Reddit (NYSE:RDDT) Earns “Buy” Rating from Needham & Company LLC

Reddit (NYSE:RDDT)‘s stock had its “buy” rating reaffirmed by Needham & Company LLC in a research report issued to clients and investors on Friday,Benzinga reports. They currently have a $300.00 target price on the stock. Needham & Company LLC’s price target would suggest a potential upside of 103.53% from the company’s current price.

Other equities research analysts also recently issued reports about the stock. Rothschild & Co Redburn set a $110.00 price objective on shares of Reddit in a report on Monday. Jefferies Financial Group dropped their price objective on shares of Reddit from $285.00 to $250.00 and set a “buy” rating on the stock in a report on Tuesday, March 10th. B. Riley Financial upped their price objective on shares of Reddit from $245.00 to $250.00 and gave the company a “buy” rating in a report on Friday, February 6th. Oppenheimer dropped their price objective on shares of Reddit from $300.00 to $250.00 and set an “outperform” rating on the stock in a report on Friday, February 6th. Finally, Citigroup reissued an “outperform” rating on shares of Reddit in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $229.79.

Reddit Stock Down 0.2%

RDDT opened at $147.40 on Friday. The stock has a market cap of $28.16 billion, a price-to-earnings ratio of 56.26, a PEG ratio of 1.07 and a beta of 2.40. Reddit has a twelve month low of $94.89 and a twelve month high of $282.95. The company’s 50-day moving average price is $144.12 and its two-hundred day moving average price is $184.31.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, April 30th. The company reported $1.01 EPS for the quarter, beating the consensus estimate of $0.62 by $0.39. The business had revenue of $663.41 million for the quarter, compared to the consensus estimate of $607.74 million. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The company’s revenue was up 69.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.13 earnings per share. As a group, sell-side analysts anticipate that Reddit will post 4.02 earnings per share for the current year.

Insider Activity at Reddit

In other Reddit news, CTO Christopher Brian Slowe sold 19,036 shares of the stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $144.05, for a total transaction of $2,742,135.80. Following the transaction, the chief technology officer directly owned 185,057 shares in the company, valued at $26,657,460.85. This trade represents a 9.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the transaction, the chief operating officer owned 1,088,451 shares in the company, valued at $175,752,182.97. The trade was a 3.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have purchased 61,000 shares of company stock valued at $8,870,815 and have sold 280,441 shares valued at $40,873,759. Insiders own 34.25% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of RDDT. NewEdge Advisors LLC grew its position in Reddit by 143.3% during the first quarter. NewEdge Advisors LLC now owns 7,982 shares of the company’s stock valued at $837,000 after acquiring an additional 4,701 shares during the last quarter. Empowered Funds LLC bought a new position in Reddit during the first quarter valued at approximately $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Reddit by 106.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company’s stock valued at $22,759,000 after acquiring an additional 111,780 shares during the last quarter. Focus Partners Wealth grew its position in Reddit by 40.8% during the first quarter. Focus Partners Wealth now owns 10,224 shares of the company’s stock valued at $1,073,000 after acquiring an additional 2,965 shares during the last quarter. Finally, Geneos Wealth Management Inc. grew its position in Reddit by 344.6% during the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock valued at $39,000 after acquiring an additional 286 shares during the last quarter.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q1 results beat expectations — Reddit reported EPS of $1.01 vs. $0.62 consensus and revenue of $663.4M vs. $607.7M expected; ad revenue surged ~74%, and the company posted a $204M profit, signaling improved monetization and operating leverage. MarketBeat Earnings Summary
• Positive Sentiment: Management issued stronger Q2 revenue guidance of $715M–$725M (above consensus ~$713M), reinforcing the view that ad demand and AI tools will sustain growth — a key driver of the intraday rally. Reuters Guidance Story
• Positive Sentiment: AI-driven ad products highlighted as growth engine — management and coverage emphasize Reddit’s tools that improve ad performance and yield faster monetization of community content, which lifted investor optimism and premarket buying. Reuters: AI-Driven Ad Growth
• Neutral Sentiment: Analyst and media coverage — multiple outlets (CNBC, WSJ, Seeking Alpha) replayed the beat + guide, providing broad visibility; transcripts and investor materials are available for deeper due diligence. Earnings Call Transcript
• Neutral Sentiment: CEO commentary frames Reddit as “the fuel” for AI — positioning the company as a strategic data/engagement asset for models, which could support long-term strategic value but also invites regulatory/data-use scrutiny. CNBC Interview
• Negative Sentiment: Valuation and volatility risks — RDDT trades at high multiples (P/E ~56) with a beta ~2.4 and remains well below its 200‑day moving average, so upside from this print may be limited if growth slows or if investors take profits. WSJ Coverage / Context

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.