Reddit (NYSE:RDDT) Upgraded to “Buy” at Wall Street Zen

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

Several other equities analysts have also commented on the stock. B. Riley Financial upped their price target on shares of Reddit from $245.00 to $250.00 and gave the stock a “buy” rating in a research report on Friday, February 6th. Morgan Stanley set a $240.00 price target on shares of Reddit in a research report on Friday, February 6th. Argus set a $300.00 price target on shares of Reddit in a research report on Friday, January 9th. DA Davidson reaffirmed a “buy” rating and set a $200.00 price target on shares of Reddit in a research report on Friday. Finally, Rothschild & Co Redburn set a $110.00 price target on shares of Reddit in a research report on Monday, April 27th. Eighteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $228.61.

Reddit Stock Performance

Shares of RDDT stock opened at $166.53 on Friday. Reddit has a one year low of $94.89 and a one year high of $282.95. The company has a 50 day moving average price of $144.12 and a 200 day moving average price of $184.18. The firm has a market capitalization of $31.81 billion, a price-to-earnings ratio of 47.58, a price-to-earnings-growth ratio of 1.21 and a beta of 1.85.

Reddit (NYSE:RDDT) last issued its quarterly earnings results on Thursday, April 30th. The company reported $1.01 EPS for the quarter, topping the consensus estimate of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 26.78%. The firm had revenue of $663.41 million during the quarter, compared to analyst estimates of $607.74 million. During the same quarter in the prior year, the business posted $0.13 earnings per share. Reddit’s revenue for the quarter was up 69.1% compared to the same quarter last year. As a group, equities analysts forecast that Reddit will post 4.02 EPS for the current fiscal year.

Insider Buying and Selling at Reddit

In other news, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $145.12, for a total transaction of $2,612,160.00. Following the sale, the chief executive officer owned 411,195 shares in the company, valued at $59,672,618.40. This trade represents a 4.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Jennifer L. Wong sold 39,167 shares of Reddit stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the sale, the chief operating officer owned 1,088,451 shares in the company, valued at $175,752,182.97. This 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. In the last three months, insiders bought 61,000 shares of company stock valued at $8,870,815 and sold 280,441 shares valued at $40,873,759. Corporate insiders own 34.25% of the company’s stock.

Institutional Trading of Reddit

A number of hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in shares of Reddit by 8.9% during the fourth quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock valued at $3,062,339,000 after purchasing an additional 1,083,540 shares during the period. Capital World Investors purchased a new stake in shares of Reddit during the fourth quarter valued at approximately $1,293,258,000. State Street Corp raised its stake in shares of Reddit by 6.0% during the fourth quarter. State Street Corp now owns 2,631,332 shares of the company’s stock valued at $604,864,000 after purchasing an additional 149,401 shares during the period. Geode Capital Management LLC raised its stake in shares of Reddit by 4.7% during the fourth quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock valued at $546,789,000 after purchasing an additional 106,821 shares during the period. Finally, Morgan Stanley raised its stake in shares of Reddit by 11.4% during the fourth quarter. Morgan Stanley now owns 2,372,443 shares of the company’s stock valued at $545,354,000 after purchasing an additional 242,709 shares during the period.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q1 earnings and revenue beat — Reddit reported EPS of $1.01 (vs. ~$0.62 est.) and revenue of about $663M, a ~69% year‑over‑year jump; ad revenue rose sharply, underscoring improving monetization. Zacks: Reddit Q1 Earnings Beat
• Positive Sentiment: Upbeat near-term guidance — management gave Q2 revenue guidance (~$715M–$725M) above Street expectations, signaling continued ad demand momentum. Reuters: Reddit expects revenue above estimates
• Positive Sentiment: AI-driven ad products & search improvements gaining traction — exec commentary and coverage point to rising advertiser adoption of lower‑funnel, AI-enhanced ad tools and a ~30% YoY increase in weekly search usage, both supporting higher yield per user. Reuters: AI-driven ad growth fuels outlook TechCrunch: People are finally using Reddit’s search
• Positive Sentiment: Analyst support — several firms reaffirmed or raised targets (e.g., Piper Sandler raised its PT to $215; Needham reaffirmed buy with $300 PT; DA Davidson reaffirmed buy at $200), adding buy‑side validation. TickerReport / coverage on Piper Sandler
• Neutral Sentiment: Unusual options activity — traders purchased ~80,316 call options (about +88% vs. typical daily call volume), indicating speculative bullish positioning but not guaranteeing directional follow‑through.
• Neutral Sentiment: Cantor Fitzgerald raised its price target (to $180) but left a neutral rating — a mixed signal: higher target but not a bullish rating change. Benzinga: Cantor Fitzgerald update
• Negative Sentiment: Some analyst conflict and target trimming — Citizens Jmp reduced its target from $250 to $240 (still bullish stance), reflecting differing views on longer‑term upside and leaving room for skepticism about sustainability. Benzinga: Citizens Jmp update

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.