Reddit (NYSE:RDDT) Stock Gets Price Target Reduction from Guggenheim

Key Points

• Guggenheim lowered its Reddit price target to $140 from $170 but maintained a Buy rating; the new target implies 38.46% upside from the stock’s current price.
• Analyst sentiment remains broadly positive: MarketBeat reports a Moderate Buy consensus and an average price target of $180, with 16 analysts rating the stock Buy or Strong Buy and 15 rating it Hold.
• Reddit beat quarterly earnings and revenue estimates, reporting $1.40 EPS and $894.96 million in revenue; revenue rose 53% year over year.

Reddit (NYSE:RDDT - Get Free Report) had its price objective cut by Guggenheim from $170.00 to $140.00 in a research report issued on Tuesday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. Guggenheim's price target indicates a potential upside of 38.46% from the stock's current price.

Other equities analysts also recently issued research reports about the stock. Morgan Stanley cut their price target on shares of Reddit from $240.00 to $210.00 and set an "overweight" rating on the stock in a report on Friday, August 21st. Roth Capital reaffirmed a "neutral" rating and issued a $145.00 price objective on shares of Reddit in a report on Monday, August 3rd. Loop Capital downgraded shares of Reddit from a "buy" rating to a "hold" rating and set a $100.00 price objective on the stock. in a report on Monday, November 2nd. B. Riley Financial cut their price objective on shares of Reddit from $270.00 to $190.00 and set a "buy" rating on the stock in a research note on Friday, October 30th. Finally, Bank of America reissued a "neutral" rating and set a $135.00 target price (down from $190.00) on shares of Reddit in a report on Friday, October 30th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and fifteen have given a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $180.00.

Reddit Stock Up 6.3%

RDDT stock opened at $101.11 on Tuesday. The firm has a 50 day moving average of $143.34 and a 200 day moving average of $156.12. The stock has a market capitalization of $19.45 billion, a PE ratio of 20.79, a price-to-earnings-growth ratio of 0.41 and a beta of 2.28. Reddit has a 52 week low of $89.28 and a 52 week 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 return on equity of 30.57% and a net margin of 32.10%. The business had revenue of $894.96 million for the quarter, compared to the consensus estimate of $874.91 million. During the same quarter in the previous year, the business earned $0.80 EPS. The company's quarterly revenue was up 53.0% compared to the same quarter last year. On average, equities research analysts expect that Reddit will post 5.42 earnings per share for the current year.

Insider Activity

In other Reddit news, COO Jennifer Wong sold 75,000 shares of the company's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $178.55, for a total value of $13,391,250.00. Following the completion of the transaction, the chief operating officer owned 1,050,339 shares in the company, valued at approximately $187,538,028.45. This represents a 6.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Huffman sold 18,000 shares of the stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $178.16, for a total transaction of $3,206,880.00. Following the sale, 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 ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 291,052 shares of company stock worth $47,166,483 over the last three months. Corporate insiders own 28.48% of the company's stock.

Institutional Trading of Reddit

Institutional investors and hedge funds have recently made changes to their positions in the business. Wellington Management Group LLP increased its stake in Reddit by 21.8% in the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company's stock valued at $271,572,000 after purchasing an additional 280,030 shares during the last quarter. State Street Corp raised its holdings in Reddit by 8.7% during the second quarter. State Street Corp now owns 2,979,587 shares of the company's stock worth $517,197,000 after purchasing an additional 237,523 shares in the last quarter. Moore Capital Management LP lifted its position in shares of Reddit by 611.4% during the 2nd quarter. Moore Capital Management LP now owns 12,577 shares of the company's stock worth $2,183,000 after buying an additional 10,809 shares during the last quarter. Light Street Capital Management LLC purchased a new stake in shares of Reddit during the 2nd quarter worth approximately $31,678,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab lifted its position in shares of Reddit by 102.3% during the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 19,120 shares of the company's stock worth $3,319,000 after buying an additional 9,670 shares during 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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