Reddit Inc. (NYSE:RDDT) Receives $220.90 Average Price Target from Analysts

Reddit Inc. (NYSE:RDDT) has been assigned a consensus rating of “Moderate Buy” from the thirty-two analysts that are covering the firm, MarketBeat reports. Eleven equities research analysts have rated the stock with a hold rating, nineteen have assigned a buy rating and two have assigned a strong buy rating to the company. The average 1-year target price among brokers that have covered the stock in the last year is $220.9032.

Several equities research analysts recently weighed in on the company. Citigroup restated a “market outperform” rating on shares of Reddit in a report on Friday, July 31st. UBS Group reiterated a “buy” rating on shares of Reddit in a research report on Friday, July 31st. Sanford C. Bernstein reissued a “market perform” rating and set a $180.00 price objective on shares of Reddit in a research note on Friday, July 31st. The Goldman Sachs Group restated a “neutral” rating and issued a $200.00 target price on shares of Reddit in a report on Friday, May 1st. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $300.00 target price on shares of Reddit in a research note on Wednesday, June 24th.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Index inclusion is the primary catalyst. The addition to the S&P 500 may prompt mandatory purchases by passive funds, while potentially expanding Reddit’s institutional shareholder base and trading liquidity. Reddit stock soars after S&P 500 inclusion announcement
• Positive Sentiment: Investor positioning turned more bullish. Trading in Reddit call options was unusually active, with 94,890 calls purchased—about 101% above typical daily volume—suggesting increased speculative interest in further gains.
• Positive Sentiment: Advertising and AI-related opportunities remain part of the longer-term story. Marketers are increasingly focused on Reddit because of its user-generated content, influence on consumer decisions, and potential relevance to large-language-model search and discovery. Brands increasingly focus on Reddit
• Neutral Sentiment: The immediate index-related boost may not persist. Historical commentary indicates that newly added S&P 500 stocks can experience an initial rally that fades after passive-fund buying is completed. Reddit also remains below its prior peak and is still down for the year, leaving the sustainability of the rally dependent on business execution. Performance of other new S&P 500 stocks
• Negative Sentiment: Google search-referral risks remain. Concerns that changes in search behavior could reduce traffic to Reddit represent an unresolved risk to audience growth, engagement, and advertising revenue. Reddit search referral concerns
• Negative Sentiment: Valuation concerns are limiting enthusiasm. At least one analyst downgraded the stock despite the index milestone, arguing that the S&P 500 inclusion alone does not eliminate execution and valuation risks. Reddit analyst downgrade

Reddit Stock Up 12.7%

NYSE RDDT opened at $178.25 on Thursday. The company has a 50-day simple moving average of $175.31 and a two-hundred day simple moving average of $159.83. Reddit has a 12-month low of $119.27 and a 12-month high of $282.95. The firm has a market cap of $34.29 billion, a price-to-earnings ratio of 41.45, a PEG ratio of 0.60 and a beta of 2.03.

Reddit (NYSE:RDDT) last announced its quarterly earnings data on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.95 by $0.30. The firm had revenue of $804.91 million for the quarter, compared to analysts’ expectations of $731.00 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%.The company’s revenue for the quarter was up 61.0% compared to the same quarter last year. During the same period last year, the firm earned $0.45 earnings per share. Equities analysts expect that Reddit will post 5.22 earnings per share for the current fiscal year.

Insider Buying and Selling at Reddit

In other Reddit news, CAO Michelle Marie Reynolds sold 808 shares of the firm’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $200.00, for a total value of $161,600.00. Following the sale, the chief accounting officer owned 15,060 shares of the company’s stock, valued at $3,012,000. This trade represents a 5.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,166 shares of the business’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $176.94, for a total transaction of $6,930,032.04. Following the completion of the transaction, the chief operating officer owned 1,050,339 shares in the company, valued at $185,846,982.66. The trade was a 3.59% 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. Insiders sold 151,141 shares of company stock valued at $25,635,785 in the last quarter. Company insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. raised its position in Reddit by 8.9% during the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock valued at $3,062,339,000 after purchasing an additional 1,083,540 shares during the last quarter. Capital World Investors purchased a new stake in Reddit in the 4th quarter worth approximately $1,293,258,000. State Street Corp grew its position in shares of Reddit by 6.0% in the 4th quarter. State Street Corp now owns 2,631,332 shares of the company’s stock worth $604,864,000 after buying an additional 149,401 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Reddit by 4.7% in the 4th quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock worth $546,789,000 after buying an additional 106,821 shares during the last quarter. Finally, Morgan Stanley increased its stake in shares of Reddit by 11.4% during the fourth quarter. Morgan Stanley now owns 2,372,443 shares of the company’s stock valued at $545,354,000 after buying an additional 242,709 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.