Reddit's (RDDT) "Market Outperform" Rating Reaffirmed at JMP Securities

Key Points

• JMP Securities has reaffirmed its "market outperform" rating for Reddit (RDDT) with a price target of $300.00, suggesting a potential upside of 49.39% from its current price.
• Reddit's stock has experienced significant analyst activity, with ratings ranging from "strong buy" to "hold," yet it maintains a consensus rating of "Moderate Buy" with an average target price of $201.58.
• In its latest earnings report, Reddit reported a 77.9% year-over-year revenue increase, with earnings per share of $0.45, exceeding analysts' expectations.

Reddit (NYSE:RDDT - Get Free Report)'s stock had its "market outperform" rating restated by JMP Securities in a research report issued on Friday,Benzinga reports. They currently have a $300.00 price target on the stock. JMP Securities' target price would indicate a potential upside of 49.39% from the company's current price.

A number of other brokerages also recently commented on RDDT. Wall Street Zen upgraded Reddit from a "hold" rating to a "buy" rating in a research report on Sunday, September 7th. Raymond James Financial restated a "strong-buy" rating and issued a $225.00 target price (up from $175.00) on shares of Reddit in a research note on Friday, August 1st. Zacks Research downgraded shares of Reddit from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. Roth Capital increased their price objective on shares of Reddit from $130.00 to $145.00 and gave the company a "neutral" rating in a research note on Monday, July 21st. Finally, Loop Capital reduced their price objective on shares of Reddit from $210.00 to $200.00 and set a "buy" rating for the company in a report on Thursday, June 12th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $201.58.

Reddit Trading Down 0.9%

Shares of RDDT stock opened at $200.81 on Friday. The firm has a market capitalization of $37.58 billion, a P/E ratio of 182.56, a price-to-earnings-growth ratio of 3.19 and a beta of 2.23. Reddit has a 1 year low of $67.35 and a 1 year high of $282.95. The firm's fifty day simple moving average is $223.61 and its 200 day simple moving average is $155.56.

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

Insider Activity

In related news, CAO Michelle Marie Reynolds sold 3,214 shares of the stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $217.69, for a total transaction of $699,655.66. Following the sale, the chief accounting officer directly owned 28,088 shares in the company, valued at $6,114,476.72. This represents a 10.27% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Jennifer L. Wong sold 30,741 shares of the firm's stock in a transaction on Monday, September 22nd. The shares were sold at an average price of $257.28, for a total value of $7,909,044.48. Following the sale, the chief operating officer directly owned 1,295,968 shares of the company's stock, valued at $333,426,647.04. This represents a 2.32% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 397,834 shares of company stock valued at $86,512,599. Corporate insiders own 34.25% of the company's stock.

Institutional Trading of Reddit

Hedge funds and other institutional investors have recently made changes to their positions in the business. CWM LLC lifted its position in Reddit by 100.0% during the 1st quarter. CWM LLC now owns 256 shares of the company's stock worth $27,000 after buying an additional 128 shares in the last quarter. Stone House Investment Management LLC bought a new stake in shares of Reddit during the first quarter valued at approximately $31,000. Financial Perspectives Inc acquired a new stake in shares of Reddit in the second quarter valued at approximately $34,000. Geneos Wealth Management Inc. increased its holdings in shares of Reddit by 344.6% in the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after purchasing an additional 286 shares in the last quarter. Finally, GAMMA Investing LLC raised its position in 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 during 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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