Reddit Inc. (NYSE:RDDT) Stock Has Consensus Target Price of $219.29

Key Points

• Analyst sentiment is moderately bullish: Twenty-nine firms give Reddit a consensus “Moderate Buy” rating, with 17 buys, 10 holds and 2 strong buys. The average 12-month price target is $219.29.
• Reddit exceeded quarterly expectations: The company reported adjusted EPS of $1.25 versus the $0.95 consensus estimate, while revenue rose 61% year over year to $804.91 million, above expectations.
• Insiders have been selling shares: Company insiders sold 228,744 shares worth approximately $38 million during the last quarter, including sales by CEO Steve Huffman and director Robert Sauerberg, while several institutional investors increased their holdings.

Reddit Inc. (NYSE:RDDT - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the twenty-nine research firms that are covering the stock, MarketBeat Ratings reports. Ten research analysts have rated the stock with a hold recommendation, seventeen have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $219.29.

RDDT has been the topic of several research reports. Roth Capital reiterated a "neutral" rating and set a $145.00 price target on shares of Reddit in a research report on Monday, August 3rd. Wall Street Zen cut shares of Reddit from a "buy" rating to a "hold" rating in a research report on Sunday, August 9th. Wedbush dropped their target price on shares of Reddit from $250.00 to $221.00 and set an "outperform" rating for the company in a research note on Friday, July 31st. Evercore reiterated an "outperform" rating and set a $265.00 target price on shares of Reddit in a research report on Friday, July 31st. Finally, Truist Financial increased their price target on shares of Reddit from $265.00 to $275.00 and gave the company a "buy" rating in a research note on Friday, July 31st.

Insider Buying and Selling

In other Reddit news, CEO Steve Huffman sold 18,000 shares of the company's stock in a transaction on 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 transaction, the chief executive officer owned 373,814 shares of the company's stock, valued at approximately $66,598,702.24. This represents a 4.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total value of $820,069.76. Following the completion of the transaction, the director owned 27,087 shares in the company, valued at $4,331,753.04. The trade was a 15.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 228,744 shares of company stock worth $37,976,994 in the last quarter. Insiders own 28.48% of the company's stock.

Institutional Trading of Reddit

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RDDT. Capital World Investors acquired a new position in Reddit during the 4th quarter valued at about $1,293,258,000. State Street Corp grew its position in shares of Reddit by 8.7% during the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company's stock worth $517,197,000 after buying an additional 237,523 shares during the period. Wellington Management Group LLP raised its stake in shares of Reddit by 21.8% during the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company's stock worth $271,572,000 after buying an additional 280,030 shares during the last quarter. Lord Abbett & CO. LLC raised its stake in shares of Reddit by 30.3% during the fourth quarter. Lord Abbett & CO. LLC now owns 1,263,529 shares of the company's stock worth $290,447,000 after buying an additional 293,743 shares during the last quarter. Finally, DSM Capital Partners LLC lifted its holdings in Reddit by 5.3% in the first quarter. DSM Capital Partners LLC now owns 848,206 shares of the company's stock valued at $114,211,000 after buying an additional 42,808 shares during the period.

Reddit Stock Performance

Shares of RDDT opened at $149.48 on Friday. The company has a market cap of $28.76 billion, a price-to-earnings ratio of 34.76, a PEG ratio of 0.66 and a beta of 2.05. The stock has a fifty day moving average price of $156.47 and a two-hundred day moving average price of $160.24. Reddit has a 52-week low of $119.27 and a 52-week high of $263.50.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping the consensus estimate of $0.95 by $0.30. Reddit had a return on equity of 29.02% and a net margin of 31.35%.The company 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 business earned $0.45 earnings per share. The business's revenue for the quarter was up 61.0% on a year-over-year basis. As a group, research analysts predict that Reddit will post 5.27 EPS for the current fiscal year.

Reddit Company Profile

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and experiences. Registered users can submit posts, images, videos and links, while other users can comment, vote on content and engage in discussions. The platform comprises thousands of independently moderated communities, commonly known as subreddits.

Reddit generates revenue primarily through digital advertising and other commercial offerings for businesses.

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