Reddit (NYSE:RDDT) Upgraded by Evercore ISI to “Strong-Buy” Rating

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

Other analysts also recently issued reports about the stock. Zacks Research downgraded shares of Reddit from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 26th. Weiss Ratings reissued a “hold (c-)” rating on shares of Reddit in a research note on Monday, December 29th. Needham & Company LLC restated a “buy” rating and set a $300.00 price target on shares of Reddit in a report on Monday, December 29th. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $236.00 target price on shares of Reddit in a research report on Tuesday, October 14th. Finally, UBS Group set a $265.00 price objective on Reddit in a research report on Tuesday. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $238.57.

Reddit Stock Performance

NYSE RDDT opened at $253.67 on Monday. Reddit has a one year low of $79.75 and a one year high of $282.95. The firm has a market capitalization of $48.07 billion, a PE ratio of 145.54, a price-to-earnings-growth ratio of 1.64 and a beta of 2.17. The company has a 50-day simple moving average of $220.63 and a 200-day simple moving average of $209.31.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, October 30th. The company reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.30. Reddit had a return on equity of 14.94% and a net margin of 18.33%.The company had revenue of $584.91 million during the quarter, compared to analysts’ expectations of $546.65 million. During the same quarter in the prior year, the business posted $0.16 earnings per share. The company’s revenue for the quarter was up 67.9% compared to the same quarter last year. Equities analysts forecast that Reddit will post 1.12 earnings per share for the current year.

Insider Activity at Reddit

In other Reddit news, CFO Andrew Vollero sold 3,674 shares of the firm’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $261.21, for a total value of $959,685.54. Following the sale, the chief financial officer owned 251,644 shares of the company’s stock, valued at $65,731,929.24. This trade represents a 1.44% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Jennifer L. Wong sold 39,167 shares of the firm’s stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $234.37, for a total transaction of $9,179,569.79. Following the completion of the sale, the chief operating officer owned 1,184,528 shares of the company’s stock, valued at $277,617,827.36. This trade represents a 3.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 505,470 shares of company stock worth $109,018,861 in the last three months. 34.25% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in RDDT. Pallas Capital Advisors LLC boosted its holdings in Reddit by 5.5% in the fourth quarter. Pallas Capital Advisors LLC now owns 2,481 shares of the company’s stock worth $570,000 after purchasing an additional 129 shares during the last quarter. Accurate Wealth Management LLC boosted its stake in Reddit by 23.2% during the fourth quarter. Accurate Wealth Management LLC now owns 6,032 shares of the company’s stock valued at $1,475,000 after buying an additional 1,135 shares during the last quarter. Q Fund Management Hong Kong Ltd purchased a new position in shares of Reddit in the 4th quarter worth $621,000. Stephens Consulting LLC purchased a new stake in Reddit during the fourth quarter valued at approximately $230,000. Finally, CoreCap Advisors LLC boosted its stake in Reddit by 61.1% during the fourth quarter. CoreCap Advisors LLC now owns 1,835 shares of the company’s stock worth $422,000 after buying an additional 696 shares during the period.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Evercore initiated coverage of RDDT with an Outperform recommendation, citing upside from additional monetization opportunities — this helped spark buying interest. Read More.
• Positive Sentiment: Evercore and other outlets highlighted Reddit’s scope for further monetization (AI ad tools, new products), reinforcing a growth story that supports higher revenue/ARPU expectations. Read More.
• Positive Sentiment: Zacks emphasized Reddit’s expanding product lineup and AI-driven advertising capabilities as drivers of engagement and revenue growth — a constructive longer-term thesis for investors. Read More.
• Positive Sentiment: Additional analyst coverage initiations (which increase visibility/liquidity) were reported and may support demand if follow-through is positive. Read More.
• Neutral Sentiment: Market focus on Reddit’s earnings catalyst (Jan. 13) increased positioning and volatility — a binary event that could swing the stock materially depending on results vs. expectations. Read More.
• Neutral Sentiment: Analyst consensus remains broadly constructive (Moderate Buy, average targets near the $230–$240 area), providing baseline support but limiting immediate upside if results only meet estimates.
• Negative Sentiment: CTO Christopher Slowe sold 14,000 shares (~$3.55M at ~$254), cutting his stake materially — large insider sales from senior tech leadership often weigh on sentiment. Read More.
• Negative Sentiment: CFO Andrew Vollero disclosed multiple recent sales (including several thousand shares on Jan. 13 and Jan. 9), adding to the cluster of insider selling and amplifying short-term downside headline risk. Read More.
• Negative Sentiment: Coverage noted the stock pulled back after the wave of insider selling, which explains recent downward pressure and increased volatility for traders. Read More.

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.