Reddit (NYSE:RDDT) Shares Gap Up Following Insider Buying Activity

Reddit Inc. (NYSE:RDDT)’s share price gapped up before the market opened on Friday following insider buying activity. The stock had previously closed at $131.07, but opened at $141.85. Reddit shares last traded at $139.6770, with a volume of 2,173,102 shares changing hands.

Specifically, Director Sarah E. Farrell bought 6,700 shares of the business’s stock in a transaction that occurred on Wednesday, February 11th. The stock was bought at an average cost of $139.27 per share, for a total transaction of $933,109.00. Following the completion of the transaction, the director owned 50,500 shares of the company’s stock, valued at $7,033,135. This represents a 15.30% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Sarah E. Farrell purchased 43,800 shares of the firm’s stock in a transaction on Tuesday, February 10th. The stock was acquired at an average price of $149.52 per share, for a total transaction of $6,548,976.00. Following the completion of the transaction, the director directly owned 43,800 shares of the company’s stock, valued at approximately $6,548,976. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information.

Analyst Ratings Changes

A number of brokerages have recently issued reports on RDDT. B. Riley Securities boosted their price objective on shares of Reddit from $245.00 to $250.00 and gave the company a “buy” rating in a research report on Friday, February 6th. Wall Street Zen downgraded Reddit from a “buy” rating to a “hold” rating in a research report on Saturday, January 10th. China Renaissance assumed coverage on Reddit in a report on Tuesday, December 9th. They set a “buy” rating and a $300.00 price target for the company. Sanford C. Bernstein upped their price target on Reddit from $190.00 to $210.00 and gave the stock a “market perform” rating in a research report on Friday, October 31st. Finally, Wells Fargo & Company set a $196.00 price objective on Reddit in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $240.93.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Meltwater was named an official Reddit Data Partner — a validation that should expand third‑party analytics and enterprise use of Reddit’s public content, which can increase platform value to advertisers. Meltwater Earns Official Data Partner Status with Reddit
• Positive Sentiment: Director Sarah E. Farrell materially increased her stake (large buys on 2/10 and 2/11 totaling multiple millions), a strong insider vote of confidence that markets often view as bullish for long‑term fundamentals. Insider Buying: Farrell Purchases RDDT Stock
• Positive Sentiment: Shirofune ad integration and sell‑side notes (Needham) highlight improving ad tooling and AI-driven product momentum that could sustain revenue growth and justify multiple expansion if execution continues. Shirofune Integration Puts Reddit Ads Directly Into Omnichannel Budget Decisions
• Neutral Sentiment: Reddit remains a high‑interest ticker (heavy investor searches). That attention can amplify intraday volatility but is not itself a fundamental driver. Investors Heavily Search Reddit Inc.
• Negative Sentiment: CTO Christopher Slowe sold ~11,464 shares (~6.5% reduction in his holding), which can be interpreted as a negative signal and may have contributed to short‑term selling pressure. SEC Form 4 — Slowe Sale
• Negative Sentiment: Analyst and press coverage points to a ~46% decline over the past month driven by macro headwinds and ad‑market competition; that magnitude of drawdown often sparks momentum selling and dampens near‑term sentiment. Reddit Stock Declines 46% in a Month
• Negative Sentiment: Deeper writeups on why shares plunged cite persistent macro and competitive risks to ad monetization that could pressure near‑term revenue and multiples if they persist. Why Reddit Shares Plunged

Reddit Stock Up 6.7%

The stock has a fifty day simple moving average of $214.67 and a 200 day simple moving average of $214.47. The firm has a market capitalization of $26.50 billion, a P/E ratio of 53.38, a PEG ratio of 1.03 and a beta of 2.17.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, topping analysts’ consensus estimates of $0.96 by $0.28. Reddit had a return on equity of 20.89% and a net margin of 24.05%.The firm had revenue of $725.61 million during the quarter, compared to analyst estimates of $665.80 million. During the same quarter in the prior year, the company posted $0.36 earnings per share. The business’s quarterly revenue was up 69.7% compared to the same quarter last year. Research analysts anticipate that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RDDT. NewEdge Advisors LLC grew its holdings in Reddit by 143.3% during the 1st quarter. NewEdge Advisors LLC now owns 7,982 shares of the company’s stock valued at $837,000 after buying an additional 4,701 shares in the last quarter. Empowered Funds LLC purchased a new position in shares of Reddit in the first quarter worth $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Reddit by 106.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company’s stock worth $22,759,000 after buying an additional 111,780 shares in the last quarter. Focus Partners Wealth boosted its position in shares of Reddit by 40.8% during the first quarter. Focus Partners Wealth now owns 10,224 shares of the company’s stock worth $1,073,000 after acquiring an additional 2,965 shares during the last quarter. Finally, Geneos Wealth Management Inc. grew its stake in Reddit by 344.6% during the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock valued at $39,000 after acquiring an additional 286 shares in the last quarter.

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.