Reddit (NYSE:RDDT) Shares Gap Up After Insider Buying Activity

Reddit Inc. (NYSE:RDDT)’s share price gapped up before the market opened on Friday after an insider bought additional shares in the company. The stock had previously closed at $131.07, but opened at $141.85. Reddit shares last traded at $139.6770, with a volume of 2,173,102 shares traded.

Specifically, Director Sarah E. Farrell bought 6,700 shares of the firm’s stock in a transaction that occurred on Wednesday, February 11th. The shares were acquired at an average cost of $139.27 per share, with a total value of $933,109.00. Following the acquisition, the director owned 50,500 shares of the company’s stock, valued at $7,033,135. The trade was a 15.30% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Sarah E. Farrell purchased 43,800 shares of the stock in a transaction that occurred on Tuesday, February 10th. The shares were acquired at an average cost of $149.52 per share, for a total transaction of $6,548,976.00. Following the completion of the transaction, the director owned 43,800 shares of the company’s stock, valued at $6,548,976. This trade represents a ? increase in their position. The disclosure for this purchase is available in the SEC filing.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on RDDT shares. Jefferies Financial Group increased their price target on shares of Reddit from $300.00 to $325.00 and gave the stock a “buy” rating in a research report on Thursday, December 11th. JPMorgan Chase & Co. cut their target price on shares of Reddit from $227.00 to $200.00 and set a “neutral” rating on the stock in a research report on Friday, February 6th. Needham & Company LLC reissued a “buy” rating and set a $300.00 target price on shares of Reddit in a research report on Friday, February 6th. Piper Sandler reaffirmed an “overweight” rating and set a $205.00 target price (down previously from $290.00) on shares of Reddit in a research note on Friday, February 6th. Finally, B. Riley Securities lifted their price target on shares of Reddit from $245.00 to $250.00 and gave the company a “buy” rating in a research note on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Reddit has an average rating of “Moderate Buy” and an average target price of $240.93.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Meltwater was named an official Reddit Data Partner — a validation that should expand third?party analytics and enterprise use of Reddit’s public content, which can increase platform value to advertisers. Meltwater Earns Official Data Partner Status with Reddit
• Positive Sentiment: Director Sarah E. Farrell materially increased her stake (large buys on 2/10 and 2/11 totaling multiple millions), a strong insider vote of confidence that markets often view as bullish for long?term fundamentals. Insider Buying: Farrell Purchases RDDT Stock
• Positive Sentiment: Shirofune ad integration and sell?side notes (Needham) highlight improving ad tooling and AI-driven product momentum that could sustain revenue growth and justify multiple expansion if execution continues. Shirofune Integration Puts Reddit Ads Directly Into Omnichannel Budget Decisions
• Neutral Sentiment: Reddit remains a high?interest ticker (heavy investor searches). That attention can amplify intraday volatility but is not itself a fundamental driver. Investors Heavily Search Reddit Inc.
• Negative Sentiment: CTO Christopher Slowe sold ~11,464 shares (~6.5% reduction in his holding), which can be interpreted as a negative signal and may have contributed to short?term selling pressure. SEC Form 4 — Slowe Sale
• Negative Sentiment: Analyst and press coverage points to a ~46% decline over the past month driven by macro headwinds and ad?market competition; that magnitude of drawdown often sparks momentum selling and dampens near?term sentiment. Reddit Stock Declines 46% in a Month
• Negative Sentiment: Deeper writeups on why shares plunged cite persistent macro and competitive risks to ad monetization that could pressure near?term revenue and multiples if they persist. Why Reddit Shares Plunged

Reddit Stock Up 6.7%

The company has a 50-day moving average of $214.67 and a 200 day moving average of $214.47. The firm has a market capitalization of $26.50 billion, a PE ratio of 53.38, a PEG ratio of 1.03 and a beta of 2.17.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, topping analysts’ consensus estimates of $0.96 by $0.28. The company had revenue of $725.61 million during the quarter, compared to the consensus estimate of $665.80 million. Reddit had a return on equity of 20.89% and a net margin of 24.05%.Reddit’s quarterly revenue was up 69.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.36 EPS. As a group, equities analysts anticipate that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. NewEdge Advisors LLC raised its holdings in Reddit by 143.3% in the 1st quarter. NewEdge Advisors LLC now owns 7,982 shares of the company’s stock worth $837,000 after purchasing an additional 4,701 shares in the last quarter. Empowered Funds LLC purchased a new stake in shares of Reddit during the first quarter valued at approximately $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Reddit by 106.3% during the 1st 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 purchasing an additional 111,780 shares during the last quarter. Focus Partners Wealth increased its holdings in Reddit by 40.8% in the 1st quarter. Focus Partners Wealth now owns 10,224 shares of the company’s stock worth $1,073,000 after buying an additional 2,965 shares in the last quarter. Finally, Geneos Wealth Management Inc. grew its stake in shares of Reddit by 344.6% in the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock worth $39,000 after acquiring an additional 286 shares during the period.

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.