Analysts Set Reddit Inc. (NYSE:RDDT) PT at $238.78

Reddit Inc. (NYSE:RDDT) has earned an average recommendation of “Moderate Buy” from the thirty brokerages that are currently covering the company, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation, eleven have given a hold recommendation, seventeen have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $238.7778.

Several analysts have issued reports on the stock. Robert W. Baird set a $200.00 target price on shares of Reddit in a research note on Friday, February 6th. Argus set a $300.00 price target on Reddit in a research report on Friday, January 9th. Citigroup increased their price objective on Reddit from $250.00 to $265.00 and gave the stock a “buy” rating in a research note on Monday, November 3rd. The Goldman Sachs Group lowered their target price on Reddit from $236.00 to $206.00 and set a “neutral” rating on the stock in a research note on Friday, February 6th. Finally, Wall Street Zen upgraded Reddit from a “hold” rating to a “buy” rating in a report on Saturday, February 14th.

Insider Transactions at Reddit

In other news, CEO Steve Ladd Huffman sold 18,000 shares of the company’s stock in a transaction on Monday, December 15th. The shares were sold at an average price of $220.28, for a total value of $3,965,040.00. Following the transaction, the chief executive officer directly owned 448,576 shares of the company’s stock, valued at approximately $98,812,321.28. This represents a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CTO Christopher Brian Slowe sold 19,036 shares of the stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $144.05, for a total value of $2,742,135.80. Following the sale, the chief technology officer owned 185,057 shares of the company’s stock, valued at approximately $26,657,460.85. This represents a 9.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 449,084 shares of company stock worth $94,999,709. 34.25% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of RDDT. Pacer Advisors Inc. raised its stake in shares of Reddit by 64.2% during the 4th quarter. Pacer Advisors Inc. now owns 318,153 shares of the company’s stock worth $73,134,000 after purchasing an additional 124,394 shares in the last quarter. Floyd Financial Group LLC acquired a new position in Reddit in the fourth quarter worth approximately $1,216,000. Compound Planning Inc. increased its holdings in Reddit by 23.4% in the fourth quarter. Compound Planning Inc. now owns 1,624 shares of the company’s stock worth $373,000 after buying an additional 308 shares during the last quarter. Invesco Ltd. raised its position in Reddit by 36.7% during the fourth quarter. Invesco Ltd. now owns 2,033,626 shares of the company’s stock valued at $467,470,000 after acquiring an additional 545,685 shares in the last quarter. Finally, Evansbrook LLC acquired a new stake in Reddit in the fourth quarter valued at approximately $615,000.

Reddit Price Performance

Shares of RDDT opened at $149.82 on Thursday. The company has a 50-day moving average of $199.16 and a two-hundred day moving average of $212.19. The stock has a market cap of $28.62 billion, a price-to-earnings ratio of 57.18, a PEG ratio of 1.06 and a beta of 2.17. Reddit has a one year low of $79.75 and a one year high of $282.95.

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

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q4 beat and follow?on director buy reinforce momentum: Reddit reported a strong quarter (beat on EPS and revenue, accelerating ad monetization) and a director purchase after earnings, which traders view as confirmation of the growth story. Reddit Valuation Check After Earnings Beat And Director Share Purchase
• Positive Sentiment: AI licensing upside upgraded thesis: A Seeking Alpha piece upgrades Reddit based on higher?than?expected AI licensing revenue potential, highlighting high gross margins and sizable revenue growth that could diversify revenue beyond advertising. Reddit: I May Have Underestimated Its AI Revenue Potential
• Positive Sentiment: Ad product strength vs. peers: Analysts note rising ARPU, surging ad revenue and AI?driven ad products (Max campaigns) that may give RDDT an edge over peers like Snap if digital ad growth continues. Reddit vs. Snap: Which Social Media Ad Stock Has an Edge Now?
• Neutral Sentiment: Stock is a trending name / watchlist pick: Zacks flags RDDT as a highly searched/trending ticker — useful for flow and volatility but not a company?specific fundamental catalyst. Reddit Inc. (RDDT) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Featured in software trade chatter: A market commentator included RDDT in a software buying theme, which can attract short?term traders but isn’t a company?specific catalyst. RDDT, FTNT, CLBT & PLTR to Lead “Rip-Your-Face-Off” Software Rally?
• Negative Sentiment: UK regulatory fine creates overhang: Britain’s ICO fined Reddit ~£14.47m (~$19.5–20m) for children’s privacy failures — a material penalty that raises regulatory and compliance costs and could weigh on international growth plans. UK privacy watchdog fines Reddit $20 million
• Negative Sentiment: Clustered insider selling: Multiple senior execs (CTO Christopher Slowe, COO Jennifer Wong, CAO Michelle Reynolds and others) sold large blocks the same week — a signal investors watch closely for sentiment or liquidity reasons. SEC Form 4 (example insider sale)
• Negative Sentiment: Valuation concerns remain: Contrarian analysis argues Reddit’s valuation is stretched despite strong growth, which could cap upside if execution or ad growth disappoints. Reddit’s Valuation Makes No Sense

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.