Reddit’s (RDDT) Buy Rating Reiterated at Needham & Company LLC

Needham & Company LLC reaffirmed their buy rating on shares of Reddit (NYSE:RDDT) in a research report sent to investors on Friday morning,Benzinga reports. Needham & Company LLC currently has a $300.00 price objective on the stock.

Several other equities research analysts have also recently weighed in on the stock. Cantor Fitzgerald initiated coverage on shares of Reddit in a research report on Thursday, January 8th. They issued a “neutral” rating and a $240.00 price target for the company. Guggenheim reissued a “buy” rating and issued a $245.00 price objective on shares of Reddit in a research note on Friday, January 23rd. Piper Sandler reaffirmed an “overweight” rating on shares of Reddit in a research report on Monday, December 1st. Morgan Stanley set a $240.00 price target on Reddit in a report on Friday. Finally, China Renaissance began coverage on Reddit in a research note on Tuesday, December 9th. They set a “buy” rating and a $300.00 price objective for the company. One 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 assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $241.31.

Reddit Stock Performance

Shares of NYSE RDDT opened at $139.27 on Friday. The stock has a 50 day moving average price of $221.22 and a 200 day moving average price of $215.63. The firm has a market capitalization of $26.39 billion, a price-to-earnings ratio of 53.16, a PEG ratio of 0.96 and a beta of 2.18. Reddit has a 52-week low of $79.75 and a 52-week high of $282.95.

Reddit (NYSE:RDDT) last announced its quarterly earnings results on Thursday, February 5th. The company reported $1.24 EPS for the quarter, beating the consensus estimate of $0.96 by $0.28. Reddit had a return on equity of 22.03% and a net margin of 24.05%.The firm had revenue of $725.61 million for the quarter, compared to analyst estimates of $665.80 million. During the same quarter last year, the firm posted $0.36 earnings per share. The business’s revenue for the quarter was up 69.7% on a year-over-year basis. Analysts forecast that Reddit will post 1.12 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Benjamin Seong Lee sold 3,320 shares of Reddit stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $260.22, for a total value of $863,930.40. Following the completion of the sale, the insider directly owned 62,608 shares in the company, valued at $16,291,853.76. This trade represents a 5.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO Christopher Brian Slowe sold 14,000 shares of the business’s stock in a transaction that occurred on Thursday, January 22nd. The stock was sold at an average price of $212.61, for a total transaction of $2,976,540.00. Following the sale, the chief technology officer directly owned 167,694 shares in the company, valued at approximately $35,653,421.34. This represents a 7.71% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 509,511 shares of company stock valued at $111,375,265. 34.25% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Reddit

A number of large investors have recently made changes to their positions in RDDT. Resona Asset Management Co. Ltd. boosted its holdings in Reddit by 53.2% in the 3rd quarter. Resona Asset Management Co. Ltd. now owns 30,944 shares of the company’s stock worth $7,166,000 after buying an additional 10,743 shares during the last quarter. Teacher Retirement System of Texas lifted its position in shares of Reddit by 880.5% in the second quarter. Teacher Retirement System of Texas now owns 94,676 shares of the company’s stock valued at $14,255,000 after acquiring an additional 85,020 shares in the last quarter. Optimize Financial Inc acquired a new stake in shares of Reddit in the third quarter worth approximately $1,420,000. Plato Investment Management Ltd boosted its stake in shares of Reddit by 120.2% in the second quarter. Plato Investment Management Ltd now owns 2,970 shares of the company’s stock worth $446,000 after acquiring an additional 1,621 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC increased its position in shares of Reddit by 95.4% during the third quarter. Wealth Enhancement Advisory Services LLC now owns 16,139 shares of the company’s stock worth $3,712,000 after purchasing an additional 7,881 shares in the last quarter.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Strong Q4 results and raised guidance — Reddit reported Q4 EPS and revenue above estimates and forecast Q1 revenue above Street expectations, a key reason the stock rallied after the print. Reddit forecasts revenue above estimates as AI fuels ad sales
• Positive Sentiment: $1 billion share buyback announced — management authorized a sizable repurchase program that should support EPS and reduce float over time. Reddit Reports Fourth Quarter and Full Year 2025 Results; Announces $1 Billion Share Repurchase Program
• Positive Sentiment: Analysts reacting — several firms raised price targets and reaffirmed buy ratings after the quarter, signaling continued bullish institutional views. These Analysts Revise Their Forecasts On Reddit Following Q4 Results
• Neutral Sentiment: AI and product roadmap could drive longer-term ad monetization — management highlighted AI search and ad tools as growth drivers, but monetization timelines remain multi-quarter. Reddit looks to AI search as its next big opportunity
• Neutral Sentiment: M&A appetite announced — Reddit told analysts it’s scouting adtech and other buys that either scale across Reddit or grow users; strategic but uncertain near-term impact. Reddit says it’s looking for more acquisitions in adtech and elsewhere
• Negative Sentiment: CEO insider selling reported — recent disclosure of a multi-million-dollar sale by the CEO has been cited as a near-term selling catalyst. Insider Selling: Reddit (NYSE:RDDT) CEO Sells $3,297,240.00 in Stock
• Negative Sentiment: Transparency change: company plans to stop disclosing logged‑in vs. logged‑out user counts in 2026 — investors may view that as reduced visibility into engagement trends. Reddit (RDDT) plans to stop disclosing logged-in and logged-out user numbers in 2026
• Negative Sentiment: Valuation and profit-taking — after the post-earnings jump, some investors appear to be locking in gains amid divergent DCF/valuation views and very high intraday volume, pressuring the share price. Reddit (RDDT) Valuation Check As Shares Lag And DCF Views Sharply Diverge

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.