Reddit (NYSE:RDDT) Trading Up 8% – Time to Buy?

Shares of Reddit Inc. (NYSE:RDDT) rose 8% during mid-day trading on Wednesday . The stock traded as high as $189.90 and last traded at $187.4080. Approximately 1,480,596 shares changed hands during trading, a decline of 71% from the average session volume of 5,164,827 shares. The stock had previously closed at $173.58.

Key Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Options activity jumped as traders bought far more Reddit call options than usual, suggesting rising bullish sentiment and expectations for further upside. Why is Reddit (RDDT) stock soaring today
• Positive Sentiment: Analysts and market commentary highlighted Reddit’s stronger engagement, international expansion, and new ad tools, reinforcing the company’s long-term growth narrative despite recent volatility. Reddit Stock Falls 28.2% in 6 Months: Should You Buy the Dip?
• Neutral Sentiment: Reddit’s CEO sold 18,000 shares under a pre-arranged 10b5-1 plan. While the sale is worth watching, the transaction was disclosed as part of a scheduled trading program and does not necessarily signal a change in business outlook. SEC filing
• Neutral Sentiment: Some of Thursday’s weakness appears to be simple profit-taking after a 12.5% surge tied to optimism about Reddit’s AI data-licensing opportunities. Why Is Reddit Stock Pulling Back on Thursday?

Analyst Ratings Changes

Several research firms recently weighed in on RDDT. Wall Street Zen downgraded Reddit from a “buy” rating to a “hold” rating in a research note on Sunday, May 10th. Jefferies Financial Group dropped their target price on Reddit from $285.00 to $250.00 and set a “buy” rating on the stock in a report on Tuesday, March 10th. Bank of America dropped their target price on Reddit from $205.00 to $175.00 and set a “neutral” rating on the stock in a report on Thursday, April 2nd. Needham & Company LLC reissued a “buy” rating and issued a $300.00 target price on shares of Reddit in a research note on Wednesday, June 24th. Finally, Cantor Fitzgerald lifted their price target on Reddit from $170.00 to $180.00 and gave the stock a “neutral” rating in a research report on Friday, May 1st. Eighteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $230.75.

Reddit Price Performance

The company has a market cap of $37.46 billion, a P/E ratio of 55.59 and a beta of 1.93. The company’s 50-day moving average is $164.32 and its two-hundred day moving average is $171.75.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.39. The business had revenue of $663.41 million for the quarter, compared to analysts’ expectations of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The firm’s quarterly revenue was up 69.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.13 EPS. Equities research analysts anticipate that Reddit Inc. will post 4.83 EPS for the current year.

Insider Activity

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of the business’s stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $161.47, for a total value of $6,324,295.49. Following the completion of the transaction, the chief operating officer owned 1,088,451 shares of the company’s stock, valued at approximately $175,752,182.97. The trade was a 3.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the company’s stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $173.13, for a total transaction of $3,116,340.00. Following the transaction, the chief executive officer owned 373,814 shares in the company, valued at $64,718,417.82. This represents a 4.59% 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 241,000 shares of company stock valued at $40,030,125 over the last ninety days. 28.48% of the stock is currently owned by corporate insiders.

Institutional Trading of Reddit

A number of large investors have recently made changes to their positions in RDDT. Capital World Investors purchased a new stake in Reddit during the 4th quarter valued at $1,293,258,000. Norges Bank purchased a new position in shares of Reddit in the 4th quarter worth $372,047,000. Invesco Ltd. boosted its stake in shares of Reddit by 419.0% in the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company’s stock worth $342,212,000 after buying an additional 1,201,237 shares during the last quarter. State Street Corp grew its holdings in shares of Reddit by 138.5% in the second quarter. State Street Corp now owns 2,030,139 shares of the company’s stock worth $305,678,000 after acquiring an additional 1,178,890 shares during the period. Finally, Vanguard Group Inc. grew its holdings in shares of Reddit by 8.9% in the fourth quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock worth $3,062,339,000 after acquiring an additional 1,083,540 shares during the period.

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.