Reddit's (RDDT) Overweight Rating Reaffirmed at Piper Sandler

Key Points

• Piper Sandler reaffirmed an "overweight" rating for Reddit (RDDT) and set a price target of $290.00, indicating a potential upside of 44.41% from the previous close.
• Reddit reported a quarterly earnings per share (EPS) of $0.45, exceeding estimates and highlighting a 77.9% year-over-year revenue growth to $499.63 million.
• Recent insider transactions saw CEO Steve Ladd Huffman selling 18,000 shares for approximately $4.12 million, reducing his position by 3.51%.

Reddit (NYSE:RDDT - Get Free Report)'s stock had its "overweight" rating reiterated by Piper Sandler in a research note issued to investors on Friday,Benzinga reports. They presently have a $290.00 price target on the stock. Piper Sandler's price objective points to a potential upside of 44.41% from the stock's previous close.

A number of other research firms have also weighed in on RDDT. Wells Fargo & Company increased their price objective on Reddit from $115.00 to $118.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 1st. Loop Capital cut their price target on shares of Reddit from $210.00 to $200.00 and set a "buy" rating on the stock in a report on Thursday, June 12th. Roth Capital upped 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. Morgan Stanley increased their target price on shares of Reddit from $170.00 to $230.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Finally, Oppenheimer boosted their price target on Reddit from $215.00 to $300.00 and gave the company an "outperform" rating in a report on Tuesday, September 16th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $201.58.

Reddit Stock Down 0.9%

NYSE RDDT opened at $200.81 on Friday. The company has a 50-day simple moving average of $223.61 and a two-hundred day simple moving average of $155.56. Reddit has a 12-month low of $67.35 and a 12-month high of $282.95. The firm has a market cap of $37.58 billion, a price-to-earnings ratio of 182.56, a PEG ratio of 3.19 and a beta of 2.23.

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

Insider Transactions at Reddit

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction that occurred on Tuesday, September 30th. The shares were sold at an average price of $229.10, for a total value of $4,123,800.00. Following the completion of the sale, the chief executive officer owned 494,104 shares of the company's stock, valued at approximately $113,199,226.40. The trade was a 3.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CTO Christopher Brian Slowe sold 14,000 shares of the stock in a transaction on Monday, September 22nd. The shares were sold at an average price of $257.28, for a total value of $3,601,920.00. Following the transaction, the chief technology officer directly owned 208,534 shares in the company, valued at $53,651,627.52. The trade was a 6.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 397,834 shares of company stock valued at $86,512,599. Company insiders own 34.25% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Petrus Trust Company LTA purchased a new stake in shares of Reddit during the 1st quarter valued at about $473,000. JPMorgan Chase & Co. raised its position in Reddit by 98.2% in the first quarter. JPMorgan Chase & Co. now owns 1,907,495 shares of the company's stock worth $200,096,000 after acquiring an additional 944,847 shares during the period. Greycroft LP boosted its stake in shares of Reddit by 109.1% during the 1st quarter. Greycroft LP now owns 11,500 shares of the company's stock worth $1,206,000 after acquiring an additional 6,000 shares during the last quarter. Think Investments LP grew its position in shares of Reddit by 10.3% during the 1st quarter. Think Investments LP now owns 268,000 shares of the company's stock valued at $28,113,000 after acquiring an additional 25,000 shares during the period. Finally, Sender Co & Partners Inc. purchased a new stake in shares of Reddit in the 1st quarter worth $1,367,000.

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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