Reddit (NYSE:RDDT) Stock Price Up 4% – Still a Buy?

Reddit Inc. (NYSE:RDDT)’s stock price was up 4% during mid-day trading on Thursday . The stock traded as high as $152.26 and last traded at $152.3370. 750,305 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 5,451,752 shares. The stock had previously closed at $146.44.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: August user growth reached a 2026 high. Piper Sandler data indicated Reddit’s average users increased 8% month over month in August, the company’s strongest monthly growth rate this year. The data helped reverse a four-session decline and drove renewed investor interest. Reddit stock rises 6% as August user growth hits 2026 high
• Positive Sentiment: International momentum was particularly strong. Reports said international users surged 29% in August, while total user growth accelerated 8% month over month. Expanding overseas engagement could provide Reddit with additional long-term advertising inventory and monetization opportunities. Reddit’s August user growth jumps 8% month-on-month
• Positive Sentiment: Analysts viewed the audience and advertising trends as improving. Piper Sandler described the user-growth acceleration as a powerful signal, while other coverage linked the larger global audience with improving ad trends. This supports the bullish case that Reddit can continue expanding revenue beyond its recent 61% year-over-year growth. Reddit gains as August user growth accelerates
• Neutral Sentiment: Investor attention remains unusually high. Reddit was among the stocks most heavily searched by Zacks users, which can increase trading activity and visibility but does not by itself establish a fundamental change in earnings prospects. Investors heavily search Reddit
• Negative Sentiment: Concerns are emerging over the sustainability of ad growth. The latest analysis questions what Reddit is effectively paying to generate its advertising expansion, raising the risk that user acquisition, incentives, content investment, or other costs could limit profit conversion. With RDDT trading at a growth-oriented valuation, investors may demand evidence that audience gains translate into durable, profitable revenue. What Are You Really Paying For Reddit’s Ad Growth?

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Reddit in a research report on Wednesday, August 5th. DA Davidson reissued a “buy” rating and set a $200.00 price target on shares of Reddit in a research report on Thursday, July 23rd. Guggenheim restated a “buy” rating on shares of Reddit in a research note on Friday, July 31st. Roth Capital restated a “neutral” rating and issued a $145.00 price objective on shares of Reddit in a report on Monday, August 3rd. Finally, Cantor Fitzgerald lowered their price objective on shares of Reddit from $200.00 to $170.00 and set a “neutral” rating for the company in a research note on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $221.10.

Reddit Stock Up 1.6%

The business’s 50 day moving average is $167.16 and its 200 day moving average is $159.09. The company has a market cap of $30.38 billion, a P/E ratio of 36.72, a P/E/G ratio of 0.72 and a beta of 2.02.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.30. Reddit had a return on equity of 29.02% and a net margin of 31.35%.The business had revenue of $804.91 million for the quarter, compared to analysts’ expectations of $731.00 million. During the same quarter last year, the firm earned $0.45 EPS. The business’s revenue for the quarter was up 61.0% on a year-over-year basis. As a group, equities research analysts forecast that Reddit Inc. will post 5.27 EPS for the current year.

Insider Buying and Selling

In other Reddit news, COO Jennifer L. Wong sold 75,000 shares of the business’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $178.55, for a total value of $13,391,250.00. Following the completion of the transaction, the chief operating officer directly owned 1,050,339 shares in the company, valued at approximately $187,538,028.45. The trade was a 6.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Huffman sold 18,000 shares of the stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $148.02, for a total transaction of $2,664,360.00. Following the sale, the chief executive officer directly owned 336,432 shares of the company’s stock, valued at approximately $49,798,664.64. The trade was a 5.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 210,102 shares of company stock worth $36,375,252 in the last three months. 28.48% of the stock is owned by company insiders.

Institutional Investors Weigh In On Reddit

Hedge funds and other institutional investors have recently bought and sold shares of the company. The Manufacturers Life Insurance Company boosted its stake in Reddit by 8.7% in the second quarter. The Manufacturers Life Insurance Company now owns 8,167 shares of the company’s stock valued at $1,418,000 after acquiring an additional 654 shares in the last quarter. Sequoia Financial Advisors LLC increased its position in shares of Reddit by 23.0% during the second quarter. Sequoia Financial Advisors LLC now owns 2,547 shares of the company’s stock worth $442,000 after purchasing an additional 476 shares in the last quarter. Bienville Capital Management LLC increased its position in shares of Reddit by 494.4% during the second quarter. Bienville Capital Management LLC now owns 96,020 shares of the company’s stock worth $16,667,000 after purchasing an additional 79,867 shares in the last quarter. Concorde Asset Management LLC purchased a new stake in shares of Reddit during the 2nd quarter valued at $788,000. Finally, NewEdge Advisors LLC lifted its holdings in shares of Reddit by 34.6% during the 2nd quarter. NewEdge Advisors LLC now owns 4,922 shares of the company’s stock valued at $854,000 after purchasing an additional 1,265 shares during the last quarter.

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and discussions. Users can submit posts, links, images and videos, while community members can comment, vote and interact through publicly accessible forums known as subreddits.

The company generates revenue primarily through digital advertising and also offers premium memberships and other paid products. Reddit additionally provides data licensing and developer-related services that support the use of its platform content and technology.

Founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz, Reddit serves users worldwide across a broad range of communities.