Reddit Inc. (NYSE:RDDT) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• "Moderate Buy" consensus from 30 analysts (18 buys, 12 holds) with an average 12‑month price target of $228.61.
• Reddit beat estimates last quarter, reporting $1.01 EPS vs. $0.62 expected and $663.4M revenue vs. $607.7M, a 69.1% year‑over‑year revenue increase with a 28.6% net margin and 26.8% ROE.
• Insiders have been active—CEO Steve Huffman sold 18,000 shares while a director bought 43,800; insiders net bought 61,000 and sold 280,441 shares in the last 90 days and own 34.25% of the stock, which trades around $169 with a $32.3B market cap and a P/E of 48.35.

Shares of Reddit Inc. (NYSE:RDDT - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the thirty brokerages that are currently covering the company, MarketBeat Ratings reports. Twelve research analysts have rated the stock with a hold recommendation and eighteen have given a buy recommendation to the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $228.6071.

RDDT has been the subject of several research reports. DA Davidson reiterated a "buy" rating and set a $200.00 price target on shares of Reddit in a research note on Friday. Jefferies Financial Group cut their target price on Reddit from $285.00 to $250.00 and set a "buy" rating for the company in a research note on Tuesday, March 10th. Guggenheim raised their target price on Reddit from $245.00 to $255.00 and gave the stock a "buy" rating in a research note on Friday, February 6th. Oppenheimer restated an "outperform" rating and issued a $225.00 target price on shares of Reddit in a research note on Friday. Finally, Citizens Jmp cut their target price on Reddit from $250.00 to $240.00 and set a "market outperform" rating for the company in a research note on Friday.

Reddit Stock Performance

RDDT stock opened at $169.24 on Tuesday. The company has a market capitalization of $32.33 billion, a price-to-earnings ratio of 48.35, a PEG ratio of 1.21 and a beta of 1.85. Reddit has a fifty-two week low of $94.89 and a fifty-two week high of $282.95. The stock has a fifty day moving average of $144.12 and a 200-day moving average of $184.09.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.39. The company had revenue of $663.41 million during the quarter, compared to the consensus estimate of $607.74 million. Reddit had a return on equity of 26.78% and a net margin of 28.60%.The firm's quarterly revenue was up 69.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.13 EPS. Equities analysts predict that Reddit will post 4.02 EPS for the current year.

Insider Buying and Selling

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the firm's stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $145.12, for a total value of $2,612,160.00. Following the completion of the transaction, the chief executive officer owned 411,195 shares in the company, valued at $59,672,618.40. This trade represents a 4.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Sarah E. Farrell bought 43,800 shares of the business's stock in a transaction on Tuesday, February 10th. The stock was bought at an average price of $149.52 per share, with a total value of $6,548,976.00. Following the purchase, the director owned 43,800 shares in the company, valued at $6,548,976. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have acquired 61,000 shares of company stock worth $8,870,815 and have sold 280,441 shares worth $40,873,759. 34.25% of the stock is owned by company insiders.

Institutional Trading of Reddit

A number of large investors have recently modified their holdings of the business. Huntington National Bank boosted its position in shares of Reddit by 25.6% during the 3rd quarter. Huntington National Bank now owns 270 shares of the company's stock valued at $62,000 after acquiring an additional 55 shares during the last quarter. Institute for Wealth Management LLC. boosted its position in shares of Reddit by 6.1% during the 4th quarter. Institute for Wealth Management LLC. now owns 1,071 shares of the company's stock valued at $246,000 after acquiring an additional 62 shares during the last quarter. Roxbury Financial LLC boosted its position in shares of Reddit by 7.4% during the 4th quarter. Roxbury Financial LLC now owns 929 shares of the company's stock valued at $214,000 after acquiring an additional 64 shares during the last quarter. Florida Financial Advisors LLC boosted its position in shares of Reddit by 6.7% during the 4th quarter. Florida Financial Advisors LLC now owns 1,087 shares of the company's stock valued at $250,000 after acquiring an additional 68 shares during the last quarter. Finally, Diversified Trust Co boosted its position in shares of Reddit by 2.1% during the 1st quarter. Diversified Trust Co now owns 3,271 shares of the company's stock valued at $440,000 after acquiring an additional 68 shares during the last quarter.

About Reddit

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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