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

Key Points

• Wall Street Zen upgraded Reddit to a "Buy", joining a broader analyst backdrop of 18 Buy vs. 12 Hold ratings and a consensus "Moderate Buy" with an average price target of $228.61.
• Q1 beat and raised guidance: Reddit reported EPS $1.01 vs. $0.62 expected and revenue $663.4M (up ~69% YoY), and management guided Q2 revenue to ~$715M–$725M as AI-driven ad products and search improvements boost monetization.
• Insider trades and stock metrics: CEO Steve Huffman sold 18,000 shares under a 10b5‑1 plan while a director bought 10,500 shares; the stock trades around $166.53 with a 52‑week range of $94.89–$282.95 and a market cap of ~$31.8B (P/E ~63.6).

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

Other research analysts also recently issued reports about the stock. Jefferies Financial Group lowered their price objective on shares of Reddit from $285.00 to $250.00 and set a "buy" rating for the company in a research report on Tuesday, March 10th. Guggenheim upped their price target on shares of Reddit from $245.00 to $255.00 and gave the stock a "buy" rating in a report on Friday, February 6th. UBS Group set a $265.00 price target on shares of Reddit in a report on Tuesday, January 13th. Wells Fargo & Company upped their price target on shares of Reddit from $149.00 to $176.00 and gave the stock an "equal weight" rating in a report on Friday. Finally, Oppenheimer reiterated an "outperform" rating and set a $225.00 price target on shares of Reddit in a report on Friday. Eighteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $228.61.

Reddit Price Performance

Shares of RDDT opened at $166.53 on Friday. Reddit has a one year low of $94.89 and a one year high of $282.95. The company has a market cap of $31.81 billion, a P/E ratio of 63.56, a P/E/G ratio of 1.07 and a beta of 2.40. The firm has a 50 day simple moving average of $144.12 and a two-hundred day simple moving average of $184.31.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $1.01 EPS for the quarter, beating the consensus estimate of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 26.78%. The business had revenue of $663.41 million during the quarter, compared to the consensus estimate of $607.74 million. During the same period in the previous year, the business earned $0.13 earnings per share. The company's revenue was up 69.1% on a year-over-year basis. On average, analysts expect that Reddit will post 4.02 earnings per share for the current fiscal year.

Insider Activity

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the company's stock in a transaction 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 sale, the chief executive officer owned 411,195 shares of the company's stock, valued at approximately $65,133,288. This represents a 4.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sarah E. Farrell acquired 10,500 shares of the company's stock in a transaction dated Friday, March 13th. The shares were bought at an average price of $132.26 per share, for a total transaction of $1,388,730.00. Following the acquisition, the director directly owned 61,000 shares of the company's stock, valued at approximately $8,067,860. This trade represents a 20.79% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders acquired 61,000 shares of company stock worth $8,870,815 and sold 280,441 shares worth $40,873,759. 34.25% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Reddit

Several large investors have recently added to or reduced their stakes in RDDT. Raiffeisen Bank International AG bought a new position in Reddit in the 3rd quarter valued at about $25,000. GW&K Investment Management LLC bought a new position in Reddit in the 3rd quarter valued at about $30,000. Ascentis Independent Advisors bought a new position in Reddit in the 1st quarter valued at about $30,000. Cornerstone Planning Group LLC lifted its position in Reddit by 13,500.0% in the 3rd quarter. Cornerstone Planning Group LLC now owns 136 shares of the company's stock valued at $31,000 after acquiring an additional 135 shares in the last quarter. Finally, LOM Asset Management Ltd bought a new position in Reddit in the 4th quarter valued at about $33,000.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q1 earnings and revenue beat — Reddit reported EPS of $1.01 (vs. ~$0.62 est.) and revenue of about $663M, a ~69% year‑over‑year jump; ad revenue rose sharply, underscoring improving monetization. Zacks: Reddit Q1 Earnings Beat
• Positive Sentiment: Upbeat near-term guidance — management gave Q2 revenue guidance (~$715M–$725M) above Street expectations, signaling continued ad demand momentum. Reuters: Reddit expects revenue above estimates
• Positive Sentiment: AI-driven ad products & search improvements gaining traction — exec commentary and coverage point to rising advertiser adoption of lower‑funnel, AI-enhanced ad tools and a ~30% YoY increase in weekly search usage, both supporting higher yield per user. Reuters: AI-driven ad growth fuels outlook TechCrunch: People are finally using Reddit's search
• Positive Sentiment: Analyst support — several firms reaffirmed or raised targets (e.g., Piper Sandler raised its PT to $215; Needham reaffirmed buy with $300 PT; DA Davidson reaffirmed buy at $200), adding buy‑side validation. TickerReport / coverage on Piper Sandler
• Neutral Sentiment: Unusual options activity — traders purchased ~80,316 call options (about +88% vs. typical daily call volume), indicating speculative bullish positioning but not guaranteeing directional follow‑through.
• Neutral Sentiment: Cantor Fitzgerald raised its price target (to $180) but left a neutral rating — a mixed signal: higher target but not a bullish rating change. Benzinga: Cantor Fitzgerald update
• Negative Sentiment: Some analyst conflict and target trimming — Citizens Jmp reduced its target from $250 to $240 (still bullish stance), reflecting differing views on longer‑term upside and leaving room for skepticism about sustainability. Benzinga: Citizens Jmp update

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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