Reddit Inc. (NYSE:RDDT - Get Free Report) Director Sarah Farrell purchased 10,500 shares of the stock in a transaction dated Friday, March 13th. The shares were bought at an average cost of $132.26 per share, for a total transaction of $1,388,730.00. Following the completion of the purchase, the director owned 61,000 shares in the company, valued at approximately $8,067,860. This trade represents a 20.79% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink.
Reddit Stock Up 2.9%
Shares of NYSE RDDT opened at $144.00 on Wednesday. The stock has a market capitalization of $27.51 billion, a price-to-earnings ratio of 54.96, a price-to-earnings-growth ratio of 1.02 and a beta of 2.40. Reddit Inc. has a 52 week low of $79.75 and a 52 week high of $282.95. The firm has a 50-day moving average price of $173.34 and a 200 day moving average price of $203.70.
Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.28. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The company had revenue of $725.61 million for the quarter, compared to analyst estimates of $665.80 million. During the same period in the prior year, the business posted $0.36 earnings per share. The firm's revenue for the quarter was up 69.7% compared to the same quarter last year. Equities research analysts expect that Reddit Inc. will post 1.12 EPS for the current fiscal year.
Key Reddit News
Here are the key news stories impacting Reddit this week:
- Positive Sentiment: Strong Q4 fundamentals: recent coverage highlights a huge quarter — revenue up ~70% YoY and meaningful ARPU/monetization gains — which supports the case for continued ad growth and the stock’s re-rating. Reddit Stock: Why It May Finally Be Time to Buy the Dip
- Positive Sentiment: Director Sarah E. Farrell bought 10,500 shares (~$1.39M at ~$132.26), increasing her stake by ~20.8% — a direct insider buy that investors often view as a confidence signal. SEC Filing - Farrell Purchase
- Positive Sentiment: Bullish analyst/coverage momentum: the stock has an average “Moderate Buy” and several bullish pieces argue Reddit is underpriced given rapid ad monetization and AI-driven engagement. Average Recommendation Moderate Buy Is Reddit a Good Stock Now?
- Positive Sentiment: Ad product expansion: a PulsePoint partnership spotlights growth in higher-value healthcare advertising, reinforcing TAM and monetization upside. Reddit’s PulsePoint Tie Up Highlights Healthcare Ads
- Neutral Sentiment: Buyback ambition noted in reporting — potentially supportive for shares but details/timing remain unclear, so impact depends on execution. Surging Q4 Results, Buyback Ambition
- Neutral Sentiment: Competitive/regulatory context: comparisons to Meta highlight Reddit’s faster ad growth and product momentum, but scale and regulatory environment differ — this frames upside potential but with caveats. RDDT vs META: Which Has an Edge?
- Negative Sentiment: CEO Steve Huffman sold 18,000 shares (~$2.39M at ~$132.86). Insider sales can prompt short-term caution even when management retains a large stake. SEC Filing - Huffman Sale
- Negative Sentiment: Regulatory risk flagged alongside strong results — while earnings and monetization look good, potential regulatory scrutiny in ad/content areas is a recurring downside risk for large social platforms. Regulatory Risk Discussed
Hedge Funds Weigh In On Reddit
Institutional investors have recently made changes to their positions in the stock. Resona Asset Management Co. Ltd. raised its stake 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 acquiring an additional 10,743 shares during the period. Vanguard Group Inc. boosted its position in Reddit by 12.9% during the 3rd quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company's stock worth $2,814,734,000 after purchasing an additional 1,401,293 shares during the period. Optimize Financial Inc acquired a new stake in Reddit in the 3rd quarter valued at $1,420,000. WT Asset Management Ltd acquired a new stake in Reddit in the 3rd quarter valued at $92,973,000. Finally, Wealth Enhancement Advisory Services LLC raised its position 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 purchasing an additional 7,881 shares during the period.
Analyst Ratings Changes
RDDT has been the subject of several research analyst reports. B. Riley Financial raised their price objective on Reddit from $245.00 to $250.00 and gave the company a "buy" rating in a research note on Friday, February 6th. Oppenheimer dropped their price target on Reddit from $300.00 to $250.00 and set an "outperform" rating for the company in a research report on Friday, February 6th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Reddit in a research note on Monday, December 29th. JPMorgan Chase & Co. lowered their price objective on shares of Reddit from $227.00 to $200.00 and set a "neutral" rating on the stock in a research note on Friday, February 6th. Finally, Wall Street Zen upgraded shares of Reddit from a "hold" rating to a "buy" rating in a report on Sunday. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eleven have assigned a Hold rating to the company's stock. According to MarketBeat, Reddit presently has a consensus rating of "Moderate Buy" and a consensus target price of $242.19.
Check Out Our Latest Stock Analysis on Reddit
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.
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