Reddit (NYSE:RDDT) Upgraded at Wall Street Zen

Wall Street Zen upgraded shares of Reddit (NYSE:RDDT) from a hold rating to a buy rating in a research note published on Sunday morning.

A number of other equities analysts have also weighed in on RDDT. Jefferies Financial Group dropped their target price on shares of Reddit from $285.00 to $250.00 and set a “buy” rating for the company in a research report on Tuesday, March 10th. Argus set a $300.00 price target on shares of Reddit in a research note on Friday, January 9th. Morgan Stanley set a $240.00 price objective on Reddit in a research note on Friday, February 6th. Zacks Research downgraded shares of Reddit from a “strong-buy” rating to a “hold” rating in a report on Friday, December 26th. Finally, Truist Financial upped their target price on Reddit from $270.00 to $275.00 and gave the company a “buy” rating in a research note on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $242.19.

Reddit Trading Up 2.9%

Shares of RDDT opened at $144.00 on Friday. The business’s 50 day moving average is $173.34 and its 200 day moving average is $203.70. Reddit has a 12-month low of $79.75 and a 12-month high of $282.95. The company has a market capitalization of $27.51 billion, a PE ratio of 54.96, a price-to-earnings-growth ratio of 1.02 and a beta of 2.40.

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

Insider Activity

In other Reddit news, Director Sarah E. Farrell acquired 10,500 shares of the stock in a transaction dated Friday, March 13th. The stock was purchased at an average price of $132.26 per share, with a total value of $1,388,730.00. Following the transaction, the director directly owned 61,000 shares of the company’s stock, valued at $8,067,860. This trade represents a 20.79% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CTO Christopher Brian Slowe sold 9,500 shares of the business’s stock in a transaction on Monday, March 9th. The stock was sold at an average price of $136.55, for a total value of $1,297,225.00. Following the transaction, the chief technology officer owned 183,057 shares in the company, valued at approximately $24,996,433.35. This trade represents a 4.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have bought 61,000 shares of company stock worth $8,870,815 and have sold 378,330 shares worth $75,398,143. 34.25% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Reddit

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. grew its position in Reddit by 8.9% during the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock worth $3,062,339,000 after purchasing an additional 1,083,540 shares during the last quarter. Capital World Investors purchased a new position in Reddit in the 4th quarter worth $1,293,258,000. State Street Corp lifted its position in Reddit by 6.0% during the 4th quarter. State Street Corp now owns 2,631,332 shares of the company’s stock worth $604,864,000 after acquiring an additional 149,401 shares during the period. Geode Capital Management LLC lifted its position in Reddit by 4.7% during the 4th quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock worth $546,789,000 after acquiring an additional 106,821 shares during the period. Finally, Morgan Stanley grew its stake in Reddit by 11.4% during the 4th quarter. Morgan Stanley now owns 2,372,443 shares of the company’s stock valued at $545,354,000 after purchasing an additional 242,709 shares during the last quarter.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Strong Q4 fundamentals: recent coverage highlights a huge quarter — revenue up ~70% YoY and meaningful ARPU/monetization gains — which supports the case for continued ad growth and the stock’s re-rating. Reddit Stock: Why It May Finally Be Time to Buy the Dip
• Positive Sentiment: Director Sarah E. Farrell bought 10,500 shares (~$1.39M at ~$132.26), increasing her stake by ~20.8% — a direct insider buy that investors often view as a confidence signal. SEC Filing – Farrell Purchase
• Positive Sentiment: Bullish analyst/coverage momentum: the stock has an average “Moderate Buy” and several bullish pieces argue Reddit is underpriced given rapid ad monetization and AI-driven engagement. Average Recommendation Moderate Buy Is Reddit a Good Stock Now?
• Positive Sentiment: Ad product expansion: a PulsePoint partnership spotlights growth in higher-value healthcare advertising, reinforcing TAM and monetization upside. Reddit’s PulsePoint Tie Up Highlights Healthcare Ads
• Neutral Sentiment: Buyback ambition noted in reporting — potentially supportive for shares but details/timing remain unclear, so impact depends on execution. Surging Q4 Results, Buyback Ambition
• Neutral Sentiment: Competitive/regulatory context: comparisons to Meta highlight Reddit’s faster ad growth and product momentum, but scale and regulatory environment differ — this frames upside potential but with caveats. RDDT vs META: Which Has an Edge?
• Negative Sentiment: CEO Steve Huffman sold 18,000 shares (~$2.39M at ~$132.86). Insider sales can prompt short-term caution even when management retains a large stake. SEC Filing – Huffman Sale
• Negative Sentiment: Regulatory risk flagged alongside strong results — while earnings and monetization look good, potential regulatory scrutiny in ad/content areas is a recurring downside risk for large social platforms. Regulatory Risk Discussed

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.