Reddit (NYSE:RDDT) Downgraded by Wall Street Zen to Hold

Key Points

• Wall Street Zen downgraded Reddit from a "buy" to a "hold" rating in a research note issued Monday.
• Despite the downgrade, analysts collectively still show a Moderate Buy consensus (1 Strong Buy, 17 Buy, 11 Hold) with a consensus price target of $242.19 and several firms maintaining or raising price targets.
• Reddit posted a strong quarter—EPS $1.24 beating estimates and revenue $725.6M (up 69.7% year-over-year)—and saw notable insider activity, including Director Sarah Farrell purchasing 43,800 shares (~$6.55M) while CEO Steve Huffman sold 18,000 shares earlier.

Reddit (NYSE:RDDT - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Monday.

RDDT has been the subject of several other reports. B. Riley Financial lifted their price objective on Reddit from $245.00 to $250.00 and gave the company a "buy" rating in a report on Friday, February 6th. Needham & Company LLC reissued a "buy" rating and set a $300.00 price objective on shares of Reddit in a report on Friday, February 6th. Robert W. Baird set a $200.00 price target on Reddit in a research report on Friday, February 6th. Piper Sandler restated an "overweight" rating and issued a $205.00 price target (down from $290.00) on shares of Reddit in a research report on Friday, February 6th. Finally, Truist Financial boosted their price objective on Reddit from $270.00 to $275.00 and gave the company a "buy" rating in a research note on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eleven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $242.19.

Reddit Price Performance

Reddit stock opened at $140.18 on Monday. The company has a market cap of $26.78 billion, a price-to-earnings ratio of 53.50, a P/E/G ratio of 1.02 and a beta of 2.41. The firm has a 50-day moving average of $166.67 and a 200-day moving average of $201.96. Reddit has a one year low of $79.75 and a one year high of $282.95.

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

Insider Activity

In other Reddit news, Director Sarah E. Farrell bought 43,800 shares of the business's stock in a transaction dated Tuesday, February 10th. The shares were purchased at an average price of $149.52 per share, for a total transaction 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 acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Steve Ladd Huffman sold 18,000 shares of the business's stock in a transaction 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 completion of the transaction, the chief executive officer directly owned 448,576 shares in the company, valued at approximately $104,419,521.28. This represents a 3.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have purchased 61,000 shares of company stock worth $8,870,815 and have sold 345,578 shares worth $64,065,863. 34.25% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Reddit

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Huntington National Bank grew its stake in Reddit by 25.6% during the third quarter. Huntington National Bank now owns 270 shares of the company's stock valued at $62,000 after acquiring an additional 55 shares in the last quarter. Institute for Wealth Management LLC. lifted its stake in Reddit by 6.1% in the 4th quarter. Institute for Wealth Management LLC. now owns 1,071 shares of the company's stock worth $246,000 after purchasing an additional 62 shares in the last quarter. Roxbury Financial LLC lifted its stake in Reddit by 7.4% in the 4th quarter. Roxbury Financial LLC now owns 929 shares of the company's stock worth $214,000 after purchasing an additional 64 shares in the last quarter. AdvisorNet Financial Inc boosted its holdings in Reddit by 2.8% in the 3rd quarter. AdvisorNet Financial Inc now owns 2,464 shares of the company's stock valued at $567,000 after purchasing an additional 66 shares during the period. Finally, Florida Financial Advisors LLC grew 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 purchasing an additional 68 shares in 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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