Shares of Reddit Inc. (NYSE:RDDT – Get Free Report) have been assigned an average rating of “Moderate Buy” from the thirty-one ratings firms that are currently covering the stock, Marketbeat.com reports. Twelve investment analysts have rated the stock with a hold recommendation and nineteen have assigned a buy recommendation to the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $232.4828.
Several research firms have recently commented on RDDT. DA Davidson restated a “buy” rating and set a $200.00 price target on shares of Reddit in a research note on Thursday. Needham & Company LLC reiterated a “buy” rating and set a $300.00 price objective on shares of Reddit in a research report on Wednesday, June 24th. Truist Financial set a $265.00 price target on Reddit in a research note on Friday, May 1st. Weiss Ratings reiterated a “hold (c)” rating on shares of Reddit in a report on Friday, May 8th. Finally, Wedbush reiterated an “outperform” rating on shares of Reddit in a research note on Thursday.
Check Out Our Latest Stock Analysis on Reddit
Reddit Price Performance
Reddit (NYSE:RDDT – Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.39. The business had revenue of $663.41 million during the quarter, compared to analysts’ expectations of $607.74 million. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The company’s revenue for the quarter was up 69.1% on a year-over-year basis. During the same period in the previous year, the company earned $0.13 EPS. Equities research analysts anticipate that Reddit will post 4.85 earnings per share for the current year.
Insiders Place Their Bets
In related news, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction dated 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 completion of the transaction, the chief executive officer owned 373,814 shares in the company, valued at $66,636,083.64. This represents a 4.59% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the completion of the sale, the chief operating officer owned 1,088,451 shares in the company, valued at $172,541,252.52. The trade was a 3.47% 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. In the last quarter, insiders sold 169,141 shares of company stock worth $28,680,845. 28.48% of the stock is owned by company insiders.
Institutional Investors Weigh In On Reddit
A number of institutional investors have recently added to or reduced their stakes in RDDT. Capital World Investors bought a new position in shares of Reddit during the 4th quarter worth about $1,293,258,000. Norges Bank bought a new position in shares of Reddit in the fourth quarter valued at approximately $372,047,000. Invesco Ltd. increased its holdings in Reddit by 419.0% during the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company’s stock valued at $342,212,000 after purchasing an additional 1,201,237 shares in the last quarter. State Street Corp increased its stake in shares of Reddit by 138.5% in the second quarter. State Street Corp now owns 2,030,139 shares of the company’s stock valued at $305,678,000 after buying an additional 1,178,890 shares in the last quarter. Finally, Vanguard Group Inc. increased its position in Reddit by 8.9% in the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock valued at $3,062,339,000 after acquiring an additional 1,083,540 shares in the last quarter.
Key Headlines Impacting Reddit
Here are the key news stories impacting Reddit this week:
- Positive Sentiment: DA Davidson reaffirmed its buy rating on Reddit and set a $200 price target, implying upside from current levels. Benzinga
- Neutral Sentiment: Wall Street expects Reddit to report earnings growth in next week’s results, but Zacks noted the stock does not currently have the ideal setup for a likely earnings beat. Zacks
- Neutral Sentiment: Some coverage framed the recent pullback as either a buying opportunity or a valuation risk, reflecting debate over whether the stock’s premium is justified after its strong run. Yahoo Finance
- Negative Sentiment: Reports that Reddit may rethink its $60 million Google AI deal have raised concerns that a renewal delay or dispute could weaken a key licensing relationship. Yahoo Finance
- Negative Sentiment: Investors are also reacting to fears that Google’s AI summaries could reduce traffic to Reddit, which would pressure the platform’s advertising economics and near-term growth narrative. CNBC
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.
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