Reddit Inc. (NYSE:RDDT) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Reddit Inc. (NYSE:RDDT) has earned a consensus recommendation of “Moderate Buy” from the thirty-one brokerages that are presently covering the firm, Marketbeat Ratings reports. Twelve investment analysts have rated the stock with a hold recommendation and nineteen have assigned a buy recommendation to the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $231.7931.

A number of equities analysts have weighed in on the company. Wedbush assumed coverage on Reddit in a research report on Thursday. They set an “outperform” rating and a $250.00 price target for the company. Zacks Research downgraded shares of Reddit from a “strong-buy” rating to a “hold” rating in a report on Wednesday, June 3rd. Bank of America cut their price objective on shares of Reddit from $205.00 to $175.00 and set a “neutral” rating on the stock in a research report on Thursday, April 2nd. Weiss Ratings restated a “hold (c)” rating on shares of Reddit in a report on Friday, May 8th. Finally, Raymond James Financial set a $180.00 target price on shares of Reddit and gave the company a “market perform” rating in a research report on Friday, May 1st.

Reddit Price Performance

RDDT stock opened at $181.91 on Friday. The stock has a market capitalization of $35.02 billion, a P/E ratio of 51.97 and a beta of 1.93. The business has a 50-day moving average of $172.78 and a 200-day moving average of $169.74. Reddit has a fifty-two week low of $119.27 and a fifty-two week high of $282.95.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.62 by $0.39. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The business had revenue of $663.41 million during the quarter, compared to the consensus estimate of $607.74 million. During the same period last year, the company earned $0.13 earnings per share. Reddit’s quarterly revenue was up 69.1% on a year-over-year basis. Equities analysts expect that Reddit will post 4.85 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $173.13, for a total value of $3,116,340.00. Following the completion of the transaction, the chief executive officer owned 373,814 shares in the company, valued at $64,718,417.82. This trade represents a 4.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,166 shares of Reddit stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $176.94, for a total value of $6,930,032.04. Following the completion of the sale, the chief operating officer directly owned 1,050,339 shares in the company, valued at approximately $185,846,982.66. This represents a 3.59% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 169,141 shares of company stock valued at $28,680,845 in the last three months. 28.48% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Sunbelt Securities Inc. increased its position in shares of Reddit by 87.5% during the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after purchasing an additional 91 shares during the last quarter. Ascentis Independent Advisors bought a new stake in shares of Reddit during the 1st quarter worth approximately $30,000. LOM Asset Management Ltd acquired a new stake in shares of Reddit in the 4th quarter valued at approximately $33,000. Noble Wealth Management PBC acquired a new stake in shares of Reddit in the 4th quarter valued at approximately $34,000. Finally, Beacon Investment Advisory Services Inc. bought a new position in shares of Reddit in the second quarter valued at $35,000.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Wedbush initiated coverage on Reddit with an Outperform rating and a $250 price target, signaling strong confidence in the company’s long-term monetization potential. Benzinga article on Wedbush coverage
• Positive Sentiment: Analysts highlighted Reddit’s AI initiative, including partnerships, platform upgrades, and ad tools, as a growing driver of revenue and engagement. Zacks article on Reddit AI initiative
• Positive Sentiment: Jefferies said Reddit could beat second-quarter revenue and EBITDA expectations thanks to strong ad checks and improving user growth, which would support the bullish earnings narrative. Proactive Investors article on earnings beat potential
• Positive Sentiment: Several reports suggested Reddit stock may be undervalued relative to its AI and ad-growth outlook, with one piece citing as much as 47% upside based on those themes. Yahoo Finance article on undervaluation
• Neutral Sentiment: One article noted that analysts are still mixed on Reddit and other communication-services names, suggesting the stock may remain volatile as sentiment varies. The Globe and Mail article on conflicted analysts
• Negative Sentiment: Reddit also saw coverage around a recent selloff and questions about why the stock fell more than the broader market, indicating some traders are still taking profits after a strong run. Zacks article on recent decline

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.