DA Davidson Reiterates Buy Rating for Reddit (NYSE:RDDT)

Reddit (NYSE:RDDT)‘s stock had its “buy” rating reiterated by research analysts at DA Davidson in a report released on Thursday,Benzinga reports. They currently have a $200.00 price target on the stock. DA Davidson’s price objective would suggest a potential upside of 18.52% from the company’s previous close.

A number of other equities research analysts have also commented on RDDT. Citizens Jmp reduced their price target on Reddit from $250.00 to $240.00 and set a “market outperform” rating on the stock in a research report on Friday, May 1st. Cantor Fitzgerald reaffirmed a “neutral” rating and issued a $200.00 price target on shares of Reddit in a research note on Monday. Weiss Ratings restated a “hold (c)” rating on shares of Reddit in a report on Friday, May 8th. Wells Fargo & Company boosted their target price on shares of Reddit from $176.00 to $187.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 7th. Finally, Zacks Research lowered shares of Reddit from a “strong-buy” rating to a “hold” rating in a report on Wednesday, June 3rd. Nineteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat.com, Reddit presently has an average rating of “Moderate Buy” and an average price target of $232.48.

Reddit Price Performance

Reddit stock opened at $168.75 on Thursday. The firm has a market cap of $32.49 billion, a PE ratio of 48.22 and a beta of 1.93. The stock’s fifty day moving average price is $174.67 and its two-hundred day moving average price is $167.69. Reddit has a one year low of $119.27 and a one year high of $282.95.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, beating 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 firm had revenue of $663.41 million during the quarter, compared to the consensus estimate of $607.74 million. During the same period in the prior year, the company posted $0.13 EPS. The company’s revenue was up 69.1% compared to the same quarter last year. Sell-side analysts expect that Reddit will post 4.85 earnings per share for the current fiscal year.

Insider Activity

In other Reddit news, CAO Michelle Marie Reynolds sold 808 shares of the business’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the transaction, the chief accounting officer owned 15,060 shares of the company’s stock, valued at approximately $3,012,000. The trade was a 5.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $178.26, for a total value of $3,208,680.00. Following the sale, the chief executive officer directly owned 373,814 shares of the company’s stock, valued at approximately $66,636,083.64. This represents a 4.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 169,141 shares of company stock valued at $28,680,845 over the last three months. Corporate insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

A number of large investors have recently added to or reduced their stakes in RDDT. Sidoxia Capital Management LLC bought a new position in shares of Reddit during the 2nd quarter valued at approximately $713,000. EverSource Wealth Advisors LLC increased its stake in shares of Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after purchasing an additional 64 shares during the last quarter. Sivia Capital Partners LLC raised its holdings in shares of Reddit by 7.8% in the 2nd quarter. Sivia Capital Partners LLC now owns 18,047 shares of the company’s stock worth $3,133,000 after purchasing an additional 1,309 shares during the period. Signaturefd LLC raised its holdings in shares of Reddit by 7.6% in the 2nd quarter. Signaturefd LLC now owns 878 shares of the company’s stock worth $152,000 after purchasing an additional 62 shares during the period. Finally, Bensler LLC purchased a new position in Reddit in the second quarter valued at approximately $1,376,000.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit was added to Wedbush’s Best Ideas list ahead of Q2 results, and DA Davidson reiterated a Buy rating with a $200 price target, signaling Wall Street still sees meaningful upside. Reddit added to Wedbush Best Ideas List ahead of Q2 results
• Positive Sentiment: Several recent bullish notes say Reddit’s fundamentals remain strong, with rapid revenue growth, high margins, and ad-driven expansion supporting the stock despite valuation concerns. Reddit: Ignore The Potential Google Scuffle And Carry On
• Positive Sentiment: Investors are looking for a Q2 beat, with guidance pointing to roughly 43% to 45% year-over-year revenue growth and a strong EBITDA margin, which could reinforce the growth story if delivered. Reddit: Why I’m Staying Bullish Into The Q2 Print
• Neutral Sentiment: Analyst commentary this week has focused on Reddit alongside other communication-services names, but no major new company-specific catalyst was disclosed in the headline item. Analysts Offer Insights on Communication Services Companies
• Neutral Sentiment: Reddit’s upcoming earnings report is expected to show growth, but some screening models suggest the setup is not ideal for a clean earnings beat, keeping expectations mixed. Reddit Inc. (RDDT) Reports Next Week: Wall Street Expects Earnings Growth
• Negative Sentiment: The main overhang is renewed uncertainty around Reddit’s reported $60 million-per-year Google AI licensing deal, with some reports suggesting Reddit may rethink the agreement if renewal talks stall or content restrictions emerge. Reddit (RDDT) May Rethink $60 Million Google AI Deal As Renewal Talks Drag
• Negative Sentiment: Recent reports of a possible Google content restriction or AI feud triggered a sharp drop in the stock and pushed Reddit below key moving averages, signaling weaker momentum in the near term. Reddit stock plunges on report of possible Google content restrictions

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.