Reddit (NYSE:RDDT) Trading 7.6% Higher - Still a Buy?

Key Points

• Reddit's share price increased by 7.6% to $209.77, although trading volume fell significantly, down 80% from its average.
• Wall Street analysts have a consensus rating of "Moderate Buy"** for Reddit, with price targets ranging from $190.00 to $250.00.
• Reddit reported a quarterly earnings per share (EPS) of $0.45, exceeding estimates, and revenue surged 77.9% to $499.63 million compared to last year.

Reddit Inc. (NYSE:RDDT - Get Free Report)'s share price shot up 7.6% during trading on Monday . The company traded as high as $210.45 and last traded at $209.77. 1,461,209 shares changed hands during mid-day trading, a decline of 80% from the average session volume of 7,419,676 shares. The stock had previously closed at $194.95.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on RDDT shares. Cannonball Research reissued a "buy" rating on shares of Reddit in a report on Tuesday, September 23rd. Raymond James Financial reaffirmed a "strong-buy" rating and set a $250.00 price target (up previously from $225.00) on shares of Reddit in a research report on Monday. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Reddit in a report on Wednesday, October 1st. JPMorgan Chase & Co. boosted their target price on Reddit from $145.00 to $190.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. Finally, Guggenheim raised their price target on Reddit from $165.00 to $215.00 and gave the stock a "buy" rating in a research note on Friday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Reddit currently has a consensus rating of "Moderate Buy" and a consensus target price of $210.54.

Reddit Stock Up 4.0%

The company's fifty day moving average price is $228.39 and its 200-day moving average price is $163.13. The stock has a market capitalization of $37.93 billion, a PE ratio of 184.24, a price-to-earnings-growth ratio of 2.98 and a beta of 2.23.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly 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 return on equity of 9.93% and a net margin of 12.97%.The firm had revenue of $499.63 million during the quarter, compared to analyst estimates of $424.07 million. During the same quarter in the previous year, the firm earned ($0.06) EPS. Reddit's quarterly revenue was up 77.9% compared to the same quarter last year. Reddit has set its Q3 2025 guidance at EPS. Equities research analysts anticipate that Reddit Inc. will post 1.12 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO Andrew Vollero sold 30,000 shares of the business's stock in a transaction that occurred on Tuesday, September 2nd. The shares were 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 directly owned 284,168 shares of the company's stock, valued at $61,974,199.12. The trade was a 9.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CTO Christopher Brian Slowe sold 14,000 shares of the business's stock in a transaction on Wednesday, October 8th. The shares were sold at an average price of $200.81, for a total transaction of $2,811,340.00. Following the sale, the chief technology officer owned 206,534 shares of the company's stock, valued at approximately $41,474,092.54. This represents a 6.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 382,500 shares of company stock valued at $86,159,231. 34.25% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Reddit

A number of large investors have recently made changes to their positions in the company. CWM LLC boosted its holdings in shares of Reddit by 100.0% in the first quarter. CWM LLC now owns 256 shares of the company's stock worth $27,000 after buying an additional 128 shares during the last quarter. Stone House Investment Management LLC purchased a new position in shares of Reddit during the 1st quarter worth $31,000. Financial Perspectives Inc purchased a new position in shares of Reddit during the 2nd quarter worth $34,000. Geneos Wealth Management Inc. grew its position in shares of Reddit by 344.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after acquiring an additional 286 shares during the period. Finally, GAMMA Investing LLC increased its stake in shares of Reddit by 8,650.0% in the 3rd quarter. GAMMA Investing LLC now owns 175 shares of the company's stock worth $40,000 after purchasing an additional 173 shares in 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.

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