Reddit (NYSE:RDDT) Receives Buy Rating from DA Davidson

DA Davidson reissued their buy rating on shares of Reddit (NYSE:RDDT) in a report released on Thursday morning,Benzinga reports. The firm currently has a $200.00 target price on the stock.

RDDT has been the subject of a number of other reports. The Goldman Sachs Group restated a “neutral” rating and issued a $200.00 price objective on shares of Reddit in a research report on Friday, May 1st. Rothschild & Co Redburn set a $110.00 price target on shares of Reddit in a report on Monday, April 27th. Wells Fargo & Company upped their price objective on shares of Reddit from $176.00 to $187.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 7th. Cantor Fitzgerald restated a “neutral” rating and set a $200.00 price objective on shares of Reddit in a research report on Monday. Finally, Oppenheimer reaffirmed an “outperform” rating and set a $225.00 price objective on shares of Reddit in a report on Friday, May 1st. Nineteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $232.48.

Reddit Price Performance

Shares of RDDT opened at $168.77 on Thursday. The company’s fifty day moving average price is $174.46 and its 200-day moving average price is $167.68. Reddit has a 1-year low of $119.27 and a 1-year high of $282.95. The firm has a market capitalization of $32.49 billion, a PE ratio of 48.22 and a beta of 1.93.

Reddit (NYSE:RDDT) last issued its quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.39. The company had revenue of $663.41 million for the quarter, compared to the consensus estimate of $607.74 million. Reddit had a net margin of 28.60% and a return on equity of 25.48%. Reddit’s quarterly revenue was up 69.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.13 EPS. As a group, research analysts anticipate that Reddit will post 4.85 EPS for the current fiscal year.

Insider Transactions at Reddit

In other Reddit news, COO Jennifer L. Wong sold 39,166 shares of the firm’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $176.94, for a total transaction of $6,930,032.04. Following the completion of the sale, the chief operating officer owned 1,050,339 shares of the company’s stock, valued at $185,846,982.66. This trade represents a 3.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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 transaction of $3,116,340.00. Following the sale, 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 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 sold 169,141 shares of company stock worth $28,680,845 in the last 90 days. Insiders own 28.48% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Bensler LLC acquired a new position in shares of Reddit in the second quarter valued at approximately $1,376,000. Johnson Investment Counsel Inc. acquired a new stake in Reddit during the 2nd quarter worth approximately $298,000. Anchyra Partners LLC lifted its holdings in Reddit by 22.9% during the 2nd quarter. Anchyra Partners LLC now owns 3,510 shares of the company’s stock worth $609,000 after buying an additional 653 shares in the last quarter. Apollon Wealth Management LLC boosted its position in Reddit by 28.4% in the 2nd quarter. Apollon Wealth Management LLC now owns 2,132 shares of the company’s stock valued at $370,000 after buying an additional 471 shares during the period. Finally, SBI Securities Co. Ltd. boosted its position in Reddit by 37.0% in the 2nd quarter. SBI Securities Co. Ltd. now owns 10,625 shares of the company’s stock valued at $1,844,000 after buying an additional 2,869 shares during the period.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: DA Davidson reaffirmed its buy rating on Reddit and set a $200 price target, implying upside from current levels. Benzinga
• Neutral Sentiment: Wall Street expects Reddit to report earnings growth in next week’s results, but Zacks noted the stock does not currently have the ideal setup for a likely earnings beat. Zacks
• Neutral Sentiment: Some coverage framed the recent pullback as either a buying opportunity or a valuation risk, reflecting debate over whether the stock’s premium is justified after its strong run. Yahoo Finance
• Negative Sentiment: Reports that Reddit may rethink its $60 million Google AI deal have raised concerns that a renewal delay or dispute could weaken a key licensing relationship. Yahoo Finance
• Negative Sentiment: Investors are also reacting to fears that Google’s AI summaries could reduce traffic to Reddit, which would pressure the platform’s advertising economics and near-term growth narrative. CNBC

Reddit Company Profile

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.