Reddit (NYSE:RDDT) Coverage Initiated at Wells Fargo & Company

Key Points

• Wells Fargo initiated coverage of Reddit (RDDT) with an "equal weight" rating and a $149 price target, implying roughly a 7.4% upside from the prior close.
• Reddit's latest quarter topped estimates—EPS of $1.24 vs $0.96 expected and revenue of $725.6M (up 69.7% year-over-year)—with a net margin of about 24%.
• Analysts hold a consensus "Moderate Buy" on RDDT with a mean price target of $238.46, though individual targets vary widely (about $149 to $300), signaling mixed sentiment.

Equities researchers at Wells Fargo & Company began coverage on shares of Reddit (NYSE:RDDT - Get Free Report) in a report released on Tuesday. The brokerage set an "equal weight" rating and a $149.00 price target on the stock. Wells Fargo & Company's price target indicates a potential upside of 7.40% from the company's previous close.

Several other research analysts have also recently issued reports on the company. Guggenheim increased their price target on Reddit from $245.00 to $255.00 and gave the stock a "buy" rating in a research note on Friday, February 6th. Oppenheimer decreased their price target on Reddit from $300.00 to $250.00 and set an "outperform" rating for the company in a research note on Friday, February 6th. Needham & Company LLC reissued a "buy" rating and issued a $300.00 price target on shares of Reddit in a research note on Friday, February 6th. Zacks Research cut Reddit from a "strong-buy" rating to a "hold" rating in a research note on Friday, December 26th. Finally, The Goldman Sachs Group decreased their price target on Reddit from $236.00 to $206.00 and set a "neutral" rating for the company in a research note on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $238.46.

Reddit Stock Performance

NYSE:RDDT opened at $138.74 on Tuesday. Reddit has a 1 year low of $79.75 and a 1 year high of $282.95. The stock has a market cap of $26.50 billion, a price-to-earnings ratio of 52.95, a PEG ratio of 0.99 and a beta of 2.40. The business has a fifty day moving average of $145.51 and a 200-day moving average of $192.72.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, topping 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 company had revenue of $725.61 million during the quarter, compared to analysts' expectations of $665.80 million. During the same quarter in the prior year, the business posted $0.36 earnings per share. The company's revenue for the quarter was up 69.7% compared to the same quarter last year. On average, equities research analysts predict that Reddit will post 1.12 EPS for the current year.

Insider Buying and Selling at Reddit

In related news, insider Benjamin Seong Lee sold 27,930 shares of the firm's stock in a transaction dated Wednesday, January 7th. The stock was sold at an average price of $260.08, for a total transaction of $7,264,034.40. Following the completion of the transaction, the insider owned 62,608 shares of the company's stock, valued at $16,283,088.64. This trade represents a 30.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Sarah E. Farrell bought 43,800 shares of the firm's stock in a transaction that occurred on Tuesday, February 10th. The shares were purchased at an average cost of $149.52 per share, with a total value of $6,548,976.00. Following the purchase, the director directly owned 43,800 shares of the company's stock, valued at approximately $6,548,976. This represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last three months, insiders have purchased 61,000 shares of company stock valued at $8,870,815 and have sold 346,665 shares valued at $61,518,069. Corporate insiders own 34.25% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of RDDT. Raiffeisen Bank International AG purchased a new stake in shares of Reddit during the third quarter valued at $25,000. GW&K Investment Management LLC purchased a new stake in shares of Reddit during the third quarter valued at $30,000. Cornerstone Planning Group LLC lifted its holdings in shares of Reddit by 13,500.0% during the third quarter. Cornerstone Planning Group LLC now owns 136 shares of the company's stock valued at $31,000 after purchasing an additional 135 shares during the last quarter. LOM Asset Management Ltd purchased a new stake in shares of Reddit during the fourth quarter valued at $33,000. Finally, Noble Wealth Management PBC purchased a new stake in shares of Reddit during the fourth quarter valued at $34,000.

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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