Reddit Inc. (NYSE:RDDT) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: Reddit has a consensus “Moderate Buy” rating from 31 analysts, with an average 12-month price target of $221.10.
• Recent results exceeded expectations: Reddit reported quarterly EPS of $1.25 versus the $0.95 consensus estimate, while revenue rose 61% year over year to $804.91 million.
• Insiders have been selling shares: Executives sold 210,102 shares worth approximately $36.4 million over the past three months, including sales by CEO Steve Huffman and COO Jennifer Wong under pre-arranged trading plans.

Reddit Inc. (NYSE:RDDT - Get Free Report) has earned an average rating of "Moderate Buy" from the thirty-one analysts that are covering the firm, Marketbeat.com reports. Eleven equities research analysts have rated the stock with a hold recommendation, eighteen have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $221.10.

RDDT has been the topic of several recent analyst reports. Weiss Ratings reiterated a "hold (c)" rating on shares of Reddit in a research note on Wednesday, August 5th. Morgan Stanley lowered their price target on Reddit from $240.00 to $210.00 and set an "overweight" rating on the stock in a report on Friday, August 21st. Raymond James Financial reaffirmed a "strong-buy" rating and set a $205.00 price objective on shares of Reddit in a research report on Monday, August 17th. Zacks Research downgraded Reddit from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 25th. Finally, Sanford C. Bernstein reissued a "market perform" rating and issued a $180.00 target price on shares of Reddit in a research report on Friday, July 31st.

Insider Activity at Reddit

In related news, CEO Steve Huffman sold 18,000 shares of the firm's stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $148.02, for a total value of $2,664,360.00. Following the sale, the chief executive officer owned 336,432 shares in the company, valued at approximately $49,798,664.64. This trade represents a 5.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 75,000 shares of Reddit stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $178.55, for a total transaction of $13,391,250.00. Following the completion of the sale, the chief operating officer directly owned 1,050,339 shares of the company's stock, valued at approximately $187,538,028.45. This trade represents a 6.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 210,102 shares of company stock valued at $36,375,252. Insiders own 28.48% of the company's stock.

Hedge Funds Weigh In On Reddit

A number of institutional investors and hedge funds have recently modified their holdings of the company. NewEdge Advisors LLC boosted its position in Reddit by 143.3% in the first quarter. NewEdge Advisors LLC now owns 7,982 shares of the company's stock worth $837,000 after purchasing an additional 4,701 shares during the last quarter. Empowered Funds LLC bought a new position in shares of Reddit in the 1st quarter worth approximately $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Reddit by 106.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company's stock worth $22,759,000 after buying an additional 111,780 shares during the last quarter. Focus Partners Wealth grew its position in Reddit by 40.8% during the first quarter. Focus Partners Wealth now owns 10,224 shares of the company's stock valued at $1,073,000 after buying an additional 2,965 shares during the period. Finally, Geneos Wealth Management Inc. grew its position in Reddit by 344.6% during the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after buying an additional 286 shares during the period.

Reddit Stock Performance

NYSE:RDDT opened at $154.18 on Monday. The firm has a market cap of $29.66 billion, a P/E ratio of 35.86, a P/E/G ratio of 0.71 and a beta of 2.02. Reddit has a fifty-two week low of $119.27 and a fifty-two week high of $282.95. The firm has a 50-day simple moving average of $170.58 and a two-hundred day simple moving average of $158.93.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, beating analysts' consensus estimates of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The firm had revenue of $804.91 million for the quarter, compared to analysts' expectations of $731.00 million. During the same quarter in the prior year, the company posted $0.45 earnings per share. The business's revenue for the quarter was up 61.0% on a year-over-year basis. On average, equities research analysts predict that Reddit will post 5.27 EPS for the current year.

Reddit Company Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called "subreddits," each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.

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