Reddit (NYSE:RDDT) Earns Overweight Rating from Piper Sandler

Reddit (NYSE:RDDT)‘s stock had its “overweight” rating reiterated by equities research analysts at Piper Sandler in a report issued on Friday,Benzinga reports. They currently have a $215.00 price target on the stock, up from their prior price target of $205.00. Piper Sandler’s price target would indicate a potential upside of 30.50% from the stock’s current price.

RDDT has been the topic of several other reports. The Goldman Sachs Group reaffirmed a “neutral” rating on shares of Reddit in a report on Friday. Truist Financial cut their price target on shares of Reddit from $275.00 to $260.00 and set a “buy” rating on the stock in a report on Tuesday, April 7th. Citigroup reissued an “outperform” rating on shares of Reddit in a report on Friday. Cantor Fitzgerald increased their target price on shares of Reddit from $170.00 to $180.00 and gave the stock a “neutral” rating in a report on Friday. Finally, B. Riley Financial increased their target price on shares of Reddit from $245.00 to $250.00 and gave the stock a “buy” rating in a report on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $227.71.

Reddit Price Performance

RDDT traded up $17.52 during trading on Friday, hitting $164.75. The company had a trading volume of 7,579,563 shares, compared to its average volume of 5,210,427. The company has a market cap of $31.47 billion, a PE ratio of 63.09, a P/E/G ratio of 1.07 and a beta of 2.40. The business has a 50-day moving average of $144.12 and a 200-day moving average of $184.31. Reddit has a 1-year low of $94.89 and a 1-year high of $282.95.

Reddit (NYSE:RDDT) last posted its quarterly earnings results 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 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 quarterly revenue was up 69.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.13 earnings per share. Research analysts forecast that Reddit will post 4.02 earnings per share for the current year.

Insider Buying and Selling at Reddit

In related 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 value of $2,335,385.00. Following the sale, the chief technology officer owned 38,413 shares of the company’s stock, valued at $5,787,686.71. This trade represents a 28.75% decrease in their position. The transaction was disclosed in a legal filing 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 stock in a transaction dated 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 approximately $175,752,182.97. This trade represents a 3.47% decrease in their position. 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 three months, insiders purchased 61,000 shares of company stock valued at $8,870,815 and sold 280,441 shares valued at $40,873,759. Company insiders own 34.25% of the company’s stock.

Institutional Trading of Reddit

A number of large investors have recently modified their holdings of RDDT. Capital World Investors acquired a new stake in shares of Reddit in the 4th quarter worth about $1,293,258,000. Norges Bank acquired a new stake in shares of Reddit in the 4th quarter worth about $372,047,000. Vanguard Group Inc. increased its holdings 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 acquiring an additional 1,401,293 shares during the period. Invesco Ltd. increased its holdings in shares of Reddit by 419.0% in the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company’s stock worth $342,212,000 after acquiring an additional 1,201,237 shares during the period. Finally, State Street Corp increased its holdings in shares of Reddit by 138.5% in the 2nd quarter. State Street Corp now owns 2,030,139 shares of the company’s stock worth $305,678,000 after acquiring an additional 1,178,890 shares during the period.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q1 results materially beat expectations — Reddit reported $663M in revenue (well above estimates) and $1.01 adjusted EPS, supported by a ~69% YoY revenue increase and a ~74% jump in ad revenue, signaling stronger monetization. Read More.
• Positive Sentiment: Company provided upbeat Q2 revenue guidance ($715M–$725M), above Street estimates, reinforcing the view that AI-driven ad products are translating into measurable revenue growth. Read More.
• Positive Sentiment: Management and press highlights AI-driven ad performance and product traction (including improved search usage), supporting sustainable ad monetization and longer-term TAM expansion. Read More.
• Positive Sentiment: Several brokers reaffirmed buy ratings and high price targets (Needham $300, DA Davidson $200), indicating continued analyst confidence in upside after the quarter. Read More.
• Neutral Sentiment: Coverage update: Citizens Jmp trimmed its price target from $250 to $240 but kept a “market outperform” rating — a modest pullback in optimism but still positive relative to current levels. Read More.
• Positive Sentiment: Market commentary and headlines emphasize the role of Reddit’s unique community content as “fuel” for AI, which investors interpret as a durable competitive advantage for ad products. Read More.
• Negative Sentiment: Some analyst notes and press pieces highlight differing valuations and mixed views across coverage — price targets vary widely, reflecting uncertainty about how sustainably Reddit can scale margins and ad yields. Read More.

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.