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

Key Points

• Analyst consensus is “Moderate Buy”: Among 32 brokerages, 19 rate Reddit a buy, 11 recommend holding, and two issue strong-buy ratings. The average 12-month price target is approximately $220.90.
• Reddit exceeded quarterly expectations: The company reported $1.25 in earnings per share versus the $0.95 consensus estimate, while revenue reached $804.91 million, up 61% year over year and above analysts’ $731 million forecast.
• Insiders have been selling shares: Executives sold 169,141 shares worth about $28.5 million over the past 90 days, although insiders still own 28.48% of the company. RDDT recently traded at $153.46, well below its 52-week high of $282.95.

Shares of Reddit Inc. (NYSE:RDDT - Get Free Report) have been given a consensus rating of "Moderate Buy" by the thirty-two brokerages that are currently covering the stock, Marketbeat.com reports. Eleven research analysts have rated the stock with a hold rating, nineteen have assigned a buy rating and two have issued a strong buy rating on the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $220.9032.

Several equities research analysts have weighed in on the company. Sanford C. Bernstein reiterated a "market perform" rating and issued a $180.00 target price on shares of Reddit in a report on Friday, July 31st. Citigroup restated a "market outperform" rating on shares of Reddit in a report on Friday, July 31st. Citizens Jmp lowered their price objective on shares of Reddit from $250.00 to $240.00 and set a "market outperform" rating for the company in a research note on Friday, May 1st. KeyCorp assumed coverage on shares of Reddit in a report on Wednesday, July 29th. They set an "overweight" rating and a $225.00 target price on the stock. Finally, Telsey Advisory Group set a $240.00 target price on shares of Reddit in a research report on Friday, July 31st.

Insider Activity

In other news, CAO Michelle Marie Reynolds sold 808 shares of Reddit stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the transaction, the chief accounting officer directly owned 15,060 shares in the company, valued at approximately $3,012,000. This trade represents a 5.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the business's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $178.26, for a total value of $3,208,680.00. Following the completion of the transaction, the chief executive officer directly owned 373,814 shares of the company's stock, valued at approximately $66,636,083.64. The trade was a 4.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 169,141 shares of company stock worth $28,464,485. Corporate insiders own 28.48% of the company's stock.

Hedge Funds Weigh In On Reddit

Several institutional investors and hedge funds have recently added to or reduced their stakes in RDDT. Sunbelt Securities Inc. boosted its holdings in shares of Reddit by 87.5% in the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company's stock valued at $26,000 after buying an additional 91 shares in the last quarter. Ascentis Independent Advisors purchased a new position in shares of Reddit in the 1st quarter worth approximately $30,000. LOM Asset Management Ltd purchased a new position in shares of Reddit in the 4th quarter worth approximately $33,000. EverSource Wealth Advisors LLC raised its stake in shares of Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company's stock worth $34,000 after acquiring an additional 64 shares in the last quarter. Finally, Beacon Investment Advisory Services Inc. bought a new position in shares of Reddit during the 2nd quarter worth approximately $35,000.

Reddit Price Performance

Shares of RDDT opened at $153.46 on Thursday. The firm has a market capitalization of $29.53 billion, a price-to-earnings ratio of 35.69, a PEG ratio of 0.52 and a beta of 2.03. Reddit has a 1-year low of $119.27 and a 1-year high of $282.95. The company has a 50-day moving average of $175.72 and a 200 day moving average of $160.12.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping analysts' consensus estimates of $0.95 by $0.30. The business had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The company's quarterly revenue was up 61.0% compared to the same quarter last year. During the same period last year, the company posted $0.45 earnings per share. On average, equities analysts anticipate that Reddit will post 5.22 earnings per share for the current fiscal 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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