Reddit Inc. (NYSE:RDDT) Given Consensus Rating of “Moderate Buy” by Brokerages

Reddit Inc. (NYSE:RDDT) has earned an average recommendation of “Moderate Buy” from the thirty-one brokerages that are currently covering the firm, Marketbeat Ratings reports. Eleven analysts have rated the stock with a hold recommendation, eighteen have assigned a buy recommendation and two have given a strong buy recommendation to the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $221.10.

Several research firms recently commented on RDDT. JPMorgan Chase & Co. lowered their target price on Reddit from $200.00 to $185.00 and set a “neutral” rating on the stock in a research report on Friday, July 31st. DA Davidson reaffirmed a “buy” rating and set a $200.00 target price on shares of Reddit in a research note on Thursday, July 23rd. Telsey Advisory Group set a $240.00 price target on Reddit in a research report on Friday, July 31st. UBS Group reissued a “buy” rating on shares of Reddit in a research note on Friday, July 31st. Finally, Sanford C. Bernstein reissued a “market perform” rating and set a $180.00 price target on shares of Reddit in a report on Friday, July 31st.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: August user growth reached a 2026 high. Piper Sandler data indicated Reddit’s average users increased 8% month over month in August, the company’s strongest monthly growth rate this year. The data helped reverse a four-session decline and drove renewed investor interest. Reddit stock rises 6% as August user growth hits 2026 high
• Positive Sentiment: International momentum was particularly strong. Reports said international users surged 29% in August, while total user growth accelerated 8% month over month. Expanding overseas engagement could provide Reddit with additional long-term advertising inventory and monetization opportunities. Reddit’s August user growth jumps 8% month-on-month
• Positive Sentiment: Analysts viewed the audience and advertising trends as improving. Piper Sandler described the user-growth acceleration as a powerful signal, while other coverage linked the larger global audience with improving ad trends. This supports the bullish case that Reddit can continue expanding revenue beyond its recent 61% year-over-year growth. Reddit gains as August user growth accelerates
• Neutral Sentiment: Investor attention remains unusually high. Reddit was among the stocks most heavily searched by Zacks users, which can increase trading activity and visibility but does not by itself establish a fundamental change in earnings prospects. Investors heavily search Reddit
• Negative Sentiment: Concerns are emerging over the sustainability of ad growth. The latest analysis questions what Reddit is effectively paying to generate its advertising expansion, raising the risk that user acquisition, incentives, content investment, or other costs could limit profit conversion. With RDDT trading at a growth-oriented valuation, investors may demand evidence that audience gains translate into durable, profitable revenue. What Are You Really Paying For Reddit’s Ad Growth?

Insider Activity at Reddit

In other Reddit news, Director Robert Sauerberg sold 5,128 shares of the firm’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total transaction of $820,069.76. Following the transaction, the director owned 27,087 shares of the company’s stock, valued at approximately $4,331,753.04. This trade represents a 15.92% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Steve Huffman sold 18,000 shares of the firm’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $178.16, for a total transaction of $3,206,880.00. Following the transaction, the chief executive officer directly owned 373,814 shares in the company, valued at approximately $66,598,702.24. The trade was a 4.59% 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. Over the last quarter, insiders have sold 192,102 shares of company stock worth $33,166,572. 28.48% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Reddit

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RDDT. Truist Financial Corp grew its holdings in Reddit by 67.7% during the fourth quarter. Truist Financial Corp now owns 15,659 shares of the company’s stock worth $3,600,000 after acquiring an additional 6,321 shares during the period. Swiss Life Asset Management Ltd lifted its holdings in Reddit by 63.2% in the 4th quarter. Swiss Life Asset Management Ltd now owns 32,003 shares of the company’s stock valued at $7,357,000 after acquiring an additional 12,398 shares during the last quarter. Wellington Management Group LLP lifted its holdings in Reddit by 21.8% in the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock valued at $271,572,000 after acquiring an additional 280,030 shares during the last quarter. Handelsbanken Fonder AB boosted its position in shares of Reddit by 22.9% during the 4th quarter. Handelsbanken Fonder AB now owns 37,000 shares of the company’s stock valued at $8,505,000 after purchasing an additional 6,900 shares in the last quarter. Finally, Berkshire Capital Holdings Inc. boosted its position in shares of Reddit by 326,400.0% during the 4th quarter. Berkshire Capital Holdings Inc. now owns 32,650 shares of the company’s stock valued at $7,505,000 after purchasing an additional 32,640 shares in the last quarter.

Reddit Trading Up 0.1%

NYSE RDDT opened at $157.88 on Monday. Reddit has a 52 week low of $119.27 and a 52 week high of $282.95. The stock has a market cap of $30.38 billion, a price-to-earnings ratio of 36.72, a price-to-earnings-growth ratio of 0.73 and a beta of 2.02. The company has a 50-day moving average price of $167.16 and a two-hundred day moving average price of $159.20.

Reddit (NYSE:RDDT) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, beating the consensus estimate of $0.95 by $0.30. The company had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. Reddit had a net margin of 31.35% and a return on equity of 29.02%. Reddit’s revenue was up 61.0% compared to the same quarter last year. During the same quarter last year, the business earned $0.45 earnings per share. As a group, equities research analysts expect that Reddit will post 5.27 earnings per share for the current fiscal year.

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and discussions. Users can submit posts, links, images and videos, while community members can comment, vote and interact through publicly accessible forums known as subreddits.

The company generates revenue primarily through digital advertising and also offers premium memberships and other paid products. Reddit additionally provides data licensing and developer-related services that support the use of its platform content and technology.

Founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz, Reddit serves users worldwide across a broad range of communities.