Wedbush Begins Coverage on Reddit (NYSE:RDDT)

Investment analysts at Wedbush started coverage on shares of Reddit (NYSE:RDDT) in a research report issued on Thursday, MarketBeat Ratings reports. The firm set an “outperform” rating and a $250.00 price target on the stock. Wedbush’s price objective indicates a potential upside of 37.43% from the stock’s current price.

A number of other equities research analysts have also commented on the company. Oppenheimer reiterated an “outperform” rating and issued a $225.00 price target on shares of Reddit in a report on Friday, May 1st. Wells Fargo & Company lifted their price objective on shares of Reddit from $176.00 to $187.00 and gave the company an “equal weight” rating in a research note on Tuesday, July 7th. Needham & Company LLC reiterated a “buy” rating and issued a $300.00 price objective on shares of Reddit in a research note on Wednesday, June 24th. Rothschild & Co Redburn set a $110.00 target price on shares of Reddit in a report on Monday, April 27th. Finally, Truist Financial set a $265.00 target price on shares of Reddit in a research report on Friday, May 1st. Nineteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $231.79.

Reddit Stock Performance

Shares of RDDT opened at $181.91 on Thursday. The stock has a 50-day moving average of $172.78 and a two-hundred day moving average of $169.74. Reddit has a one year low of $119.27 and a one year high of $282.95. The stock has a market cap of $35.02 billion, a P/E ratio of 51.97 and a beta of 1.93.

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

Insider Activity at Reddit

In other news, COO Jennifer L. Wong sold 39,166 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $176.94, for a total transaction of $6,930,032.04. Following the sale, the chief operating officer directly owned 1,050,339 shares of the company’s stock, valued at $185,846,982.66. This represents a 3.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, 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 Reddit stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $173.13, for a total value of $3,116,340.00. Following the completion of the transaction, the chief executive officer owned 373,814 shares of the company’s stock, valued at approximately $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. Over the last quarter, insiders have sold 169,141 shares of company stock worth $28,680,845. 28.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Capital World Investors purchased a new stake in Reddit during the 4th quarter worth approximately $1,293,258,000. Norges Bank acquired a new position in shares of Reddit during the fourth quarter valued at approximately $372,047,000. Invesco Ltd. lifted its position in shares of Reddit by 419.0% in the third quarter. Invesco Ltd. now owns 1,487,941 shares of the company’s stock valued at $342,212,000 after acquiring an additional 1,201,237 shares in the last quarter. State Street Corp lifted its position 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 valued at $305,678,000 after acquiring an additional 1,178,890 shares in the last quarter. Finally, Vanguard Group Inc. boosted its stake 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 last quarter.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Wedbush initiated coverage on Reddit with an Outperform rating and a $250 price target, signaling strong confidence in the company’s long-term monetization potential. Benzinga article on Wedbush coverage
• Positive Sentiment: Analysts highlighted Reddit’s AI initiative, including partnerships, platform upgrades, and ad tools, as a growing driver of revenue and engagement. Zacks article on Reddit AI initiative
• Positive Sentiment: Jefferies said Reddit could beat second-quarter revenue and EBITDA expectations thanks to strong ad checks and improving user growth, which would support the bullish earnings narrative. Proactive Investors article on earnings beat potential
• Positive Sentiment: Several reports suggested Reddit stock may be undervalued relative to its AI and ad-growth outlook, with one piece citing as much as 47% upside based on those themes. Yahoo Finance article on undervaluation
• Neutral Sentiment: One article noted that analysts are still mixed on Reddit and other communication-services names, suggesting the stock may remain volatile as sentiment varies. The Globe and Mail article on conflicted analysts
• Negative Sentiment: Reddit also saw coverage around a recent selloff and questions about why the stock fell more than the broader market, indicating some traders are still taking profits after a strong run. Zacks article on recent decline

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.