Reddit (NYSE:RDDT) Price Target Cut to $150.00 by Analysts at Argus

Key Points

• Argus cut Reddit’s price target from $225 to $150 but maintained a Buy rating; the new target implies about 42% upside from the stock’s current price.
• Analysts’ overall view remains positive: Reddit has a Moderate Buy consensus rating and an average price target of $175.45.
• Reddit beat quarterly earnings and revenue estimates, reporting EPS of $1.40 and revenue of about $895 million, up 53% year over year.

Reddit (NYSE:RDDT - Get Free Report) had its price objective decreased by stock analysts at Argus from $225.00 to $150.00 in a note issued to investors on Thursday, Benzinga reports. The firm presently has a "buy" rating on the stock. Argus's price objective would suggest a potential upside of 42.12% from the company's current price.

A number of other research analysts have also recently weighed in on the stock. President Capital dropped their target price on shares of Reddit from $207.00 to $199.00 and set a "buy" rating on the stock in a research note on Thursday, September 17th. DA Davidson decreased their price target on shares of Reddit from $185.00 to $125.00 and set a "buy" rating for the company in a research note on Monday, November 2nd. Truist Financial decreased their price target on shares of Reddit from $275.00 to $210.00 and set a "buy" rating for the company in a research note on Friday, October 30th. Robert W. Baird set a $185.00 price target on shares of Reddit in a report on Friday, July 31st. Finally, Jefferies Financial Group dropped their price objective on Reddit from $200.00 to $155.00 in a research note on Friday, October 30th. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and fifteen have given a Hold rating to the stock. Based on data from MarketBeat, Reddit presently has an average rating of "Moderate Buy" and an average price target of $175.45.

Reddit Price Performance

NYSE RDDT opened at $105.55 on Thursday. The business's fifty day moving average is $141.58 and its 200-day moving average is $154.97. The stock has a market capitalization of $20.38 billion, a price-to-earnings ratio of 21.54, a PEG ratio of 0.40 and a beta of 2.28. Reddit has a one year low of $89.28 and a one year high of $263.50.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.07. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The company had revenue of $894.96 million during the quarter, compared to analyst estimates of $874.91 million. During the same quarter in the prior year, the business earned $0.80 earnings per share. The firm's revenue for the quarter was up 53.0% on a year-over-year basis. Research analysts expect that Reddit will post 5.42 EPS for the current fiscal year.

Insider Transactions at Reddit

In other Reddit news, CEO Steve Huffman sold 17,308 shares of the stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $158.57, for a total transaction of $2,744,529.56. Following the completion of the transaction, the chief executive officer owned 336,432 shares in the company, valued at $53,348,022.24. This trade represents a 4.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mary Gale sold 4,000 shares of the stock in a transaction dated Friday, November 6th. The stock was sold at an average price of $96.00, for a total transaction of $384,000.00. Following the transaction, the director owned 11,181 shares of the company's stock, valued at $1,073,376. This represents a 26.35% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 295,052 shares of company stock valued at $47,550,483. 28.48% of the stock is currently owned by insiders.

Institutional Trading of Reddit

Hedge funds and other institutional investors have recently modified their holdings of the business. State Street Corp grew its stake in Reddit by 212.7% in the 3rd quarter. State Street Corp now owns 9,317,592 shares of the company's stock valued at $1,327,198,000 after buying an additional 6,338,005 shares in the last quarter. Wellington Management Group LLP boosted its holdings in shares of Reddit by 21.8% in the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company's stock worth $271,572,000 after acquiring an additional 280,030 shares during the period. Robeco Institutional Asset Management B.V. grew its position in shares of Reddit by 74.6% in the third quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company's stock valued at $115,243,000 after purchasing an additional 345,735 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of Reddit by 8.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 481,893 shares of the company's stock valued at $83,647,000 after purchasing an additional 39,540 shares in the last quarter. Finally, Bessemer Group Inc. grew its position in shares of Reddit by 2.4% in the first quarter. Bessemer Group Inc. now owns 469,907 shares of the company's stock valued at $63,273,000 after purchasing an additional 10,996 shares in the last quarter.

About Reddit

Reddit, Inc. operates Reddit, an online platform where users share posts, discuss topics and participate in communities known as subreddits. Members can submit text, images, videos and links, comment on posts, and vote on content, helping shape what appears in each community. The company generates revenue primarily through advertising and also offers paid subscriptions and other products. Reddit serves users and advertisers around the world through its website and mobile applications. Reddit was founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz.

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