Bank of America Forecasts Strong Price Appreciation for Reddit (NYSE:RDDT) Stock

Key Points

• Bank of America raised its price target for Reddit (NYSE:RDDT) from $130 to $150, indicating a potential upside of 3.31% from the current price.
• Analysts have mixed ratings for Reddit, with one sell rating, nine hold ratings, and thirteen buy ratings, resulting in an average rating of "Moderate Buy."
• Reddit's recent earnings report showed a significant 61.5% year-over-year revenue increase, with earnings per share surpassing estimates at $0.13.

Reddit (NYSE:RDDT - Get Free Report) had its target price upped by Bank of America from $130.00 to $150.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Bank of America's target price indicates a potential downside of 20.19% from the company's previous close.

A number of other analysts have also recently issued reports on RDDT. Wells Fargo & Company raised their price objective on Reddit from $115.00 to $118.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 1st. Robert W. Baird increased their price target on Reddit from $120.00 to $151.00 and gave the company a "neutral" rating in a research note on Tuesday, July 8th. Loop Capital reduced their price objective on shares of Reddit from $210.00 to $200.00 and set a "buy" rating for the company in a research report on Thursday, June 12th. Seaport Res Ptn upgraded shares of Reddit from a "hold" rating to a "strong-buy" rating in a report on Monday, May 5th. Finally, JPMorgan Chase & Co. cut their target price on shares of Reddit from $185.00 to $110.00 and set a "neutral" rating for the company in a research note on Tuesday, April 8th. One analyst has rated the stock with a sell rating, nine have issued a hold rating, thirteen have given a buy rating and two have assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $158.79.

Reddit Price Performance

NYSE RDDT traded up $27.36 on Wednesday, hitting $187.95. 7,714,811 shares of the stock were exchanged, compared to its average volume of 7,763,705. The company has a market capitalization of $34.68 billion, a PE ratio of 318.57, a P/E/G ratio of 3.81 and a beta of 2.33. The business's fifty day moving average is $135.22 and its 200 day moving average is $138.51. Reddit has a 52 week low of $49.13 and a 52 week high of $230.41.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.20 by $0.25. Reddit had a net margin of 8.07% and a return on equity of 5.69%. The company had revenue of $499.63 million for the quarter, compared to analysts' expectations of $424.07 million. During the same period in the prior year, the firm earned ($0.06) EPS. Reddit's quarterly revenue was up 77.9% compared to the same quarter last year. Analysts predict that Reddit will post 1.12 EPS for the current fiscal year.

Insider Activity

In related news, CEO Steve Ladd Huffman sold 14,000 shares of the firm's stock in a transaction on Tuesday, July 15th. The stock was sold at an average price of $145.63, for a total transaction of $2,038,820.00. Following the sale, the chief executive officer owned 539,631 shares of the company's stock, valued at $78,586,462.53. This trade represents a 2.53% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Andrew Vollero sold 30,000 shares of the company's stock in a transaction dated Friday, June 13th. The stock was sold at an average price of $117.64, for a total value of $3,529,200.00. Following the completion of the transaction, the chief financial officer directly owned 333,806 shares of the company's stock, valued at approximately $39,268,937.84. The trade was a 8.25% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 506,809 shares of company stock valued at $61,884,325. 34.25% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in RDDT. Alliancebernstein L.P. boosted its position in Reddit by 103.0% during the 1st quarter. Alliancebernstein L.P. now owns 5,659,990 shares of the company's stock worth $593,733,000 after buying an additional 2,871,232 shares during the period. Whale Rock Capital Management LLC bought a new position in shares of Reddit during the fourth quarter valued at $204,054,000. Renaissance Technologies LLC lifted its holdings in shares of Reddit by 265.4% during the fourth quarter. Renaissance Technologies LLC now owns 1,650,500 shares of the company's stock worth $269,758,000 after purchasing an additional 1,198,800 shares during the period. Nordea Investment Management AB lifted its holdings in shares of Reddit by 21,703.0% during the second quarter. Nordea Investment Management AB now owns 1,060,935 shares of the company's stock worth $164,021,000 after purchasing an additional 1,056,069 shares during the period. Finally, Vanguard Group Inc. grew its stake in shares of Reddit by 11.1% in the first quarter. Vanguard Group Inc. now owns 10,198,552 shares of the company's stock worth $1,069,828,000 after purchasing an additional 1,017,162 shares during the last quarter.

About Reddit

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.