Reddit (NYSE:RDDT) Shares Gap Up Following Insider Buying Activity

Reddit Inc. (NYSE:RDDT) shares gapped up before the market opened on Friday following insider buying activity. The stock had previously closed at $131.07, but opened at $141.85. Reddit shares last traded at $139.6770, with a volume of 2,173,102 shares changing hands.

Specifically, Director Sarah E. Farrell purchased 6,700 shares of the company’s stock in a transaction dated Wednesday, February 11th. The stock was acquired at an average cost of $139.27 per share, for a total transaction of $933,109.00. Following the completion of the transaction, the director directly owned 50,500 shares of the company’s stock, valued at approximately $7,033,135. This trade represents a 15.30% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Sarah E. Farrell acquired 43,800 shares of Reddit stock in a transaction that occurred on Tuesday, February 10th. The shares were bought at an average price of $149.52 per share, for a total transaction of $6,548,976.00. Following the transaction, the director owned 43,800 shares of the company’s stock, valued at $6,548,976. This represents a ∞ increase in their position. The SEC filing for this purchase provides additional information.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on RDDT. Zacks Research cut Reddit from a “strong-buy” rating to a “hold” rating in a report on Friday, December 26th. JPMorgan Chase & Co. lowered their price target on shares of Reddit from $227.00 to $200.00 and set a “neutral” rating on the stock in a research report on Friday, February 6th. Raymond James Financial restated a “strong-buy” rating and set a $250.00 price objective (up from $225.00) on shares of Reddit in a research report on Monday, October 20th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $285.00 target price on shares of Reddit in a research note on Tuesday, January 20th. Finally, Morgan Stanley set a $240.00 price target on shares of Reddit in a research note on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $240.93.

Key Stories Impacting Reddit

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?

Reddit Stock Performance

The firm has a market capitalization of $26.46 billion, a PE ratio of 53.29, a P/E/G ratio of 0.97 and a beta of 2.17. The business’s 50 day moving average price is $212.78 and its 200-day moving average price is $214.39.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.28. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The firm had revenue of $725.61 million during the quarter, compared to the consensus estimate of $665.80 million. During the same quarter last year, the firm earned $0.36 EPS. The firm’s revenue for the quarter was up 69.7% on a year-over-year basis. As a group, analysts anticipate that Reddit Inc. will post 1.12 earnings per share for the current year.

Institutional Investors Weigh In On Reddit

Several institutional investors and hedge funds have recently modified their holdings of RDDT. 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 valued at $3,062,339,000 after purchasing an additional 1,083,540 shares during the period. Capital World Investors purchased a new stake in Reddit during the 4th quarter worth approximately $1,293,258,000. State Street Corp lifted its holdings in Reddit by 6.0% during the 4th quarter. State Street Corp now owns 2,631,332 shares of the company’s stock worth $604,864,000 after buying an additional 149,401 shares in the last quarter. Geode Capital Management LLC boosted its position in Reddit by 4.7% in the 4th quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock valued at $546,789,000 after buying an additional 106,821 shares during the period. Finally, Morgan Stanley boosted its position in Reddit by 11.4% in the 4th quarter. Morgan Stanley now owns 2,372,443 shares of the company’s stock valued at $545,354,000 after buying an additional 242,709 shares during the period.

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.