DA Davidson Reaffirms “Buy” Rating for Reddit (NYSE:RDDT)

Reddit (NYSE:RDDT)‘s stock had its “buy” rating reiterated by stock analysts at DA Davidson in a report issued on Friday,Benzinga reports. They presently have a $200.00 price target on the stock. DA Davidson’s price target would suggest a potential upside of 20.10% from the company’s current price.

A number of other equities analysts have also commented on RDDT. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $285.00 price target on shares of Reddit in a research report on Tuesday, January 20th. Truist Financial lowered their price target on shares of Reddit from $275.00 to $260.00 and set a “buy” rating on the stock in a research report on Tuesday, April 7th. Robert W. Baird set a $200.00 price target on shares of Reddit in a research report on Friday, February 6th. The Goldman Sachs Group reduced their price objective on shares of Reddit from $206.00 to $180.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 14th. Finally, Guggenheim increased their price objective on shares of Reddit from $245.00 to $255.00 and gave the stock a “buy” rating in a research note on Friday, February 6th. Eighteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $228.61.

Reddit Stock Performance

NYSE:RDDT opened at $166.53 on Friday. Reddit has a 52 week low of $94.89 and a 52 week high of $282.95. The firm has a market cap of $31.81 billion, a price-to-earnings ratio of 47.58, a P/E/G ratio of 1.21 and a beta of 1.85. The firm’s 50-day simple moving average is $144.12 and its 200 day simple moving average is $184.18.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, April 30th. The company reported $1.01 EPS for the quarter, topping analysts’ consensus estimates of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 26.78%. The business had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. During the same period last year, the firm earned $0.13 earnings per share. Reddit’s revenue for the quarter was up 69.1% compared to the same quarter last year. Sell-side analysts anticipate that Reddit will post 4.02 EPS for the current year.

Insider Activity

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $158.40, for a total transaction of $2,851,200.00. Following the sale, the chief executive officer directly owned 411,195 shares in the company, valued at $65,133,288. This represents a 4.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sarah E. Farrell acquired 10,500 shares of Reddit stock in a transaction on Friday, March 13th. The shares were purchased at an average price of $132.26 per share, for a total transaction of $1,388,730.00. Following the completion of the purchase, the director directly owned 61,000 shares of the company’s stock, valued at approximately $8,067,860. This represents a 20.79% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders have bought 61,000 shares of company stock valued at $8,870,815 and have sold 280,441 shares valued at $40,873,759. Corporate insiders own 34.25% of the company’s stock.

Institutional Investors Weigh In On Reddit

Hedge funds have recently made changes to their positions in the stock. Raiffeisen Bank International AG acquired a new stake in shares of Reddit in the 3rd quarter valued at approximately $25,000. GW&K Investment Management LLC acquired a new stake in shares of Reddit in the 3rd quarter valued at approximately $30,000. Ascentis Independent Advisors acquired a new stake in shares of Reddit in the 1st quarter valued at approximately $30,000. Cornerstone Planning Group LLC boosted its stake in shares of Reddit by 13,500.0% in the 3rd quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock valued at $31,000 after purchasing an additional 135 shares in the last quarter. Finally, LOM Asset Management Ltd acquired a new stake in shares of Reddit in the 4th quarter valued at approximately $33,000.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q1 earnings and revenue beat — Reddit reported EPS of $1.01 (vs. ~$0.62 est.) and revenue of about $663M, a ~69% year‑over‑year jump; ad revenue rose sharply, underscoring improving monetization. Zacks: Reddit Q1 Earnings Beat
• Positive Sentiment: Upbeat near-term guidance — management gave Q2 revenue guidance (~$715M–$725M) above Street expectations, signaling continued ad demand momentum. Reuters: Reddit expects revenue above estimates
• Positive Sentiment: AI-driven ad products & search improvements gaining traction — exec commentary and coverage point to rising advertiser adoption of lower‑funnel, AI-enhanced ad tools and a ~30% YoY increase in weekly search usage, both supporting higher yield per user. Reuters: AI-driven ad growth fuels outlook TechCrunch: People are finally using Reddit’s search
• Positive Sentiment: Analyst support — several firms reaffirmed or raised targets (e.g., Piper Sandler raised its PT to $215; Needham reaffirmed buy with $300 PT; DA Davidson reaffirmed buy at $200), adding buy‑side validation. TickerReport / coverage on Piper Sandler
• Neutral Sentiment: Unusual options activity — traders purchased ~80,316 call options (about +88% vs. typical daily call volume), indicating speculative bullish positioning but not guaranteeing directional follow‑through.
• Neutral Sentiment: Cantor Fitzgerald raised its price target (to $180) but left a neutral rating — a mixed signal: higher target but not a bullish rating change. Benzinga: Cantor Fitzgerald update
• Negative Sentiment: Some analyst conflict and target trimming — Citizens Jmp reduced its target from $250 to $240 (still bullish stance), reflecting differing views on longer‑term upside and leaving room for skepticism about sustainability. Benzinga: Citizens Jmp update

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.