Reddit (NYSE:RDDT) Given New $210.00 Price Target at Piper Sandler

Key Points

• Piper Sandler raised Reddit's price target from $150.00 to $210.00, indicating a potential upside of 30.33% from its previous close and maintaining an "overweight" rating on the stock.
• Reddit recently reported a quarterly earnings per share of $0.45, exceeding analysts' expectations of $0.20, with revenues up 77.9% year-over-year.
• Several institutional investors, including AllianceBernstein and Vanguard Group, significantly increased their stakes in Reddit, showcasing growing confidence in the company.

Reddit (NYSE:RDDT - Get Free Report) had its target price boosted by equities researchers at Piper Sandler from $150.00 to $210.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Piper Sandler's target price points to a potential upside of 30.33% from the company's previous close.

Several other equities analysts have also recently weighed in on RDDT. Oppenheimer started coverage on Reddit in a report on Wednesday, April 16th. They set an "outperform" rating and a $125.00 price target on the stock. Truist Financial assumed coverage on shares of Reddit in a research note on Monday, April 7th. They issued a "buy" rating and a $150.00 price target on the stock. Loop Capital dropped their price target on Reddit from $210.00 to $200.00 and set a "buy" rating for the company in a research report on Thursday, June 12th. B. Riley reiterated a "buy" rating and issued a $220.00 price target (down from $222.00) on shares of Reddit in a report on Friday, May 2nd. Finally, Wall Street Zen upgraded shares of Reddit from a "hold" rating to a "buy" rating in a report on Saturday, June 14th. One research analyst has rated the stock with a sell rating, nine have given a hold rating, thirteen have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $154.83.

Reddit Stock Up 7.9%

RDDT opened at $161.13 on Friday. The stock has a market cap of $29.73 billion, a price-to-earnings ratio of 273.11, a PEG ratio of 3.81 and a beta of 2.33. The company's 50-day moving average price is $135.22 and its two-hundred day moving average price is $138.51. Reddit has a twelve month low of $49.13 and a twelve month high of $230.41.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $0.45 earnings per share for the quarter, beating analysts' consensus estimates of $0.20 by $0.25. The business had revenue of $499.63 million for the quarter, compared to the consensus estimate of $424.07 million. Reddit had a net margin of 8.07% and a return on equity of 5.69%. Reddit's quarterly revenue was up 77.9% on a year-over-year basis. During the same period last year, the firm posted ($0.06) earnings per share. As a group, sell-side analysts anticipate that Reddit will post 1.12 earnings per share for the current year.

Insider Transactions at Reddit

In other news, CFO Andrew Vollero sold 30,000 shares of the company's stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $117.64, for a total value of $3,529,200.00. Following the completion of the transaction, the chief financial officer owned 333,806 shares in the company, valued at $39,268,937.84. This represents a 8.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Jennifer L. Wong sold 33,334 shares of the business's stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $142.06, for a total value of $4,735,428.04. Following the completion of the sale, the chief operating officer owned 1,428,007 shares in the company, 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. Insiders have sold a total of 506,809 shares of company stock valued at $61,884,325 over the last 90 days. 34.25% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Alliancebernstein L.P. lifted its stake in shares of Reddit by 103.0% during the 1st quarter. Alliancebernstein L.P. now owns 5,659,990 shares of the company's stock worth $593,733,000 after buying an additional 2,871,232 shares during the last quarter. Whale Rock Capital Management LLC bought a new position in Reddit in the 4th quarter valued at about $204,054,000. Renaissance Technologies LLC lifted its position in Reddit by 265.4% during the fourth quarter. Renaissance Technologies LLC now owns 1,650,500 shares of the company's stock worth $269,758,000 after acquiring an additional 1,198,800 shares during the last quarter. Nordea Investment Management AB increased its stake in shares of Reddit by 21,703.0% during the second quarter. Nordea Investment Management AB now owns 1,060,935 shares of the company's stock worth $164,021,000 after purchasing an additional 1,056,069 shares during the period. Finally, Vanguard Group Inc. lifted its holdings in Reddit by 11.1% during the 1st quarter. Vanguard Group Inc. now owns 10,198,552 shares of the company's stock worth $1,069,828,000 after purchasing an additional 1,017,162 shares during the last quarter.

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.

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