What is B. Riley’s Forecast for Reddit FY2029 Earnings?

Key Takeaways:

• B. Riley forecasts Reddit’s FY2029 earnings per share at $6.16.
• Multiple analysts issue ‘Buy’ ratings and increase price targets.
• Reddit’s stock opened at $174.81, showing significant growth.
• Insiders sold over $31 million in company stock in recent months.
• Hedge funds significantly increased their holdings in Reddit.

Analysts Project Positive Earnings for Reddit

Investment analysts at B. Riley have issued their FY2029 earnings per share (EPS) estimates for Reddit, Inc. (NYSE: RDDT). In a research report released on Tuesday, January 14th, analyst N. Khan anticipates that the company will earn $6.16 per share for the year. B. Riley has maintained a “Buy” rating and set a $187.00 price target on the stock.

Upgraded Ratings and Increased Price Targets

Reddit is receiving a wave of positive attention from analysts:

• Piper Sandler boosted their price target from $150.00 to $197.00 , assigning an “overweight” rating .
• Needham & Company LLC increased their price target from $120.00 to $190.00 with a “buy” rating .
• Loop Capital raised their price target from $120.00 to $180.00 , also giving a “buy” rating .
• Wells Fargo & Company initiated coverage with an “overweight” rating and a $206.00 price objective .
• The Goldman Sachs Group upped their target price from $105.00 to $176.00 , assigning a “neutral” rating .

The consensus reflects one sell rating, five hold ratings, fourteen buy ratings, and one strong buy rating. According to MarketBeat.com, Reddit holds a consensus rating of “Moderate Buy” with an average price target of $148.25 .

Stock Performance Shows Upward Trend

On Thursday, Reddit’s stock opened at $174.81 , marking a 2.4% increase . The firm’s 50-day simple moving average is $156.38 , and the 200-day simple moving average stands at $99.15 . Over the past twelve months, Reddit’s stock has fluctuated between a low of $37.35 and a high of $187.69 .

In its last quarterly earnings report on October 29th, Reddit reported earnings of $0.16 per share , surpassing the consensus estimate of ($0.07) by $0.23 . The company generated $348.40 million in revenue, exceeding expectations of $313.61 million . Despite these gains, Reddit had a negative net margin of 47.83% and a negative return on equity of 40.54% . The revenue represented a 67.9% increase compared to the same quarter last year.

Insider Trading Activity Highlights

Recent months have seen significant insider selling:

• Benjamin Seong Lee , an insider, sold 18,519 shares on November 22nd at an average price of $146.06 , totaling $2,704,885.14 . This sale marked an 11.80% decrease in his position.
• Mary Porter Gale , a Director, sold 5,000 shares on November 1st at an average price of $114.40 , amounting to $572,000.00 , reflecting a 9.72% decrease in her holdings.

Over the last ninety days, insiders have sold a total of 217,023 shares worth $31,699,295 .

Hedge Funds Increase Stakes in Reddit

Institutional investors have significantly modified their holdings:

• FMR LLC increased its holdings by 302.8% in the third quarter, now owning 12,157,591 shares valued at $801,428,000 after acquiring an additional 9,139,196 shares .
• VY Capital Management Co. Ltd. acquired a new position worth approximately $474,403,000 .
• Point72 Asset Management L.P. grew its position by 3,172.0% , now holding 2,296,068 shares valued at $151,357,000 .
• Holocene Advisors LP increased its stake by 177.6% , owning 3,005,977 shares worth $198,154,000 .
• Lord Abbett & Co. LLC boosted holdings by 1,519.4% , now with 1,650,362 shares valued at $108,792,000 .

These moves indicate strong institutional confidence in Reddit’s future performance.

Company Overview

Reddit, Inc. operates a website that organizes digital communities based on specific interests. Users engage by sharing experiences, submitting links, uploading images and videos, and interacting through replies. Founded in 2005 , the company is headquartered in San Francisco, California .

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