter valued at about $43,000.

About Reddit

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.