Reddit Inc. (NYSE:RDDT) Stock Has Average Target Price of $219.29

Reddit Inc. (NYSE:RDDT) has received an average rating of “Moderate Buy” from the twenty-nine ratings firms that are currently covering the stock, Marketbeat.com reports. Nine equities research analysts have rated the stock with a hold rating, seventeen have issued a buy rating and three have assigned a strong buy rating to the company. The average 12 month price target among brokers that have covered the stock in the last year is $219.29.

Several research firms recently commented on RDDT. Citigroup restated a “market outperform” rating on shares of Reddit in a report on Wednesday, October 14th. Guggenheim reiterated a “buy” rating on shares of Reddit in a research note on Wednesday, September 16th. KeyCorp began coverage on shares of Reddit in a research report on Wednesday, July 29th. They issued an “overweight” rating and a $225.00 target price for the company. Morgan Stanley cut their target price on shares of Reddit from $240.00 to $210.00 and set an “overweight” rating for the company in a research report on Friday, August 21st. Finally, JPMorgan Chase & Co. decreased their target price on shares of Reddit from $200.00 to $185.00 and set a “neutral” rating for the company in a research note on Friday, July 31st.

Insider Buying and Selling

In other news, COO Jennifer Wong sold 60,000 shares of the company’s stock in a transaction dated Wednesday, October 14th. The stock was sold at an average price of $150.55, for a total transaction of $9,033,000.00. Following the completion of the sale, the chief operating officer owned 1,012,226 shares in the company, valued at approximately $152,390,624.30. This represents a 5.60% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total value of $820,069.76. Following the completion of the transaction, the director directly owned 27,087 shares in the company, valued at $4,331,753.04. The trade was a 15.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 306,052 shares of company stock worth $49,754,523. Corporate insiders own 28.48% of the company’s stock.

Institutional Investors Weigh In On Reddit

Several hedge funds have recently made changes to their positions in RDDT. Gerber Kawasaki Wealth & Investment Management grew its holdings in shares of Reddit by 5.7% during the 3rd quarter. Gerber Kawasaki Wealth & Investment Management now owns 3,560 shares of the company’s stock worth $507,000 after purchasing an additional 192 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its stake in Reddit by 1.9% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 245,252 shares of the company’s stock worth $34,934,000 after purchasing an additional 4,659 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Reddit in the third quarter valued at about $5,212,000. Profund Advisors LLC acquired a new position in Reddit during the 3rd quarter worth about $1,353,000. Finally, ProShare Advisors LLC bought a new stake in Reddit during the 3rd quarter worth about $3,880,000.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q3 results exceeded expectations. Reddit reported earnings of $1.40 per share versus the $1.31–$1.33 analyst consensus, while revenue increased 53% year over year to approximately $895 million, ahead of estimates near $875 million. EPS also rose from $0.80 in the year-ago quarter. Reddit Inc. Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company’s profitability remained strong, with a reported 31.35% net margin and 29.02% return on equity. Zacks Research also upgraded Reddit from “Hold” to “Strong Buy,” providing a potentially supportive analyst signal. Zacks Research rating
• Neutral Sentiment: Reddit is testing a “For You” feed alongside its “Following” feed, a move intended to improve content discovery and engagement but still unproven financially. Reddit adopts the For You feed
• Negative Sentiment: Forward guidance and user trends overshadowed the earnings beat. Reports indicated that the company’s outlook pressured the stock, raising concerns that growth could moderate despite the strong quarter. Reddit Q3 highlights
• Negative Sentiment: U.S. daily users declined by roughly 0.9 million, while international users increased by 15.2 million. Because Reddit generates about $13.82 per U.S. user per quarter versus $2.43 internationally, the geographic mix shift could weigh on monetization and future revenue quality. Reddit earns more from fewer U.S. users
• Negative Sentiment: Google search referrals to Reddit have declined amid AI-powered search changes. Management plans to test requiring visitors to log in, which could reduce scraping and improve registration but may also limit casual traffic and further expose user-growth concerns. Reddit search traffic declines

Reddit Stock Down 3.3%

Shares of Reddit stock opened at $130.29 on Tuesday. Reddit has a 12 month low of $119.27 and a 12 month high of $263.50. The stock has a market cap of $25.07 billion, a PE ratio of 31.33, a price-to-earnings-growth ratio of 0.62 and a beta of 2.05. The business has a fifty day simple moving average of $151.54 and a 200-day simple moving average of $161.02.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.07. The company had revenue of $894.96 million for the quarter, compared to analysts’ expectations of $874.91 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%. The business’s revenue for the quarter was up 53.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.80 EPS. Analysts expect that Reddit will post 5.28 EPS for the current fiscal year.

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and activities. Members can submit text posts, links, images and videos, as well as comment on and vote on content. The platform includes thousands of communities, commonly known as subreddits, covering subjects such as news, entertainment, technology, sports, finance and lifestyle.

Reddit generates revenue primarily through digital advertising, offering advertisers access to audiences based on community interests and user engagement.