Reddit (NYSE:RDDT) Raised to Buy at Wall Street Zen

Reddit (NYSE:RDDT) was upgraded by Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Saturday.

RDDT has been the topic of several other research reports. Weiss Ratings restated a “hold (c-)” rating on shares of Reddit in a research note on Monday, December 29th. Evercore reissued an “outperform” rating and set a $290.00 target price on shares of Reddit in a report on Friday, February 6th. B. Riley Financial increased their price target on Reddit from $245.00 to $250.00 and gave the company a “buy” rating in a research note on Friday, February 6th. Citigroup raised their price target on Reddit from $250.00 to $265.00 and gave the company a “buy” rating in a report on Monday, November 3rd. Finally, Zacks Research downgraded shares of Reddit from a “strong-buy” rating to a “hold” rating in a report on Friday, December 26th. One equities research 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 issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $240.93.

Reddit Price Performance

Shares of RDDT opened at $139.62 on Friday. The firm has a 50-day moving average of $212.78 and a 200-day moving average of $214.39. Reddit has a one year low of $79.75 and a one year high of $282.95. The company has a market cap of $26.46 billion, a PE ratio of 53.29, a price-to-earnings-growth ratio of 0.97 and a beta of 2.17.

Reddit (NYSE:RDDT) last issued its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.96 by $0.28. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The company had revenue of $725.61 million for the quarter, compared to analysts’ expectations of $665.80 million. During the same period in the prior year, the firm earned $0.36 EPS. Reddit’s quarterly revenue was up 69.7% compared to the same quarter last year. Analysts expect that Reddit will post 1.12 earnings per share for the current year.

Insider Buying and Selling at Reddit

In other Reddit news, Director Sarah E. Farrell bought 43,800 shares of the stock in a transaction dated Tuesday, February 10th. The shares were bought at an average cost of $149.52 per share, with a total value of $6,548,976.00. Following the completion of the acquisition, the director owned 43,800 shares of the company’s stock, valued at $6,548,976. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Also, COO Jennifer L. Wong sold 63,427 shares of the business’s stock in a transaction that occurred on Monday, November 24th. The shares were sold at an average price of $192.72, for a total value of $12,223,651.44. Following the completion of the sale, the chief operating officer owned 1,184,528 shares of the company’s stock, valued at approximately $228,282,236.16. This trade represents a 5.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 502,975 shares of company stock valued at $109,585,305 in the last quarter. Company insiders own 34.25% of the company’s stock.

Hedge Funds Weigh In On Reddit

A number of hedge funds have recently added to or reduced their stakes in RDDT. NewEdge Advisors LLC grew its holdings in shares of Reddit by 143.3% during the 1st quarter. NewEdge Advisors LLC now owns 7,982 shares of the company’s stock worth $837,000 after purchasing an additional 4,701 shares in the last quarter. Empowered Funds LLC bought a new stake in Reddit during the first quarter worth about $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Reddit by 106.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company’s stock worth $22,759,000 after purchasing an additional 111,780 shares during the period. Focus Partners Wealth grew its stake in Reddit by 40.8% during the first quarter. Focus Partners Wealth now owns 10,224 shares of the company’s stock worth $1,073,000 after buying an additional 2,965 shares in the last quarter. Finally, Geneos Wealth Management Inc. increased its holdings in Reddit by 344.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock valued at $39,000 after buying an additional 286 shares during the period.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Director Sarah E. Farrell materially increased her stake (large purchases spanning Feb. 10–11, ~50,500 shares cumulatively), an obvious insider vote of confidence that likely helped lift the stock. Reddit soars over 6% after director buys shares worth $7.48M
• Positive Sentiment: Reddit expanded ad distribution/measurement reach via integrations (Shirofune omnichannel ad workflow) that could boost ad demand and make buying Reddit inventory easier for agencies. Shirofune Integration Puts Reddit Ads Directly Into Omnichannel Budget Decisions
• Positive Sentiment: Meltwater earned Official Data Partner status with Reddit, a commercial/data partnership that broadens third‑party analytics and signals enterprise adoption of Reddit content for research/marketing. Meltwater Earns Official Data Partner Status with Reddit
• Positive Sentiment: Sell‑side commentary (Needham and others) highlights strong ad momentum and AI tools as sustainable growth drivers — supportive for sentiment if execution continues. Can Reddit (RDDT) Sustain Its Momentum? Needham Thinks So
• Neutral Sentiment: Reddit is a top searched ticker lately, which increases attention and intraday volatility but is not a direct fundamental catalyst. Investors Heavily Search Reddit Inc. (RDDT): Here is What You Need to Know
• Negative Sentiment: CTO Christopher Slowe sold ~11.5k shares (~6.5% cut to his position), a move markets often view as a cautionary signal when senior tech leadership reduces exposure. SEC filing: Form 4 — Christopher Slowe sale
• Negative Sentiment: Recent coverage notes a ~46% decline over the past month amid macro headwinds and ad competition; that magnitude of drawdown can pressure sentiment and trigger momentum selling. Reddit Stock Declines 46% in a Month: Should You Buy, Hold or Sell?

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.