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

Guggenheim reaffirmed their buy rating on shares of Reddit (NYSE:RDDT) in a report published on Friday morning,Benzinga reports. They currently have a $245.00 target price on the stock.

RDDT has been the subject of a number of other research reports. Royal Bank Of Canada reissued a “sector perform” rating on shares of Reddit in a research report on Wednesday, October 1st. Evercore ISI started coverage on Reddit in a research report on Monday, January 12th. They set an “outperform” rating and a $320.00 price target on the stock. Truist Financial set a $270.00 price objective on Reddit in a report on Friday, October 31st. Citigroup boosted their target price on Reddit from $250.00 to $265.00 and gave the stock a “buy” rating in a research note on Monday, November 3rd. Finally, Cantor Fitzgerald assumed coverage on Reddit in a research report on Thursday, January 8th. They set a “neutral” rating and a $240.00 target price on the stock. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $245.18.

Reddit Price Performance

Shares of RDDT stock opened at $218.47 on Friday. The stock’s 50-day moving average is $225.46 and its 200 day moving average is $212.54. Reddit has a 1-year low of $79.75 and a 1-year high of $282.95. The company has a market cap of $41.40 billion, a P/E ratio of 125.56, a PEG ratio of 1.46 and a beta of 2.17.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, October 30th. The company reported $0.80 EPS for the quarter, topping analysts’ consensus estimates of $0.50 by $0.30. Reddit had a net margin of 18.33% and a return on equity of 14.94%. The business had revenue of $584.91 million during the quarter, compared to the consensus estimate of $546.65 million. During the same period in the previous year, the company posted $0.16 earnings per share. The firm’s revenue was up 67.9% on a year-over-year basis. On average, analysts anticipate that Reddit will post 1.12 EPS for the current year.

Insiders Place Their Bets

In other Reddit news, insider Benjamin Seong Lee sold 3,320 shares of the company’s stock in a transaction on Friday, January 9th. The shares were sold at an average price of $260.22, for a total value of $863,930.40. Following the sale, the insider directly owned 62,608 shares of the company’s stock, valued at approximately $16,291,853.76. This represents a 5.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Andrew Vollero sold 3,674 shares of Reddit stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $261.21, for a total value of $959,685.54. Following the transaction, the chief financial officer owned 251,644 shares of the company’s stock, valued at $65,731,929.24. The trade was a 1.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 509,511 shares of company stock worth $111,394,344. Company insiders own 34.25% of the company’s stock.

Institutional Trading of Reddit

Several hedge funds and other institutional investors have recently bought and sold shares of RDDT. Teacher Retirement System of Texas raised its holdings in Reddit by 880.5% in the 2nd quarter. Teacher Retirement System of Texas now owns 94,676 shares of the company’s stock worth $14,255,000 after purchasing an additional 85,020 shares during the period. Union Bancaire Privee UBP SA purchased a new stake in shares of Reddit in the second quarter valued at approximately $2,078,000. J. Safra Sarasin Holding AG purchased a new stake in shares of Reddit in the second quarter valued at approximately $226,000. Plato Investment Management Ltd raised its stake in shares of Reddit by 120.2% during the 2nd quarter. Plato Investment Management Ltd now owns 2,970 shares of the company’s stock worth $446,000 after buying an additional 1,621 shares during the period. Finally, Police & Firemen s Retirement System of New Jersey purchased a new position in shares of Reddit during the 2nd quarter valued at approximately $2,666,000.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Guggenheim reaffirmed a “buy” and set a $245 price target, implying meaningful upside from current levels and providing concrete analyst support for the rally. Guggenheim Buy Rating / Benzinga
• Positive Sentiment: A bullish Seeking Alpha note draws parallels between Reddit’s current monetization and early-2012 Facebook, projecting large upside if user and ARPU trends persist — a narrative that fuels long-term growth expectations. Reddit: Parallels To 2012 Facebook
• Positive Sentiment: High-visibility endorsements — notably Jim Cramer saying he “likes the company right here” and articles highlighting reasons investors favor Reddit — are lifting sentiment among retail investors. Jim Cramer Likes Reddit
• Neutral Sentiment: Analyst commentary is shifting: some pieces describe a rewriting of the price-target narrative as new estimates and multipliers are debated — this limits volatility but keeps the stock sensitive to upgrades/downgrades. Shifting Price Target Narrative / Yahoo Finance
• Neutral Sentiment: Valuation checks after recent share swings highlight high P/E and expected EPS growth; these analyses frame upside scenarios but also underline sensitivity to execution and ARPU trajectory. Valuation Check / Yahoo Finance
• Negative Sentiment: Insider selling by COO Jennifer L. Wong (multiple filings showing sizable share disposals) has weighed on sentiment and was cited as a driver of earlier price weakness; investors watch whether sales continue. COO Insider Sale / SEC Filing
• Negative Sentiment: Coverage noting a pullback tied to insider selling (reported ~4.4% drop) underscores short-term downside risk if sentiment flips or if growth guidance disappoints. Stock Down on Insider Selling / American Banking News
• Negative Sentiment: Critical analysis warns Reddit must grow at Meta-like scale to justify rich multiples and notes tougher competitive/monetization challenges, keeping execution risk top of mind for investors. Growth Challenges / Seeking Alpha

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.