Reddit (NYSE:RDDT) Price Target Cut to $250.00 by Analysts at Citizens Jmp

Key Points

• Citizens Jmp cut its price target on Reddit from $300 to $250 but kept a "market outperform" rating, a target that implies about a 56% upside from the stock's current level.
• Analyst consensus remains a "Moderate Buy" with an average price target of $234.22, based on 1 Strong Buy, 18 Buy and 11 Hold ratings among covering analysts.
• Reddit recently beat quarterly EPS ($1.24 vs. $0.96) and revenue ($725.6M vs. $665.8M) with revenue up 69.7% year-over-year, but it still trades at a high P/E (~61.6) and has seen notable insider selling.

Reddit (NYSE:RDDT - Get Free Report) had its price objective decreased by investment analysts at Citizens Jmp from $300.00 to $250.00 in a note issued to investors on Wednesday,Benzinga reports. The firm presently has a "market outperform" rating on the stock. Citizens Jmp's price objective indicates a potential upside of 56.26% from the stock's current price.

Other equities analysts have also recently issued research reports about the stock. Evercore reissued an "outperform" rating and set a $290.00 price objective on shares of Reddit in a research report on Friday, February 6th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Reddit in a research report on Monday, December 29th. Wells Fargo & Company initiated coverage on Reddit in a research note on Tuesday, April 7th. They set an "equal weight" rating and a $149.00 price target on the stock. 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. Finally, Zacks Research cut Reddit from a "strong-buy" rating to a "hold" rating in a research note on Friday, December 26th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and eleven have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $234.22.

Reddit Price Performance

Shares of Reddit stock opened at $159.99 on Wednesday. The stock's 50-day moving average is $142.26 and its 200 day moving average is $186.54. Reddit has a one year low of $94.89 and a one year high of $282.95. The firm has a market cap of $30.56 billion, a price-to-earnings ratio of 61.57, a PEG ratio of 1.21 and a beta of 2.40.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, topping analysts' consensus estimates of $0.96 by $0.28. Reddit had a return on equity of 20.89% and a net margin of 24.05%.The business had revenue of $725.61 million during the quarter, compared to the consensus estimate of $665.80 million. During the same period in the previous year, the company posted $0.36 earnings per share. The firm's revenue for the quarter was up 69.7% on a year-over-year basis. On average, sell-side analysts expect that Reddit will post 4.02 EPS for the current fiscal year.

Insider Buying and Selling at Reddit

In other Reddit news, CTO Christopher Brian Slowe sold 15,500 shares of the business's stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $150.67, for a total transaction of $2,335,385.00. Following the completion of the sale, the chief technology officer directly owned 38,413 shares of the company's stock, valued at approximately $5,787,686.71. The trade was a 28.75% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the company's stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $158.40, for a total value of $2,851,200.00. Following the sale, the chief executive officer owned 411,195 shares of the company's stock, valued at $65,133,288. This trade represents a 4.19% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders purchased 61,000 shares of company stock valued at $8,870,815 and sold 312,441 shares valued at $47,147,539. Corporate insiders own 34.25% of the company's stock.

Institutional Investors Weigh In On Reddit

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in shares of Reddit by 8.9% in the fourth quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company's stock valued at $3,062,339,000 after acquiring an additional 1,083,540 shares in the last quarter. Capital World Investors purchased a new stake in shares of Reddit during the fourth quarter valued at approximately $1,293,258,000. State Street Corp lifted its holdings in Reddit by 6.0% during the fourth quarter. State Street Corp now owns 2,631,332 shares of the company's stock worth $604,864,000 after acquiring an additional 149,401 shares during the period. Geode Capital Management LLC lifted its holdings in Reddit by 4.7% during the fourth quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company's stock worth $546,789,000 after acquiring an additional 106,821 shares during the period. Finally, Morgan Stanley boosted its position in Reddit by 11.4% in the fourth quarter. Morgan Stanley now owns 2,372,443 shares of the company's stock worth $545,354,000 after purchasing an additional 242,709 shares during the last quarter.

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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