Reddit (NYSE:RDDT) Upgraded by Wall Street Zen to Buy Rating

Wall Street Zen upgraded shares of Reddit (NYSE:RDDT) from a hold rating to a buy rating in a research report released on Saturday morning.

Several other analysts also recently issued reports on the company. Loop Capital restated a “buy” rating and issued a $260.00 price objective on shares of Reddit in a research report on Thursday, June 4th. Evercore reissued an “outperform” rating and issued a $265.00 target price on shares of Reddit in a research note on Friday. B. Riley Financial boosted their target price on shares of Reddit from $250.00 to $270.00 and gave the company a “buy” rating in a research note on Friday. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $200.00 price target on shares of Reddit in a research note on Friday, May 1st. Finally, UBS Group reiterated a “buy” rating on shares of Reddit in a report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $223.16.

Reddit Stock Performance

RDDT stock opened at $140.67 on Friday. The stock’s 50 day moving average price is $176.72 and its 200 day moving average price is $164.92. The firm has a market cap of $27.08 billion, a P/E ratio of 32.71 and a beta of 1.93. Reddit has a 1 year low of $119.27 and a 1 year high of $282.95.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, topping the consensus estimate of $0.95 by $0.30. Reddit had a return on equity of 29.97% and a net margin of 31.35%.The company had revenue of $804.91 million during the quarter, compared to the consensus estimate of $731.00 million. During the same quarter last year, the business posted $0.45 earnings per share. Reddit’s revenue was up 61.0% compared to the same quarter last year. On average, research analysts predict that Reddit will post 4.85 earnings per share for the current year.

Insider Transactions at Reddit

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $178.26, for a total value of $3,208,680.00. Following the completion of the sale, the chief executive officer directly owned 373,814 shares in the company, valued at approximately $66,636,083.64. The trade was a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of the company’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the transaction, the chief operating officer directly owned 1,088,451 shares of the company’s stock, valued at $172,541,252.52. This trade represents a 3.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 169,141 shares of company stock worth $28,680,845 in the last three months. Company insiders own 28.48% of the company’s stock.

Hedge Funds Weigh In On Reddit

A number of hedge funds have recently made changes to their positions in RDDT. Sunbelt Securities Inc. grew its stake in shares of Reddit by 87.5% during the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock valued at $26,000 after buying an additional 91 shares during the period. Ascentis Independent Advisors purchased a new position in shares of Reddit in the 1st quarter worth $30,000. LOM Asset Management Ltd purchased a new position in shares of Reddit in the 4th quarter worth $33,000. EverSource Wealth Advisors LLC raised its position in shares of Reddit by 48.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after buying an additional 64 shares during the period. Finally, Beacon Investment Advisory Services Inc. acquired a new position in Reddit in the second quarter valued at $35,000.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported second-quarter revenue of approximately $805 million, up 61% year over year, while earnings of $1.25 per share exceeded analysts’ estimates. Advertising demand, higher pricing and user growth supported stronger monetization. Reddit crushes revenue and earnings estimates, issues strong guidance
• Positive Sentiment: Management forecast third-quarter revenue of $860 million to $870 million, above Wall Street’s approximately $830 million expectation. AI-powered advertising tools, product upgrades and continued ad growth are expected to support momentum. Reddit expects revenue above estimates as AI tools attract advertisers
• Positive Sentiment: Analyst sentiment remains mixed but includes bullish views: Truist raised its price target to $275 and maintained a buy rating, while Wedbush kept an outperform rating with a $221 target. KeyCorp also upgraded Reddit to “strong buy.” Reddit analyst actions
• Neutral Sentiment: Reddit is testing a “video Reddit” experience that could let users watch videos and listen to posts in the background, potentially increasing engagement and creating new advertising opportunities over time. Reddit is testing a new way to watch and listen to its viral posts
• Negative Sentiment: The primary selloff trigger was management’s warning that search referrals have become “choppy” or volatile. Investors fear Google’s AI-generated search summaries and other AI search tools could reduce traffic to Reddit, weakening future user growth, engagement and advertising monetization. Reddit Stock Plunges on Choppy Search Referrals Warning
• Negative Sentiment: Investors were also disappointed by slower U.S. daily-user growth and the lack of announced new AI licensing deals, raising questions about Reddit’s longer-term traffic outlook. JPMorgan and Cantor Fitzgerald responded by lowering their price targets to $185 and $170, respectively, while assigning neutral ratings. Reddit earnings: why are investors concerned despite solid headline numbers

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.