Brokerages Set Reddit Inc. (NYSE:RDDT) Target Price at $164.21

Key Points

• Reddit Inc. has received an average rating of "Moderate Buy" from twenty-four brokerages, with an average 12-month price target of $164.21.
• Recent price target increases from analysts include Bank of America raising their target to $150, while JMP Securities set a target of $225.
• Reddit's stock has surged 17.4%, reflecting positive trading momentum, with a one-year high of $230.41 and revenue growth of 77.9% year-over-year.

Reddit Inc. (NYSE:RDDT - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the twenty-five research firms that are currently covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, nine have assigned a hold recommendation, thirteen have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $164.2083.

Several equities research analysts have commented on the stock. JMP Securities upped their price target on shares of Reddit from $180.00 to $225.00 and gave the company a "market outperform" rating in a report on Friday. JPMorgan Chase & Co. increased their target price on shares of Reddit from $145.00 to $190.00 and gave the stock a "neutral" rating in a research note on Friday. Citigroup increased their target price on shares of Reddit from $158.00 to $163.00 and gave the stock a "buy" rating in a research note on Tuesday, June 24th. Royal Bank Of Canada set a $125.00 target price on shares of Reddit and gave the stock a "sector perform" rating in a research note on Wednesday, June 25th. Finally, Sanford C. Bernstein increased their target price on shares of Reddit from $130.00 to $150.00 and gave the stock a "market perform" rating in a research note on Tuesday, July 22nd.

Reddit Price Performance

NYSE:RDDT traded up $12.68 during mid-day trading on Friday, hitting $201.32. The company's stock had a trading volume of 15,068,218 shares, compared to its average volume of 7,968,140. Reddit has a 1 year low of $49.13 and a 1 year high of $230.41. The stock has a market cap of $37.15 billion, a price-to-earnings ratio of 183.02, a PEG ratio of 4.76 and a beta of 2.30. The business's fifty day moving average is $136.97 and its two-hundred day moving average is $138.20.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.45 EPS for the quarter, beating the consensus estimate of $0.20 by $0.25. Reddit had a net margin of 12.97% and a return on equity of 10.26%. The company had revenue of $499.63 million for the quarter, compared to analyst estimates of $424.07 million. During the same period in the prior year, the company earned ($0.06) earnings per share. The firm's revenue was up 77.9% on a year-over-year basis. Analysts anticipate that Reddit will post 1.12 EPS for the current fiscal year.

Insider Activity at Reddit

In related news, CTO Christopher Brian Slowe sold 26,000 shares of the stock in a transaction that occurred on Thursday, May 22nd. The shares were sold at an average price of $98.43, for a total transaction of $2,559,180.00. Following the completion of the transaction, the chief technology officer owned 251,373 shares of the company's stock, valued at approximately $24,742,644.39. This trade represents a 9.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Jennifer L. Wong sold 33,334 shares of the stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $142.06, for a total transaction of $4,735,428.04. Following the transaction, the chief operating officer directly owned 1,428,007 shares of the company's stock, valued at $202,862,674.42. The trade was a 2.28% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 506,809 shares of company stock worth $61,884,325. Company insiders own 34.25% of the company's stock.

Hedge Funds Weigh In On Reddit

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Financial Perspectives Inc purchased a new position in Reddit in the 2nd quarter valued at approximately $34,000. CWM LLC boosted its position in Reddit by 100.0% in the 1st quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after buying an additional 128 shares during the period. Fourth Dimension Wealth LLC purchased a new position in Reddit in the 4th quarter valued at approximately $49,000. Chelsea Counsel Co. purchased a new position in Reddit in the 4th quarter valued at approximately $49,000. Finally, Stone House Investment Management LLC purchased a new stake in shares of Reddit during the 1st quarter worth $31,000.

Reddit Company Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.