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

Reddit (NYSE:RDDT) was upgraded by equities researchers at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued to investors on Saturday.

Other analysts have also issued reports about the stock. Evercore reaffirmed an “outperform” rating and issued a $265.00 price target on shares of Reddit in a research note on Friday. Wedbush lowered their price objective on shares of Reddit from $250.00 to $221.00 and set an “outperform” rating on the stock in a research note on Friday. Telsey Advisory Group set a $240.00 target price on Reddit in a report on Friday. Weiss Ratings restated a “hold (c)” rating on shares of Reddit in a research report on Friday, May 8th. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and set a $180.00 price target on shares of Reddit in a research note on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat, Reddit currently has a consensus rating of “Moderate Buy” and a consensus price target of $220.90.

Reddit Price Performance

Shares of NYSE RDDT opened at $140.67 on Friday. Reddit has a fifty-two week low of $119.27 and a fifty-two week high of $282.95. The firm’s 50-day simple moving average is $176.72 and its 200 day simple moving average is $164.36. The stock has a market cap of $27.08 billion, a P/E ratio of 32.71 and a beta of 2.04.

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 analysts’ consensus estimates of $0.95 by $0.30. The firm had revenue of $804.91 million during the quarter, compared to analyst estimates of $731.00 million. Reddit had a net margin of 31.35% and a return on equity of 29.97%. Reddit’s revenue was up 61.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.45 EPS. On average, sell-side analysts anticipate that Reddit will post 4.85 earnings per share for the current fiscal year.

Insider Transactions at Reddit

In related news, CAO Michelle Marie Reynolds sold 808 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $200.00, for a total value of $161,600.00. Following the sale, the chief accounting officer directly owned 15,060 shares in the company, valued at $3,012,000. The trade was a 5.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $178.26, for a total transaction of $3,208,680.00. Following the sale, the chief executive officer directly owned 373,814 shares of the company’s stock, valued at approximately $66,636,083.64. This represents a 4.59% decrease in their ownership of the stock. 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 169,141 shares of company stock valued at $28,680,845 in the last quarter. Insiders own 28.48% of the company’s stock.

Institutional Investors Weigh In On Reddit

Institutional investors and hedge funds have recently modified their holdings of the stock. Ahara Advisors LLC boosted its stake in shares of Reddit by 42.8% during the 2nd quarter. Ahara Advisors LLC now owns 10,759 shares of the company’s stock worth $1,868,000 after acquiring an additional 3,224 shares in the last quarter. Udine Wealth Management Inc. acquired a new stake in shares of Reddit during the second quarter worth $2,901,000. Bogart Wealth LLC raised its position in shares of Reddit by 8,400.0% during the second quarter. Bogart Wealth LLC now owns 595 shares of the company’s stock worth $103,000 after purchasing an additional 588 shares during the period. a16z Perennial Management L.P. purchased a new stake in shares of Reddit during the second quarter valued at $430,000. Finally, Sidoxia Capital Management LLC purchased a new stake in shares of Reddit during the second quarter valued at $713,000.

More Reddit News

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.