Reddit (NYSE:RDDT) Stock Rating Upgraded by Evercore ISI

Reddit (NYSE:RDDT) was upgraded by research analysts at Evercore ISI to a “strong-buy” rating in a research note issued to investors on Monday,Zacks.com reports.

Several other research analysts also recently issued reports on the stock. Zacks Research downgraded shares of Reddit from a “strong-buy” rating to a “hold” rating in a report on Friday, December 26th. Citigroup boosted their price target on Reddit from $250.00 to $265.00 and gave the company a “buy” rating in a research note on Monday, November 3rd. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Reddit in a report on Monday, December 29th. Truist Financial set a $270.00 price objective on Reddit in a research report on Friday, October 31st. Finally, B. Riley restated a “buy” rating and set a $245.00 price objective (up from $235.00) on shares of Reddit in a research report on Friday, October 31st. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Reddit presently has a consensus rating of “Moderate Buy” and a consensus price target of $238.57.

Reddit Stock Down 2.0%

Shares of RDDT stock traded down $5.09 during trading hours on Monday, reaching $253.84. 2,370,251 shares of the company’s stock were exchanged, compared to its average volume of 3,550,129. Reddit has a fifty-two week low of $79.75 and a fifty-two week high of $282.95. The stock has a market capitalization of $48.10 billion, a P/E ratio of 146.29, a P/E/G ratio of 1.64 and a beta of 2.17. The business has a fifty day moving average price of $220.63 and a 200-day moving average price of $209.31.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, October 30th. The company reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.30. The business had revenue of $584.91 million for the quarter, compared to analyst estimates of $546.65 million. Reddit had a net margin of 18.33% and a return on equity of 14.94%. Reddit’s revenue was up 67.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.16 earnings per share. As a group, research analysts expect that Reddit will post 1.12 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, COO Jennifer L. Wong sold 39,167 shares of the business’s stock in a transaction on Friday, December 19th. The shares were sold at an average price of $234.37, for a total value of $9,179,569.79. Following the sale, the chief operating officer owned 1,184,528 shares in the company, valued at approximately $277,617,827.36. The trade was a 3.20% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Christopher Brian Slowe sold 14,000 shares of the company’s stock in a transaction dated Thursday, January 8th. The stock was sold at an average price of $253.88, for a total transaction of $3,554,320.00. Following the completion of the sale, the chief technology officer directly owned 169,694 shares in the company, valued at approximately $43,081,912.72. The trade was a 7.62% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 505,470 shares of company stock worth $109,018,861 over the last quarter. Corporate insiders own 34.25% of the company’s stock.

Institutional Trading of Reddit

Hedge funds and other institutional investors have recently made changes to their positions in the business. Nepsis Inc. grew its position in shares of Reddit by 13.8% during the 4th quarter. Nepsis Inc. now owns 54,661 shares of the company’s stock worth $12,565,000 after buying an additional 6,628 shares during the period. Pallas Capital Advisors LLC grew its holdings in Reddit by 5.5% during the 4th quarter. Pallas Capital Advisors LLC now owns 2,481 shares of the company’s stock worth $570,000 after acquiring an additional 129 shares during the period. Accurate Wealth Management LLC raised its position in shares of Reddit by 23.2% during the 4th quarter. Accurate Wealth Management LLC now owns 6,032 shares of the company’s stock valued at $1,475,000 after acquiring an additional 1,135 shares during the last quarter. Q Fund Management Hong Kong Ltd bought a new stake in shares of Reddit during the 4th quarter valued at $621,000. Finally, Stephens Consulting LLC acquired a new position in shares of Reddit in the 4th quarter valued at $230,000.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Evercore ISI initiated coverage with a bullish/strong-buy outlook, highlighting additional monetization runway that supports upside for ad revenue and pricing power. Evercore Coverage
• Positive Sentiment: Zacks and other outlets emphasize Reddit’s expanding product lineup and AI-driven ad tools as durable revenue drivers, supporting the longer-term monetization thesis. Zacks Article
• Neutral Sentiment: Market focus on the recent earnings catalyst (Jan. 13) has elevated short-term positioning and volatility — results and guidance will determine the next directional move. Earnings Preview
• Negative Sentiment: CTO Christopher Slowe sold 14,000 shares (~$3.55M) in early January, a material reduction in his stake that markets interpret negatively for insider conviction. CTO Sale
• Negative Sentiment: CFO Andrew Vollero disclosed multiple recent sales (including filings for Jan. 9 and Jan. 13), aggregating to several million dollars—this cluster of senior-exec selling is amplifying headline risk and downward pressure. CFO SEC Filing
• Negative Sentiment: News outlets note the stock already moved lower (~6% intraday in some reports) following the wave of insider sales, indicating the disclosures are the dominant near-term driver of today’s decline. Market Reaction

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.