Insider Buying: Reddit (NYSE:RDDT) Director Purchases $933,109.00 in Stock

February 13, 2026 by InsiderTrades.com

Key Points

Director Sarah Farrell purchased 6,700 shares of Reddit at an average price of $139.27 for a total of $933,109, raising her stake to 50,500 shares — a 15.3% increase and a notable insider vote of confidence.
Reddit reported a strong quarter, beating EPS estimates with $1.24 versus $0.96 and delivering $725.6M in revenue (up 69.7% YoY), while analysts collectively rate the stock a "Moderate Buy" with a consensus target near $240.93.
Shares are volatile and trading below key averages, opening at $130.95 (down ~6%), well under the 50- and 200-day moving averages near $214, and recently experienced significant drawdowns that amplify near-term risk.

Reddit Inc. (NYSE:RDDT - Get Free Report) Director Sarah Farrell purchased 6,700 shares of Reddit stock in a transaction that occurred on Wednesday, February 11th. The stock was purchased at an average price of $139.27 per share, with a total value of $933,109.00. Following the transaction, the director owned 50,500 shares in the company, valued at $7,033,135. This represents a 15.30% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.

Reddit Stock Down 6.0%

Reddit Buy Alert: Could It Really Have 40% Upside Potential?

Shares of NYSE:RDDT opened at $130.95 on Friday. The company's fifty day moving average is $214.67 and its two-hundred day moving average is $214.47. The company has a market cap of $24.82 billion, a P/E ratio of 49.98, a price-to-earnings-growth ratio of 1.03 and a beta of 2.17. Reddit Inc. has a 12-month low of $79.75 and a 12-month high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.28. The firm 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%.The business's revenue for the quarter was up 69.7% on a year-over-year basis. During the same period in the prior year, the business earned $0.36 EPS. Equities research analysts anticipate that Reddit Inc. will post 1.12 earnings per share for the current year.

Institutional Trading of Reddit

TL;DR: Why Reddit is the New Growth Stock to Beat

A number of institutional investors and hedge funds have recently modified their holdings of the company. Resona Asset Management Co. Ltd. grew its holdings in shares of Reddit by 53.2% in the 3rd quarter. Resona Asset Management Co. Ltd. now owns 30,944 shares of the company's stock valued at $7,166,000 after buying an additional 10,743 shares during the period. Teacher Retirement System of Texas raised its stake in Reddit by 880.5% during the 2nd quarter. Teacher Retirement System of Texas now owns 94,676 shares of the company's stock worth $14,255,000 after buying an additional 85,020 shares during the period. Optimize Financial Inc bought a new position in Reddit during the third quarter worth about $1,420,000. Plato Investment Management Ltd grew its stake in Reddit by 120.2% in the second quarter. Plato Investment Management Ltd now owns 2,970 shares of the company's stock valued at $446,000 after acquiring an additional 1,621 shares during the period. Finally, Wealth Enhancement Advisory Services LLC grew its stake in Reddit by 95.4% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 16,139 shares of the company's stock valued at $3,712,000 after acquiring an additional 7,881 shares during the period.

Analyst Upgrades and Downgrades

RDDT has been the topic of a number of research reports. Argus set a $300.00 price target on shares of Reddit in a research note on Friday, January 9th. Piper Sandler reiterated an "overweight" rating and set a $205.00 price target (down from $290.00) on shares of Reddit in a report on Friday, February 6th. B. Riley Financial boosted their price target on Reddit from $245.00 to $250.00 and gave the company a "buy" rating in a research note on Friday, February 6th. B. Riley Securities increased their price objective on Reddit from $245.00 to $250.00 and gave the stock a "buy" rating in a report on Friday, February 6th. Finally, Oppenheimer reduced their target price on shares of Reddit from $300.00 to $250.00 and set an "outperform" rating for the company in a research note on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $240.93.

MarketBeat Week in Review – 10/13 - 10/17

Check Out Our Latest Stock Report on RDDT

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

Positive Sentiment: New ad integration with Shirofune should make Reddit ads easier to buy and optimize alongside major channels, strengthening ad demand and advertiser ROI expectations. This supports revenue growth prospects. Read More.
Positive Sentiment: Director Sarah E. Farrell bought a large stake (43,800 shares on 2/10 and 6,700 shares on 2/11), increasing her position materially — a strong insider vote of confidence that can be viewed as bullish by the market. Read More.
Positive Sentiment: Sell‑side commentary (Needham) and coverage noting Reddit’s ad momentum and AI tools argue the company can sustain growth, which could support multiple expansion if execution continues. Read More.
Neutral Sentiment: Reddit is a hot search topic among investors — increased attention can amplify volatility (both up and down) but does not itself change fundamentals. Read More.
Negative Sentiment: CTO Christopher Slowe sold 11,464 shares (~6.5% reduction in his holding), which markets often view as a negative signal when insiders reduce exposure. Read More.
Negative Sentiment: Multiple headlines cite that Reddit shares plunged and fell ~46% over the past month amid macro pressure and competition; that magnitude of recent drawdown can trigger momentum selling and dampen near‑term sentiment. Read More.
Negative Sentiment: Coverage summarizing why shares plunged points to macro headwinds and competitive risks to ad monetization — factors that could pressure revenue growth and multiples if they persist. Read More.

Reddit Company Profile

(Get Free Report)

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.