Reddit (NYSE:RDDT) Upgraded at Evercore ISI

Reddit (NYSE:RDDT) was upgraded by equities research analysts at Evercore ISI to a “strong-buy” rating in a research report issued on Monday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the company. Raymond James Financial reiterated a “strong-buy” rating and issued a $250.00 price target (up from $225.00) on shares of Reddit in a research note on Monday, October 20th. Truist Financial set a $270.00 target price on shares of Reddit in a research note on Friday, October 31st. Robert W. Baird raised their price target on shares of Reddit from $177.00 to $240.00 and gave the stock a “neutral” rating in a report on Thursday, September 25th. JPMorgan Chase & Co. lifted their price objective on shares of Reddit from $190.00 to $227.00 and gave the stock a “neutral” rating in a research note on Friday, October 31st. Finally, Zacks Research downgraded Reddit from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 26th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $238.57.

Reddit Trading Down 2.0%

RDDT opened at $253.67 on Monday. The firm has a market cap of $48.07 billion, a price-to-earnings ratio of 145.54, a PEG ratio of 1.64 and a beta of 2.17. Reddit has a 12 month low of $79.75 and a 12 month high of $282.95. The stock has a fifty day moving average price of $220.63 and a 200-day moving average price of $209.31.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, October 30th. The company reported $0.80 EPS for the quarter, beating the consensus estimate of $0.50 by $0.30. The business had revenue of $584.91 million during the quarter, compared to analyst estimates of $546.65 million. Reddit had a net margin of 18.33% and a return on equity of 14.94%. The company’s quarterly revenue was up 67.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.16 earnings per share. On average, equities research analysts forecast that Reddit will post 1.12 EPS for the current year.

Insider Activity at Reddit

In other news, CFO Andrew Vollero sold 3,674 shares of the stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $261.21, for a total transaction of $959,685.54. Following the sale, the chief financial officer owned 251,644 shares of the company’s stock, valued at approximately $65,731,929.24. This represents a 1.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Jennifer L. Wong sold 39,167 shares of the company’s stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $234.37, for a total transaction of $9,179,569.79. Following the sale, the chief operating officer directly owned 1,184,528 shares in the company, valued at approximately $277,617,827.36. The trade was a 3.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 505,470 shares of company stock worth $109,018,861 in the last 90 days. 34.25% of the stock is owned by insiders.

Hedge Funds Weigh In On Reddit

Hedge funds have recently modified their holdings of the business. NewEdge Advisors LLC increased its position in Reddit by 143.3% in the 1st quarter. NewEdge Advisors LLC now owns 7,982 shares of the company’s stock valued at $837,000 after acquiring an additional 4,701 shares during the period. Empowered Funds LLC acquired a new position in shares of Reddit during the 1st quarter worth $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Reddit by 106.3% during 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 increased its position in shares of Reddit by 40.8% in the first quarter. Focus Partners Wealth now owns 10,224 shares of the company’s stock valued at $1,073,000 after buying an additional 2,965 shares in the last quarter. Finally, Geneos Wealth Management Inc. grew its position 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 during the last quarter.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Evercore initiated coverage of RDDT with an Outperform recommendation, citing upside from additional monetization opportunities — this helped spark buying interest. Read More.
• Positive Sentiment: Evercore and other outlets highlighted Reddit’s scope for further monetization (AI ad tools, new products), reinforcing a growth story that supports higher revenue/ARPU expectations. Read More.
• Positive Sentiment: Zacks emphasized Reddit’s expanding product lineup and AI-driven advertising capabilities as drivers of engagement and revenue growth — a constructive longer-term thesis for investors. Read More.
• Positive Sentiment: Additional analyst coverage initiations (which increase visibility/liquidity) were reported and may support demand if follow-through is positive. Read More.
• Neutral Sentiment: Market focus on Reddit’s earnings catalyst (Jan. 13) increased positioning and volatility — a binary event that could swing the stock materially depending on results vs. expectations. Read More.
• Neutral Sentiment: Analyst consensus remains broadly constructive (Moderate Buy, average targets near the $230–$240 area), providing baseline support but limiting immediate upside if results only meet estimates.
• Negative Sentiment: CTO Christopher Slowe sold 14,000 shares (~$3.55M at ~$254), cutting his stake materially — large insider sales from senior tech leadership often weigh on sentiment. Read More.
• Negative Sentiment: CFO Andrew Vollero disclosed multiple recent sales (including several thousand shares on Jan. 13 and Jan. 9), adding to the cluster of insider selling and amplifying short-term downside headline risk. Read More.
• Negative Sentiment: Coverage noted the stock pulled back after the wave of insider selling, which explains recent downward pressure and increased volatility for traders. Read More.

About Reddit

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.