Needham & Company LLC Reiterates Buy Rating for Reddit (NYSE:RDDT)

Reddit (NYSE:RDDT)‘s stock had its “buy” rating reissued by Needham & Company LLC in a research note issued on Friday,Benzinga reports. They presently have a $300.00 price target on the stock. Needham & Company LLC’s price objective would indicate a potential upside of 115.41% from the company’s current price.

Several other analysts have also recently issued reports on the stock. Jefferies Financial Group upped their price objective on shares of Reddit from $300.00 to $325.00 and gave the company a “buy” rating in a research note on Thursday, December 11th. Citigroup lifted their target price on Reddit from $250.00 to $265.00 and gave the company a “buy” rating in a research report on Monday, November 3rd. Cantor Fitzgerald started coverage on shares of Reddit in a research note on Thursday, January 8th. They issued a “neutral” rating and a $240.00 price target on the stock. Argus set a $300.00 price objective on Reddit in a research note on Friday, January 9th. Finally, Bank of America lifted their price objective on shares of Reddit from $180.00 to $210.00 and gave the company a “neutral” rating in a report on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Reddit has a consensus rating of “Moderate Buy” and a consensus target price of $241.31.

Reddit Stock Performance

RDDT opened at $139.27 on Friday. Reddit has a fifty-two week low of $79.75 and a fifty-two week high of $282.95. The stock has a market capitalization of $26.39 billion, a price-to-earnings ratio of 53.16, a PEG ratio of 0.97 and a beta of 2.17. The company has a fifty day moving average of $221.22 and a two-hundred day moving average of $215.15.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.28. The business had revenue of $725.61 million during the quarter, compared to the consensus estimate of $665.80 million. Reddit had a return on equity of 22.03% and a net margin of 24.05%.The business’s quarterly revenue was up 69.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.36 EPS. On average, equities research analysts forecast that Reddit will post 1.12 earnings per share for the current year.

Insider Activity

In other news, COO Jennifer L. Wong sold 27,159 shares of the company’s stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $225.73, for a total value of $6,130,601.07. Following the completion of the sale, the chief operating officer directly owned 1,157,369 shares of the company’s stock, valued at approximately $261,252,904.37. This represents a 2.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Benjamin Seong Lee sold 3,320 shares of the company’s stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $260.22, for a total value of $863,930.40. Following the sale, the insider directly owned 62,608 shares of the company’s stock, valued at approximately $16,291,853.76. This represents a 5.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 523,511 shares of company stock worth $114,237,285 over the last 90 days. 34.25% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Reddit

Hedge funds and other institutional investors have recently bought and sold shares of the business. Norges Bank purchased a new stake in Reddit during the second quarter worth about $294,254,000. Vanguard Group Inc. lifted its position in shares of Reddit by 12.9% during the 3rd quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company’s stock valued at $2,814,734,000 after acquiring an additional 1,401,293 shares during the period. Amundi boosted its stake in shares of Reddit by 2,060.5% during the 2nd quarter. Amundi now owns 1,307,231 shares of the company’s stock worth $208,294,000 after acquiring an additional 1,246,725 shares in the last quarter. Invesco Ltd. grew its holdings 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 acquiring an additional 1,201,237 shares during the period. Finally, State Street Corp grew its holdings in shares of Reddit by 138.5% in the 2nd 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.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Strong Q4 results and raised guidance — Reddit reported Q4 EPS and revenue above estimates and forecast Q1 revenue above Street expectations, a key reason the stock rallied after the print. Reddit forecasts revenue above estimates as AI fuels ad sales
• Positive Sentiment: $1 billion share buyback announced — management authorized a sizable repurchase program that should support EPS and reduce float over time. Reddit Reports Fourth Quarter and Full Year 2025 Results; Announces $1 Billion Share Repurchase Program
• Positive Sentiment: Analysts reacting — several firms raised price targets and reaffirmed buy ratings after the quarter, signaling continued bullish institutional views. These Analysts Revise Their Forecasts On Reddit Following Q4 Results
• Neutral Sentiment: AI and product roadmap could drive longer-term ad monetization — management highlighted AI search and ad tools as growth drivers, but monetization timelines remain multi-quarter. Reddit looks to AI search as its next big opportunity
• Neutral Sentiment: M&A appetite announced — Reddit told analysts it’s scouting adtech and other buys that either scale across Reddit or grow users; strategic but uncertain near-term impact. Reddit says it’s looking for more acquisitions in adtech and elsewhere
• Negative Sentiment: CEO insider selling reported — recent disclosure of a multi-million-dollar sale by the CEO has been cited as a near-term selling catalyst. Insider Selling: Reddit (NYSE:RDDT) CEO Sells $3,297,240.00 in Stock
• Negative Sentiment: Transparency change: company plans to stop disclosing logged‑in vs. logged‑out user counts in 2026 — investors may view that as reduced visibility into engagement trends. Reddit (RDDT) plans to stop disclosing logged-in and logged-out user numbers in 2026
• Negative Sentiment: Valuation and profit-taking — after the post-earnings jump, some investors appear to be locking in gains amid divergent DCF/valuation views and very high intraday volume, pressuring the share price. Reddit (RDDT) Valuation Check As Shares Lag And DCF Views Sharply Diverge

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.