Reddit (NYSE:RDDT) Upgraded at Zacks Research

Zacks Research upgraded shares of Reddit (NYSE:RDDT) from a hold rating to a strong-buy rating in a research note published on Wednesday,Zacks.com reports.

Other analysts also recently issued research reports about the stock. Guggenheim raised their price target on shares of Reddit from $165.00 to $215.00 and gave the company a “buy” rating in a report on Friday, August 1st. Sanford C. Bernstein set a $190.00 price target on shares of Reddit and gave the company a “market perform” rating in a report on Thursday, October 23rd. Cannonball Research reaffirmed a “buy” rating on shares of Reddit in a report on Tuesday, September 23rd. Roth Capital set a $185.00 price target on shares of Reddit and gave the company a “neutral” rating in a report on Thursday, October 23rd. Finally, Piper Sandler reaffirmed an “overweight” rating and set a $290.00 price target on shares of Reddit in a report on Friday, October 3rd. Three investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $225.71.

Reddit Stock Performance

Shares of RDDT stock opened at $209.15 on Wednesday. Reddit has a one year low of $79.75 and a one year high of $282.95. The company’s 50-day moving average is $223.88 and its 200 day moving average is $170.26. The company has a market capitalization of $39.15 billion, a price-to-earnings ratio of 120.20, a price-to-earnings-growth ratio of 2.93 and a beta of 2.23.

Reddit (NYSE:RDDT) last announced its quarterly earnings data on Thursday, October 30th. The company reported $0.80 EPS for the quarter, beating the consensus estimate of $0.50 by $0.30. Reddit had a net margin of 18.33% and a return on equity of 15.55%. The company had revenue of $585.00 million for the quarter, compared to the consensus estimate of $546.65 million. During the same period in the prior year, the firm posted $0.16 EPS. Reddit’s revenue for the quarter was up 67.9% on a year-over-year basis. Reddit has set its Q4 2025 guidance at EPS. As a group, research analysts predict that Reddit will post 1.12 earnings per share for the current fiscal year.

Insider Buying and Selling at Reddit

In other news, COO Jennifer L. Wong sold 40,967 shares of the stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $220.38, for a total value of $9,028,307.46. Following the transaction, the chief operating officer owned 120,033 shares in the company, valued at $26,452,872.54. This represents a 25.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO Christopher Brian Slowe sold 28,000 shares of the stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $218.94, for a total transaction of $6,130,320.00. Following the completion of the transaction, the chief technology officer owned 222,534 shares in the company, valued at $48,721,593.96. This trade represents a 11.18% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 419,626 shares of company stock worth $94,485,676 over the last quarter. Company insiders own 34.25% of the company’s stock.

Institutional Investors Weigh In On Reddit

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RDDT. Cambridge Investment Research Advisors Inc. raised its stake in Reddit by 2.7% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 14,683 shares of the company’s stock worth $1,540,000 after acquiring an additional 383 shares during the period. KBC Group NV raised its stake in Reddit by 608.5% during the 1st quarter. KBC Group NV now owns 16,940 shares of the company’s stock worth $1,777,000 after acquiring an additional 14,549 shares during the period. Vontobel Holding Ltd. raised its stake in Reddit by 698.4% during the 1st quarter. Vontobel Holding Ltd. now owns 11,561 shares of the company’s stock worth $1,213,000 after acquiring an additional 10,113 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd bought a new stake in Reddit during the 1st quarter worth approximately $657,000. Finally, Rossby Financial LCC bought a new stake in Reddit during the 1st quarter worth approximately $84,000.

Reddit Company Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.