Reddit (NYSE:RDDT) Upgraded to "Buy" at Wall Street Zen

Key Points

• Reddit has been upgraded to a "buy" rating by Wall Street Zen, reflecting positive sentiment from analysts following recent performance.
• Guggenheim raised its target price for Reddit stock from $165 to $215, while several other firms have also issued buy ratings with target prices as high as $250.
• Reddit's latest quarterly earnings report showed a notable increase in revenue, reporting $499.63 million and an EPS of $0.45, significantly surpassing estimates.

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

RDDT has been the subject of a number of other reports. Guggenheim boosted their target price on shares of Reddit from $165.00 to $215.00 and gave the stock a "buy" rating in a research note on Friday, August 1st. Wells Fargo & Company boosted their target price on shares of Reddit from $115.00 to $118.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 1st. Argus began coverage on shares of Reddit in a research note on Monday, August 18th. They issued a "buy" rating and a $250.00 target price for the company. Wolfe Research raised shares of Reddit to an "outperform" rating in a research note on Sunday, August 3rd. Finally, Raymond James Financial restated a "strong-buy" rating and issued a $225.00 price objective (up from $175.00) on shares of Reddit in a report on Friday, August 1st. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $175.38.

Reddit Stock Up 3.5%

NYSE:RDDT opened at $240.19 on Friday. The firm has a market cap 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. Reddit has a 12 month low of $55.25 and a 12 month high of $253.14. The company's 50-day moving average price is $186.96 and its two-hundred day moving average price is $142.81.

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

Insider Transactions at Reddit

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the company's stock in a transaction that occurred on Friday, August 29th. The shares were 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 of the company's stock, valued at approximately $110,387,774.64. This represents a 3.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Andrew Vollero sold 30,000 shares of the company'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 sale, 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 position. The disclosure for this sale can be found here. In the last three months, insiders have sold 516,777 shares of company stock valued at $88,790,076. Corporate insiders own 34.25% of the company's stock.

Institutional Investors Weigh In On Reddit

Several large investors have recently made changes to their positions in the stock. Infini Capital Management Ltd bought a new stake in shares of Reddit during the second quarter worth $602,000. Orion Porfolio Solutions LLC bought a new stake in shares of Reddit during the second quarter worth $201,000. Munro Partners bought a new stake in shares of Reddit during the second quarter worth $2,802,000. Nautilus Advisors LLC increased its position in shares of Reddit by 30.7% during the second quarter. Nautilus Advisors LLC now owns 4,618 shares of the company's stock worth $695,000 after acquiring an additional 1,085 shares in the last quarter. Finally, Neuberger Berman Group LLC increased its position in shares of Reddit by 7.5% during the second quarter. Neuberger Berman Group LLC now owns 360,061 shares of the company's stock worth $54,214,000 after acquiring an additional 25,257 shares in the last quarter.

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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