Reddit stock receives buy rating and sees fresh institutional purchases

Needham analyst Laura Martin upgraded Reddit (RDDT) to a buy, setting a $300 price target and projecting a 50% upside. She highlighted the platform’s fully human‑generated content as a competitive edge amid rising AI‑generated text. The firm noted that 19 of 29 Wall Street analysts now recommend buying the shares, which have risen about 43% over the past three months.

During the first quarter, several institutional investors added to their Reddit holdings. Warm Springs Advisors bought 10,000 shares worth roughly $1.35 million, representing about 1.1% of its portfolio. NewEdge Advisors increased its stake by 1,433% to 7,982 shares, while UBS Asset Management’s U.S. unit raised its position to 216,960 shares valued at $22.76 billion. Other firms such as Focus Partners Wealth and Geneos Wealth Management also expanded their positions. Insider sales were reported, including a 4.2% reduction by CEO Steve Huffman.

Reddit’s stock traded around $195 per share, with a market cap of $37.6 billion and a P/E of 55.74. The company posted Q1 earnings of $1.01 per share, beating expectations by $0.39.