Reddit (NYSE:RDDT) Price Target Lowered to $175.00 at Bank of America

Key Points

• Bank of America cut its price target on Reddit from $205 to $175 and kept a "neutral" rating, which the firm said implied roughly a 28.3% upside from the then-current price.
• Reddit beat expectations for the quarter with $1.24 EPS (vs. $0.96 est.) and $725.6M revenue—up 69.7% year-over-year—with a 24.05% net margin.
• Insider activity was mixed: CEO Steve Huffman sold 18,000 shares at about $232.78 while a director acquired 43,800 shares at $149.52, and insiders own 34.25% of the company.

Reddit (NYSE:RDDT - Get Free Report) had its price target cut by investment analysts at Bank of America from $205.00 to $175.00 in a research note issued on Thursday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Bank of America's price target would indicate a potential upside of 28.29% from the stock's current price.

RDDT has been the topic of several other research reports. Evercore reissued an "outperform" rating and set a $290.00 price objective on shares of Reddit in a report on Friday, February 6th. The Goldman Sachs Group cut their price target on shares of Reddit from $236.00 to $206.00 and set a "neutral" rating for the company in a research note on Friday, February 6th. Roth Mkm boosted their target price on shares of Reddit from $210.00 to $215.00 and gave the company a "neutral" rating in a research note on Friday, January 30th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Reddit in a research note on Monday, December 29th. Finally, Robert W. Baird set a $200.00 price target on shares of Reddit in a research report on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $240.85.

Reddit Stock Up 1.3%

RDDT stock opened at $136.41 on Thursday. Reddit has a 12 month low of $79.75 and a 12 month high of $282.95. The firm has a 50 day moving average of $150.24 and a two-hundred day moving average of $195.96. The company has a market capitalization of $26.06 billion, a price-to-earnings ratio of 52.07, a P/E/G ratio of 0.98 and a beta of 2.39.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings results on Thursday, February 5th. The company reported $1.24 EPS for the quarter, beating the consensus estimate of $0.96 by $0.28. The company had revenue of $725.61 million for the quarter, compared to the consensus estimate of $665.80 million. Reddit had a return on equity of 20.89% and a net margin of 24.05%.The company's revenue for the quarter was up 69.7% compared to the same quarter last year. During the same quarter last year, the company posted $0.36 earnings per share. On average, research analysts expect that Reddit will post 1.12 EPS for the current fiscal year.

Insider Activity

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the firm's stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $232.78, for a total value of $4,190,040.00. Following the completion of the sale, the chief executive officer directly owned 448,576 shares in the company, valued at approximately $104,419,521.28. This trade represents a 3.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Sarah E. Farrell acquired 43,800 shares of the firm's stock in a transaction on Tuesday, February 10th. The stock was bought at an average price of $149.52 per share, for a total transaction of $6,548,976.00. Following the completion of the acquisition, the director owned 43,800 shares of the company's stock, valued at approximately $6,548,976. The trade was a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have acquired 61,000 shares of company stock worth $8,870,815 and have sold 337,078 shares worth $61,254,343. Insiders own 34.25% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Huntington National Bank raised its position in shares of Reddit by 25.6% in the third quarter. Huntington National Bank now owns 270 shares of the company's stock valued at $62,000 after buying an additional 55 shares in the last quarter. Institute for Wealth Management LLC. lifted its stake in Reddit by 6.1% during the fourth 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 during the last quarter. Roxbury Financial LLC lifted its position in shares of Reddit by 7.4% during the 4th quarter. Roxbury Financial LLC now owns 929 shares of the company's stock worth $214,000 after buying an additional 64 shares during the last quarter. AdvisorNet Financial Inc boosted its stake in shares of 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 in the last quarter. Finally, Florida Financial Advisors LLC lifted its stake in Reddit by 6.7% in 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 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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