Roth Capital Issues Pessimistic Estimate for Reddit Earnings

Reddit, Inc. (NYSE:RDDT) – Equities research analysts at Roth Capital cut their Q1 2025 earnings estimates for shares of Reddit in a research report issued to clients and investors on Monday, April 28th. Roth Capital analyst R. Kulkarni now anticipates that the company will post earnings per share of ($0.02) for the quarter, down from their prior forecast of $0.01. Roth Capital has a “Hold” rating on the stock. The consensus estimate for Reddit’s current full-year earnings is $1.12 per share. Roth Capital also issued estimates for Reddit’s Q2 2025 earnings at $0.00 EPS, Q3 2025 earnings at $0.19 EPS, Q4 2025 earnings at $0.46 EPS, FY2025 earnings at $0.64 EPS and FY2026 earnings at $1.43 EPS.

Reddit (NYSE:RDDT) last announced its quarterly earnings results on Wednesday, February 12th. The company reported $0.36 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.12. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%.

Several other analysts have also recently issued reports on RDDT. Roth Mkm cut Reddit from a “buy” rating to a “neutral” rating and upped their price objective for the stock from $116.00 to $195.00 in a report on Wednesday, January 22nd. Guggenheim lowered their price objective on shares of Reddit from $210.00 to $170.00 and set a “buy” rating for the company in a research report on Thursday, March 20th. JMP Securities set a $155.00 target price on shares of Reddit in a report on Friday, March 28th. Robert W. Baird increased their price target on shares of Reddit from $160.00 to $185.00 and gave the company a “neutral” rating in a report on Thursday, February 13th. Finally, Loop Capital restated a “buy” rating and set a $210.00 price objective on shares of Reddit in a research report on Tuesday, March 11th. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $142.22.

Reddit Trading Up 0.9 %

NYSE:RDDT opened at $122.30 on Wednesday. The business’s 50-day moving average is $119.68 and its 200 day moving average is $142.84. Reddit has a 12 month low of $44.15 and a 12 month high of $230.41. The company has a market capitalization of $22.12 billion and a P/E ratio of -15.82.

Institutional Investors Weigh In On Reddit

Several institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its stake in Reddit by 184.2% in the fourth quarter. Vanguard Group Inc. now owns 9,181,390 shares of the company’s stock valued at $1,500,606,000 after buying an additional 5,950,909 shares during the last quarter. Jennison Associates LLC acquired a new stake in Reddit in the 4th quarter worth approximately $494,861,000. Alliancebernstein L.P. grew its holdings in shares of Reddit by 1,011.1% during the fourth quarter. Alliancebernstein L.P. now owns 2,788,758 shares of the company’s stock valued at $455,795,000 after buying an additional 2,537,768 shares during the last quarter. Brooklyn FI LLC acquired a new position in shares of Reddit in the 4th quarter valued at $303,082,000. Finally, GQG Partners LLC purchased a new position in Reddit in the 4th quarter worth $271,539,000.

Insider Transactions at Reddit

In related news, Director David C. Habiger acquired 774 shares of the firm’s stock in a transaction that occurred on Wednesday, March 12th. The stock was purchased at an average cost of $130.36 per share, for a total transaction of $100,898.64. Following the purchase, the director now directly owns 30,808 shares of the company’s stock, valued at $4,016,130.88. This trade represents a 2.58 % increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Andrew Vollero sold 48,122 shares of Reddit stock in a transaction dated Monday, February 24th. The shares were sold at an average price of $162.80, for a total value of $7,834,261.60. Following the completion of the transaction, the chief financial officer now owns 599,295 shares in the company, valued at $97,565,226. This trade represents a 7.43 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 725,270 shares of company stock valued at $97,067,425.

About Reddit

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.