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

Reddit Inc. (NYSE:RDDT)’s stock price gapped up before the market opened on Friday after an insider bought additional shares in the company. 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 trading hands.

Specifically, Director Sarah E. Farrell bought 6,700 shares of the company’s stock in a transaction on Wednesday, February 11th. The stock was acquired at an average price 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 represents a 15.30% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Sarah E. Farrell acquired 43,800 shares of the stock in a transaction on Tuesday, February 10th. The stock was bought at an average cost of $149.52 per share, with a total value of $6,548,976.00. Following the completion of the transaction, the director owned 43,800 shares in the company, valued at $6,548,976. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. UBS Group set a $265.00 price target on Reddit in a research note on Tuesday, January 13th. The Goldman Sachs Group lowered their price target on shares of Reddit from $236.00 to $206.00 and set a “neutral” rating for the company in a research report on Friday, February 6th. Bank of America lifted their price objective on shares of Reddit from $180.00 to $210.00 and gave the company a “neutral” rating in a report on Friday, October 31st. Truist Financial upped their target price on Reddit from $270.00 to $275.00 and gave the stock a “buy” rating in a report on Friday, February 6th. Finally, Guggenheim increased their target price on Reddit from $245.00 to $255.00 and gave the company a “buy” rating in a research report on Friday, February 6th. One investment 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 given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $240.93.

Key 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?

Reddit Price Performance

The company has a market cap of $26.46 billion, a P/E ratio of 53.29, a PEG ratio of 1.04 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 $214.87.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Huntington National Bank increased its holdings in shares of Reddit by 25.6% during the third quarter. Huntington National Bank now owns 270 shares of the company’s stock valued at $62,000 after acquiring an additional 55 shares in the last quarter. Institute for Wealth Management LLC. increased its stake in Reddit by 6.1% in the 4th quarter. Institute for Wealth Management LLC. now owns 1,071 shares of the company’s stock worth $246,000 after acquiring an additional 62 shares during the last quarter. Roxbury Financial LLC lifted its position in Reddit by 7.4% in the 4th quarter. Roxbury Financial LLC now owns 929 shares of the company’s stock worth $214,000 after buying an additional 64 shares during the last quarter. Resona Asset Management Co. Ltd. increased its stake in shares of Reddit by 0.3% in the second quarter. Resona Asset Management Co. Ltd. now owns 20,201 shares of the company’s stock worth $3,023,000 after buying an additional 65 shares during the period. Finally, AdvisorNet Financial Inc boosted its holdings in Reddit by 2.8% in the third quarter. AdvisorNet Financial Inc now owns 2,464 shares of the company’s stock valued at $567,000 after acquiring an additional 66 shares in the last quarter.

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.