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

Key Points

• Wall Street Zen downgraded Reddit (NYSE:RDDT) from a "buy" to a "hold" rating in a report released Saturday, even as many other firms still rate the stock a buy and the consensus rating is "Moderate Buy."
• Reddit beat expectations for the quarter, reporting $1.24 EPS versus $0.96 expected and revenue of $725.6 million (up 69.7% year-over-year), with a 24.05% net margin and 20.89% ROE.
• There has been notable insider selling recently—449,084 shares (~$93.7 million) sold over the last 90 days—though insiders still own about 34.25% of the company.

Reddit (NYSE:RDDT - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

A number of other analysts also recently weighed in on RDDT. Roth Mkm increased their price target on Reddit from $210.00 to $215.00 and gave the stock a "neutral" rating in a report on Friday, January 30th. China Renaissance began coverage on Reddit in a research report on Tuesday, December 9th. They set a "buy" rating and a $300.00 target price on the stock. Evercore reiterated an "outperform" rating and issued a $290.00 target price on shares of Reddit in a report on Friday, February 6th. Needham & Company LLC restated a "buy" rating and set a $300.00 price target on shares of Reddit in a report on Friday, February 6th. Finally, Guggenheim lifted their price objective on shares of Reddit from $245.00 to $255.00 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 given a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Reddit has an average rating of "Moderate Buy" and a consensus price target of $238.78.

Reddit Stock Performance

Reddit stock opened at $139.65 on Friday. The firm has a market cap of $26.68 billion, a price-to-earnings ratio of 53.30, a PEG ratio of 1.05 and a beta of 2.40. Reddit has a 52-week low of $79.75 and a 52-week high of $282.95. The firm has a 50 day moving average price of $187.51 and a two-hundred day moving average price of $208.00.

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

Insider Activity

In related news, insider Benjamin Seong Lee sold 5,575 shares of Reddit stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $143.35, for a total value of $799,176.25. Following the completion of the sale, the insider owned 79,309 shares of the company's stock, valued at approximately $11,368,945.15. This trade represents a 6.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CTO Christopher Brian Slowe sold 19,036 shares of the business's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $144.05, for a total transaction of $2,742,135.80. Following the sale, the chief technology officer owned 185,057 shares of the company's stock, valued at $26,657,460.85. This trade represents a 9.33% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 449,084 shares of company stock valued at $93,738,449. Corporate insiders own 34.25% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Huntington National Bank increased its position in shares of Reddit by 25.6% during the third quarter. Huntington National Bank now owns 270 shares of the company's stock worth $62,000 after acquiring an additional 55 shares in the last quarter. Institute for Wealth Management LLC. lifted its position in Reddit by 6.1% in the 4th quarter. Institute for Wealth Management LLC. now owns 1,071 shares of the company's stock valued at $246,000 after acquiring an additional 62 shares in the last quarter. Roxbury Financial LLC boosted its stake in Reddit by 7.4% during the 4th quarter. Roxbury Financial LLC now owns 929 shares of the company's stock valued at $214,000 after purchasing an additional 64 shares during the last quarter. Resona Asset Management Co. Ltd. increased its holdings in Reddit by 0.3% during the 2nd quarter. Resona Asset Management Co. Ltd. now owns 20,201 shares of the company's stock worth $3,023,000 after purchasing an additional 65 shares in the last quarter. Finally, AdvisorNet Financial Inc increased its holdings in Reddit by 2.8% during the 3rd quarter. AdvisorNet Financial Inc now owns 2,464 shares of the company's stock worth $567,000 after purchasing an additional 66 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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