Reddit Inc. (NYSE:RDDT) Stock Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analyst sentiment remains positive: Twenty-nine analysts give Reddit a consensus “Moderate Buy” rating, with 17 buys, 10 holds and two strong buys. The average 12-month price target is $219.29.
• Reddit exceeded quarterly expectations: The company reported $1.25 in EPS versus the $0.95 consensus estimate and revenue of $804.91 million, up 61% year over year and above estimates.
• Insiders have been selling shares: Company insiders sold 306,052 shares worth approximately $49.8 million over the past 90 days, while insiders retain a 28.48% ownership stake.

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

RDDT has been the subject of a number of analyst reports. Guggenheim restated a "buy" rating on shares of Reddit in a research note on Wednesday, September 16th. DA Davidson lowered their target price on Reddit from $200.00 to $185.00 and set a "buy" rating on the stock in a report on Friday, September 18th. Zacks Research downgraded Reddit from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 25th. Weiss Ratings reiterated a "hold (c)" rating on shares of Reddit in a report on Wednesday, August 5th. Finally, Jefferies Financial Group set a $250.00 price target on Reddit in a report on Friday, July 10th.

Insiders Place Their Bets

In other news, Director Robert A. Sauerberg sold 5,128 shares of the company's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total transaction of $820,069.76. Following the completion of the transaction, the director owned 27,087 shares of the company's stock, valued at approximately $4,331,753.04. This represents a 15.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, 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 sale, the chief executive officer owned 336,432 shares of the company's stock, valued at approximately $53,348,022.24. The trade was a 4.89% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 306,052 shares of company stock worth $49,754,523 in the last ninety days. Insiders own 28.48% of the company's stock.

Hedge Funds Weigh In On Reddit

Several large investors have recently added to or reduced their stakes in RDDT. Fishman Jay A Ltd. MI raised its stake in shares of Reddit by 1.7% in the third quarter. Fishman Jay A Ltd. MI now owns 161,801 shares of the company's stock valued at $23,047,000 after purchasing an additional 2,740 shares in the last quarter. Park Avenue Securities LLC increased its position in shares of Reddit by 11.9% during the 3rd quarter. Park Avenue Securities LLC now owns 2,521 shares of the company's stock worth $359,000 after purchasing an additional 269 shares in the last quarter. Flagship Harbor Advisors LLC raised its stake in shares of Reddit by 4.8% in the third quarter. Flagship Harbor Advisors LLC now owns 2,245 shares of the company's stock valued at $320,000 after acquiring an additional 102 shares during the last quarter. Blume Capital Management Inc. grew its position in Reddit by 394.0% during the 3rd quarter. Blume Capital Management Inc. now owns 494 shares of the company's stock worth $70,000 after acquiring an additional 394 shares during the last quarter. Finally, Apollon Wealth Management LLC increased its holdings in Reddit by 65.0% during the 3rd quarter. Apollon Wealth Management LLC now owns 3,518 shares of the company's stock valued at $501,000 after purchasing an additional 1,386 shares in the last quarter.

Reddit Stock Performance

RDDT opened at $138.65 on Tuesday. The business has a 50 day moving average price of $153.79 and a 200 day moving average price of $163.36. Reddit has a twelve month low of $119.27 and a twelve month high of $263.50. The firm has a market cap of $26.68 billion, a P/E ratio of 32.24, a price-to-earnings-growth ratio of 0.67 and a beta of 2.05.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, beating 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 the consensus estimate of $731.00 million. During the same quarter last year, the company posted $0.45 earnings per share. The company's revenue for the quarter was up 61.0% compared to the same quarter last year. As a group, analysts anticipate that Reddit will post 5.27 earnings per share 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 activities. Members can submit text posts, links, images and videos, as well as comment on and vote on content. The platform includes thousands of communities, commonly known as subreddits, covering subjects such as news, entertainment, technology, sports, finance and lifestyle.

Reddit generates revenue primarily through digital advertising, offering advertisers access to audiences based on community interests and user engagement.

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