Reddit (NYSE:RDDT) Upgraded at Wall Street Zen

Key Points

• Reddit was recently upgraded from a "hold" to a "buy" rating by analysts at Wall Street Zen, reflecting positive sentiment about the company's stock performance.
• Based on recent earnings results, Reddit reported a significant 77.9% year-over-year revenue increase, with earnings per share of $0.45, significantly surpassing forecasts.
• Analyst ratings show a consensus of "Moderate Buy" for Reddit, with a price target averaging around $175.38, as two analysts gave a Strong Buy rating and thirteen issued a Buy rating.

Reddit (NYSE:RDDT - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Sunday.

A number of other research analysts have also recently weighed in on RDDT. Roth Capital lifted their price objective on Reddit from $130.00 to $145.00 and gave the company a "neutral" rating in a research report on Monday, July 21st. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $212.00 price objective on shares of Reddit in a research report on Friday, August 1st. Wells Fargo & Company lifted their price objective on Reddit from $115.00 to $118.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 1st. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $210.00 price objective on shares of Reddit in a research report on Friday, August 22nd. Finally, JPMorgan Chase & Co. lifted their price objective on Reddit from $145.00 to $190.00 and gave the company a "neutral" rating in a research report on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $175.38.

Reddit Stock Performance

Shares of NYSE:RDDT opened at $240.19 on Friday. The stock has a market capitalization of $44.95 billion, a price-to-earnings ratio of 218.35, a PEG ratio of 3.81 and a beta of 2.40. The stock's 50-day simple moving average is $186.96 and its two-hundred day simple moving average is $142.81. Reddit has a 52-week low of $55.25 and a 52-week high of $253.14.

Reddit (NYSE:RDDT - Get Free Report) last announced 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. The business had revenue of $499.63 million for the quarter, compared to analysts' expectations of $424.07 million. Reddit had a return on equity of 9.93% and a net margin of 12.97%.The business's revenue for the quarter was up 77.9% on a year-over-year basis. During the same period last year, the firm posted ($0.06) earnings per share. Reddit has set its Q3 2025 guidance at EPS. As a group, equities analysts forecast that Reddit will post 1.12 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Andrew Vollero sold 30,000 shares of the business's stock in a transaction that occurred on Friday, June 13th. The stock was sold at an average price of $117.64, for a total value of $3,529,200.00. Following the transaction, the chief financial officer directly owned 333,806 shares of the company's stock, valued at approximately $39,268,937.84. The trade was a 8.25% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Jennifer L. Wong sold 40,967 shares of the business's stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $220.38, for a total value of $9,028,307.46. Following the completion of the transaction, the chief operating officer directly owned 120,033 shares in the company, valued at approximately $26,452,872.54. This represents a 25.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 516,777 shares of company stock valued at $88,790,076 in the last 90 days. 34.25% of the stock is currently owned by company insiders.

Institutional Trading of Reddit

Large investors have recently added to or reduced their stakes in the company. CWM LLC increased its stake in Reddit by 100.0% in the 1st quarter. CWM LLC now owns 256 shares of the company's stock worth $27,000 after acquiring an additional 128 shares during the last quarter. Stone House Investment Management LLC bought a new stake in Reddit in the 1st quarter worth approximately $31,000. Financial Perspectives Inc bought a new stake in Reddit in the 2nd quarter worth approximately $34,000. Geneos Wealth Management Inc. increased its stake in Reddit by 344.6% in 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 during the last quarter. Finally, Canton Hathaway LLC bought a new stake in Reddit in the 1st quarter worth approximately $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.

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