Reddit’s (RDDT) “Buy” Rating Reiterated at Guggenheim

Guggenheim reiterated their buy rating on shares of Reddit (NYSE:RDDT) in a research note issued to investors on Friday,Benzinga reports. Guggenheim currently has a $245.00 price target on the stock.

RDDT has been the topic of several other research reports. UBS Group set a $265.00 price objective on shares of Reddit in a research note on Tuesday, January 13th. Royal Bank Of Canada restated a “sector perform” rating on shares of Reddit in a research note on Wednesday, October 1st. B. Riley reaffirmed a “buy” rating and set a $245.00 price objective (up previously from $235.00) on shares of Reddit in a research report on Friday, October 31st. Bank of America lifted their price objective on Reddit from $180.00 to $210.00 and gave the company a “neutral” rating in a research note on Friday, October 31st. Finally, JMP Securities reissued a “market outperform” rating and issued a $300.00 target price on shares of Reddit in a research note on Friday, October 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $245.18.

Reddit Stock Up 1.8%

Shares of RDDT stock opened at $218.47 on Friday. The business’s fifty day moving average is $225.46 and its 200 day moving average is $213.47. The stock has a market cap of $41.40 billion, a price-to-earnings ratio of 125.56, a PEG ratio of 1.49 and a beta of 2.17. Reddit has a twelve month low of $79.75 and a twelve month high of $282.95.

Reddit (NYSE:RDDT) last announced its quarterly earnings data on Thursday, October 30th. The company reported $0.80 EPS for the quarter, beating the consensus estimate of $0.50 by $0.30. The business had revenue of $584.91 million during the quarter, compared to analyst estimates of $546.65 million. Reddit had a return on equity of 14.94% and a net margin of 18.33%.The company’s revenue for the quarter was up 67.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.16 earnings per share. Equities research analysts expect that Reddit will post 1.12 earnings per share for the current fiscal year.

Insider Activity at Reddit

In related news, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $232.78, for a total value of $4,190,040.00. Following the completion of the sale, the chief executive officer directly owned 448,576 shares in the company, valued at approximately $104,419,521.28. This trade represents a 3.86% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Benjamin Seong Lee sold 3,320 shares of the firm’s stock in a transaction dated Friday, January 9th. The shares were sold at an average price of $260.22, for a total transaction of $863,930.40. Following the sale, the insider directly owned 62,608 shares in the company, valued at approximately $16,291,853.76. The trade was a 5.04% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 509,511 shares of company stock valued at $111,394,344 over the last three months. 34.25% of the stock is owned by insiders.

Institutional Investors Weigh In On Reddit

A number of large investors have recently made changes to their positions in RDDT. Teacher Retirement System of Texas raised its stake in Reddit by 880.5% during the 2nd quarter. Teacher Retirement System of Texas now owns 94,676 shares of the company’s stock valued at $14,255,000 after purchasing an additional 85,020 shares during the period. Union Bancaire Privee UBP SA bought a new position in Reddit in the 2nd quarter worth approximately $2,078,000. J. Safra Sarasin Holding AG purchased a new stake in Reddit during the 2nd quarter valued at approximately $226,000. Plato Investment Management Ltd raised its position in shares of Reddit by 120.2% during the second quarter. Plato Investment Management Ltd now owns 2,970 shares of the company’s stock valued at $446,000 after buying an additional 1,621 shares during the last quarter. Finally, Police & Firemen s Retirement System of New Jersey purchased a new position in shares of Reddit in the second quarter worth $2,666,000.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Guggenheim reaffirmed a “buy” and set a $245 price target, implying meaningful upside from current levels and providing concrete analyst support for the rally. Guggenheim Buy Rating / Benzinga
• Positive Sentiment: A bullish Seeking Alpha note draws parallels between Reddit’s current monetization and early-2012 Facebook, projecting large upside if user and ARPU trends persist — a narrative that fuels long-term growth expectations. Reddit: Parallels To 2012 Facebook
• Positive Sentiment: High-visibility endorsements — notably Jim Cramer saying he “likes the company right here” and articles highlighting reasons investors favor Reddit — are lifting sentiment among retail investors. Jim Cramer Likes Reddit
• Neutral Sentiment: Analyst commentary is shifting: some pieces describe a rewriting of the price-target narrative as new estimates and multipliers are debated — this limits volatility but keeps the stock sensitive to upgrades/downgrades. Shifting Price Target Narrative / Yahoo Finance
• Neutral Sentiment: Valuation checks after recent share swings highlight high P/E and expected EPS growth; these analyses frame upside scenarios but also underline sensitivity to execution and ARPU trajectory. Valuation Check / Yahoo Finance
• Negative Sentiment: Insider selling by COO Jennifer L. Wong (multiple filings showing sizable share disposals) has weighed on sentiment and was cited as a driver of earlier price weakness; investors watch whether sales continue. COO Insider Sale / SEC Filing
• Negative Sentiment: Coverage noting a pullback tied to insider selling (reported ~4.4% drop) underscores short-term downside risk if sentiment flips or if growth guidance disappoints. Stock Down on Insider Selling / American Banking News
• Negative Sentiment: Critical analysis warns Reddit must grow at Meta-like scale to justify rich multiples and notes tougher competitive/monetization challenges, keeping execution risk top of mind for investors. Growth Challenges / Seeking Alpha

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.