Reddit (NYSE:RDDT) Receives “Buy” Rating from DA Davidson

DA Davidson reissued their buy rating on shares of Reddit (NYSE:RDDT) in a research note issued to investors on Friday morning,Benzinga reports. They currently have a $200.00 price objective on the stock.

RDDT has been the topic of several other reports. UBS Group set a $265.00 price objective on shares of Reddit in a research note on Tuesday, January 13th. Evercore reissued an “outperform” rating and issued a $290.00 price objective on shares of Reddit in a research note 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 research note on Friday, February 6th. The Goldman Sachs Group dropped their price objective on shares of Reddit from $206.00 to $180.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 14th. Finally, Wall Street Zen cut shares of Reddit from a “buy” rating to a “hold” rating in a research note on Wednesday, April 8th. Eighteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $228.61.

Reddit Trading Up 13.1%

Shares of Reddit stock traded up $19.30 during trading on Friday, reaching $166.53. The company’s stock had a trading volume of 14,213,044 shares, compared to its average volume of 3,857,244. The company has a 50-day moving average price of $144.12 and a two-hundred day moving average price of $184.31. The firm has a market cap of $31.81 billion, a PE ratio of 63.56, a P/E/G ratio of 1.07 and a beta of 2.40. Reddit has a fifty-two week low of $94.89 and a fifty-two week high of $282.95.

Reddit (NYSE:RDDT) last announced its quarterly earnings data on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.39. The company had revenue of $663.41 million for the quarter, compared to analysts’ expectations of $607.74 million. Reddit had a net margin of 28.60% and a return on equity of 26.78%. Reddit’s revenue was up 69.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.13 EPS. On average, analysts predict that Reddit will post 4.02 earnings per share for the current fiscal year.

Insider Activity at Reddit

In other Reddit news, CTO Christopher Brian Slowe sold 15,500 shares of the business’s stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $150.67, for a total transaction of $2,335,385.00. Following the sale, the chief technology officer directly owned 38,413 shares in the company, valued at approximately $5,787,686.71. The trade was a 28.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 on Thursday, April 16th. The stock was sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the sale, 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. Over the last 90 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. Corporate insiders own 34.25% of the company’s stock.

Institutional Investors Weigh In On Reddit

Institutional investors and hedge funds have recently made changes to their positions in the business. Resona Asset Management Co. Ltd. boosted its position in shares of Reddit by 53.2% in the 3rd quarter. Resona Asset Management Co. Ltd. now owns 30,944 shares of the company’s stock worth $7,166,000 after buying an additional 10,743 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Reddit by 12.9% in the 3rd quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company’s stock worth $2,814,734,000 after buying an additional 1,401,293 shares in the last quarter. Optimize Financial Inc purchased a new stake in shares of Reddit in the 3rd quarter worth about $1,420,000. WT Asset Management Ltd purchased a new stake in shares of Reddit in the 3rd quarter worth about $92,973,000. Finally, Wealth Enhancement Advisory Services LLC boosted its position in shares of Reddit by 95.4% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 16,139 shares of the company’s stock worth $3,712,000 after buying an additional 7,881 shares in the last quarter.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q1 earnings and revenue beat — Reddit reported EPS of $1.01 (vs. ~$0.62 est.) and revenue of about $663M, a ~69% year‑over‑year jump; ad revenue rose sharply, underscoring improving monetization. Zacks: Reddit Q1 Earnings Beat
• Positive Sentiment: Upbeat near-term guidance — management gave Q2 revenue guidance (~$715M–$725M) above Street expectations, signaling continued ad demand momentum. Reuters: Reddit expects revenue above estimates
• Positive Sentiment: AI-driven ad products & search improvements gaining traction — exec commentary and coverage point to rising advertiser adoption of lower‑funnel, AI-enhanced ad tools and a ~30% YoY increase in weekly search usage, both supporting higher yield per user. Reuters: AI-driven ad growth fuels outlook TechCrunch: People are finally using Reddit’s search
• Positive Sentiment: Analyst support — several firms reaffirmed or raised targets (e.g., Piper Sandler raised its PT to $215; Needham reaffirmed buy with $300 PT; DA Davidson reaffirmed buy at $200), adding buy‑side validation. TickerReport / coverage on Piper Sandler
• Neutral Sentiment: Unusual options activity — traders purchased ~80,316 call options (about +88% vs. typical daily call volume), indicating speculative bullish positioning but not guaranteeing directional follow‑through.
• Neutral Sentiment: Cantor Fitzgerald raised its price target (to $180) but left a neutral rating — a mixed signal: higher target but not a bullish rating change. Benzinga: Cantor Fitzgerald update
• Negative Sentiment: Some analyst conflict and target trimming — Citizens Jmp reduced its target from $250 to $240 (still bullish stance), reflecting differing views on longer‑term upside and leaving room for skepticism about sustainability. Benzinga: Citizens Jmp update

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.