Reddit Inc. (NYSE:RDDT) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Consensus: Reddit has a consensus rating of "Moderate Buy" from 29 analysts (17 buys, 11 holds, 1 strong buy) with an average 12‑month price target of $238.46.
• Earnings beat and market data: Reddit reported $1.24 EPS and $725.61M in revenue (beating estimates) with revenue up 69.7% year‑over‑year, yet the stock trades near $138.42 (50‑day $142.41; 200‑day $191.14) and was down 4.5%.
• Insider activity: Top executives recently sold shares (COO sold 33,507; CEO sold 18,000), insiders were net sellers over the last 90 days (sold ~300,615 vs bought 61,000) but still own 34.25% of the company.

Reddit Inc. (NYSE:RDDT - Get Free Report) has received a consensus rating of "Moderate Buy" from the twenty-nine research firms that are currently covering the stock, MarketBeat.com reports. Eleven research analysts have rated the stock with a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $238.4615.

Several analysts have weighed in on RDDT shares. Cantor Fitzgerald lowered their price target on Reddit from $240.00 to $170.00 and set a "neutral" rating on the stock in a report on Friday, February 6th. Needham & Company LLC reiterated a "buy" rating and set a $300.00 price objective on shares of Reddit in a research report on Friday, February 6th. Oppenheimer reduced their price objective on Reddit from $300.00 to $250.00 and set an "outperform" rating on the stock in a research report on Friday, February 6th. Wall Street Zen lowered Reddit from a "buy" rating to a "hold" rating in a research report on Wednesday. Finally, Zacks Research lowered Reddit from a "strong-buy" rating to a "hold" rating in a research report on Friday, December 26th.

Reddit Stock Down 4.5%

NYSE:RDDT opened at $138.42 on Friday. The business's 50-day moving average price is $142.41 and its two-hundred day moving average price is $191.14. Reddit has a twelve month low of $90.78 and a twelve month high of $282.95. The stock has a market cap of $26.44 billion, a P/E ratio of 52.83, a PEG ratio of 1.05 and a beta of 2.40.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.28. Reddit had a return on equity of 20.89% and a net margin of 24.05%.The firm had revenue of $725.61 million for the quarter, compared to analysts' expectations of $665.80 million. During the same quarter last year, the firm posted $0.36 EPS. The company's revenue was up 69.7% compared to the same quarter last year. On average, equities research analysts expect that Reddit will post 1.12 EPS for the current fiscal year.

Insider Transactions at Reddit

In related news, COO Jennifer L. Wong sold 33,507 shares of the firm's stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $143.41, for a total transaction of $4,805,238.87. Following the transaction, the chief operating officer directly owned 1,088,451 shares in the company, valued at $156,094,757.91. This trade represents a 2.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Steve Ladd Huffman sold 18,000 shares of the firm's stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $232.78, for a total value of $4,190,040.00. Following the transaction, the chief executive officer owned 448,576 shares in the company, valued at approximately $104,419,521.28. The trade was a 3.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have bought 61,000 shares of company stock valued at $8,870,815 and have sold 300,615 shares valued at $49,627,551. 34.25% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Reddit

Institutional investors and hedge funds have recently bought and sold shares of the stock. Resona Asset Management Co. Ltd. grew its position in Reddit by 53.2% during the 3rd quarter. Resona Asset Management Co. Ltd. now owns 30,944 shares of the company's stock worth $7,166,000 after acquiring an additional 10,743 shares during the last quarter. Vanguard Group Inc. grew its position in shares of Reddit by 12.9% in the 3rd quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company's stock worth $2,814,734,000 after buying an additional 1,401,293 shares during the last quarter. Optimize Financial Inc bought a new stake in shares of Reddit in the 3rd quarter worth approximately $1,420,000. WT Asset Management Ltd bought a new stake in shares of Reddit in the 3rd quarter worth approximately $92,973,000. Finally, Wealth Enhancement Advisory Services LLC grew its position in shares of Reddit by 95.4% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 16,139 shares of the company's stock worth $3,712,000 after buying an additional 7,881 shares during the last quarter.

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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