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

Reddit (NYSE:RDDT)‘s stock had its “buy” rating reissued by analysts at DA Davidson in a note issued to investors on Friday,Benzinga reports. They presently have a $200.00 target price on the stock. DA Davidson’s price target indicates a potential upside of 27.31% from the company’s previous close.

Several other brokerages have also recently issued reports on RDDT. Citigroup restated an “outperform” rating on shares of Reddit in a research report on Friday. B. Riley Financial upped their price target on Reddit from $245.00 to $250.00 and gave the stock a “buy” rating in a research note on Friday, February 6th. The Goldman Sachs Group lowered their price objective on shares of Reddit from $206.00 to $180.00 and set a “neutral” rating on the stock in a research report on Tuesday, April 14th. Argus set a $300.00 price objective on shares of Reddit in a research note on Friday, January 9th. Finally, Citizens Jmp reduced their price objective on shares of Reddit from $300.00 to $250.00 and set a “market outperform” rating for the company in a research report on Wednesday, April 22nd. 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 stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $230.75.

Reddit Price Performance

RDDT stock opened at $157.10 on Friday. The business’s 50-day moving average is $144.12 and its two-hundred day moving average is $184.31. The firm has a market capitalization of $30.01 billion, a P/E ratio of 61.48, a P/E/G ratio of 1.07 and a beta of 2.40. Reddit has a 1 year low of $94.89 and a 1 year high of $282.95.

Reddit (NYSE:RDDT) last issued its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.39. The firm had revenue of $663.41 million for the quarter, compared to analysts’ expectations of $607.74 million. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The firm’s revenue was up 69.1% compared to the same quarter last year. During the same quarter last year, the company earned $0.13 earnings per share. On average, analysts expect that Reddit will post 4.02 EPS for the current year.

Insider Activity

In other news, CTO Christopher Brian Slowe sold 15,500 shares of the stock in a transaction dated 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 transaction, the chief technology officer directly owned 38,413 shares in the company, valued at $5,787,686.71. This represents a 28.75% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of the firm’s stock in a transaction that occurred 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 completion of the sale, the chief operating officer directly owned 1,088,451 shares in the company, valued at $175,752,182.97. This represents a 3.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders purchased 61,000 shares of company stock valued at $8,870,815 and sold 280,441 shares valued at $40,873,759. Insiders own 34.25% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Raiffeisen Bank International AG purchased a new stake in Reddit during the third quarter valued at about $25,000. GW&K Investment Management LLC purchased a new stake in shares of Reddit during the 3rd quarter worth about $30,000. Cornerstone Planning Group LLC increased its position in Reddit by 13,500.0% during the 3rd quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock worth $31,000 after purchasing an additional 135 shares in the last quarter. LOM Asset Management Ltd purchased a new position in Reddit in the fourth quarter valued at approximately $33,000. Finally, Noble Wealth Management PBC purchased a new stake in Reddit during the fourth quarter worth approximately $34,000.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q1 results beat and strong guidance — Reddit posted a sizable beat on revenue and EPS, delivered a $204M profit, and guided Q2 revenue above consensus, supporting the rally. Reddit Reports First Quarter 2026 Results
• Positive Sentiment: AI-driven ad products cited as the growth engine — Company commentary and multiple reports point to stronger returns from AI advertising tools as the key driver of higher ad sales and the bullish revenue outlook. Reddit rallies as AI?driven ad growth fuels strong revenue outlook
• Positive Sentiment: Market reaction in premarket/after-hours trading — Reports show shares jumped substantially in premarket trading after the prints and guidance, reflecting renewed investor enthusiasm. Reddit stock jumps 12%: can AI-driven ads spark stock revival?
• Positive Sentiment: Analyst support — Needham reaffirmed a Buy and set a $300 price target, signaling bullish analyst conviction that could reinforce momentum. Benzinga
• Neutral Sentiment: Product/engagement improvement — Weekly search usage is up ~30% YoY, showing product improvements that could help ad targeting and engagement over time. People are finally using Reddit’s search
• Neutral Sentiment: Earnings call transcript and metric details available — The full transcript and metric breakdowns provide more color but contain no immediate surprises beyond management’s upbeat commentary. Reddit Q1 2026 Earnings Call Transcript
• Negative Sentiment: Mixed coverage on profitability detail — One outlet framed the quarter as an earnings “miss” offset by adjusted EBITDA and revenue strength; such mixed narratives can create short-term volatility despite the beat. Reddit stock climbs as revenue, adjusted EBITDA surge offsets earnings miss

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.