Reddit (NYSE:RDDT) Coverage Initiated at Royal Bank of Canada

Royal Bank of Canada started coverage on shares of Reddit (NYSE:RDDT - Free Report) in a research note released on Tuesday morning, Marketbeat reports. The brokerage issued a sector perform rating and a $125.00 price objective on the stock.

Other analysts have also recently issued research reports about the stock. Wall Street Zen cut shares of Reddit from a "buy" rating to a "hold" rating in a report on Friday, May 30th. The Goldman Sachs Group lifted their target price on shares of Reddit from $124.00 to $140.00 and gave the company a "neutral" rating in a research note on Friday, May 2nd. Redburn Partners set a $75.00 price target on shares of Reddit in a research note on Monday, March 17th. Loop Capital reaffirmed a "buy" rating and set a $210.00 price objective on shares of Reddit in a research report on Tuesday, March 11th. Finally, Sanford C. Bernstein upgraded Reddit from an "underperform" rating to a "market perform" rating and set a $130.00 target price on the stock in a report on Friday, May 2nd. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating, twelve have given a buy rating and two have given a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $139.78.

Reddit Stock Up 6.7%

Shares of NYSE:RDDT traded up $7.41 during midday trading on Tuesday, hitting $118.27. 8,669,982 shares of the stock traded hands, compared to its average volume of 6,192,819. The business's 50 day moving average is $106.09 and its two-hundred day moving average is $144.11. The stock has a market capitalization of $21.82 billion, a PE ratio of -15.30, a P/E/G ratio of 4.72 and a beta of 2.90. Reddit has a one year low of $49.13 and a one year high of $230.41.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings results on Thursday, May 1st. The company reported $0.13 EPS for the quarter, beating analysts' consensus estimates of $0.02 by $0.11. The business had revenue of $392.36 million during the quarter, compared to analyst estimates of $370.55 million. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. Reddit's quarterly revenue was up 61.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($8.19) EPS. As a group, sell-side analysts forecast that Reddit will post 1.12 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Steve Ladd Huffman sold 14,000 shares of Reddit stock in a transaction on Friday, May 30th. The shares were sold at an average price of $110.05, for a total transaction of $1,540,700.00. Following the transaction, the chief executive officer now owns 560,133 shares in the company, valued at $61,642,636.65. This trade represents a 2.44% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director David C. Habiger acquired 774 shares of the firm's stock in a transaction dated Wednesday, March 12th. The stock was bought at an average cost of $130.36 per share, for a total transaction of $100,898.64. Following the purchase, the director now directly owns 30,808 shares of the company's stock, valued at approximately $4,016,130.88. This trade represents a 2.58% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last quarter, insiders sold 677,875 shares of company stock valued at $76,732,994.

Hedge Funds Weigh In On Reddit

A number of hedge funds have recently modified their holdings of RDDT. Janney Montgomery Scott LLC boosted its holdings in Reddit by 31.3% in the 4th quarter. Janney Montgomery Scott LLC now owns 8,786 shares of the company's stock worth $1,436,000 after buying an additional 2,096 shares during the period. Blue Trust Inc. purchased a new position in shares of Reddit in the fourth quarter valued at about $59,000. Spire Wealth Management bought a new position in shares of Reddit in the fourth quarter worth about $35,000. Renaissance Capital LLC grew its position in shares of Reddit by 14.2% during the fourth quarter. Renaissance Capital LLC now owns 31,236 shares of the company's stock worth $5,105,000 after purchasing an additional 3,892 shares in the last quarter. Finally, WT Asset Management Ltd bought a new stake in Reddit during the 4th quarter valued at approximately $8,188,000.

About Reddit

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.