Reddit (NYSE:RDDT) Price Target Lowered to $250.00 at Jefferies Financial Group

Key Points

• Jefferies cut its price target on Reddit from $285 to $250 while maintaining a "buy" rating, implying roughly an 81.7% upside from the recent close.
• Reddit reported a strong quarter—EPS $1.24 vs. $0.96 expected and revenue $725.6M (up ~69.7% year-over-year)—with a 24.05% net margin and 20.89% ROE, indicating robust growth and profitability.
• The consensus among analysts is a Moderate Buy with an average target of $236 (individual targets range roughly $200–$300), while insiders sold about 423,835 shares (~$87.8M) in the last quarter.

Reddit (NYSE:RDDT - Get Free Report) had its price objective reduced by investment analysts at Jefferies Financial Group from $285.00 to $250.00 in a research report issued on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the stock. Jefferies Financial Group's price objective points to a potential upside of 81.71% from the stock's previous close.

A number of other research analysts have also recently weighed in on the company. Needham & Company LLC reiterated a "buy" rating and issued a $300.00 target price on shares of Reddit in a report on Friday, February 6th. UBS Group set a $265.00 target price on shares of Reddit in a research report on Tuesday, January 13th. Robert W. Baird set a $200.00 price objective on shares of Reddit in a research note on Friday, February 6th. Morgan Stanley set a $240.00 target price on shares of Reddit in a report on Friday, February 6th. Finally, Oppenheimer cut their price objective on Reddit from $300.00 to $250.00 and set an "outperform" rating on the stock in a research report on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $236.00.

Reddit Stock Performance

NYSE RDDT traded down $1.28 during trading hours on Tuesday, hitting $137.58. 3,731,231 shares of the company's stock were exchanged, compared to its average volume of 5,799,379. The business's 50 day moving average is $185.60 and its 200-day moving average is $207.22. Reddit has a 12-month low of $79.75 and a 12-month high of $282.95. The firm has a market capitalization of $26.28 billion, a P/E ratio of 52.35, a price-to-earnings-growth ratio of 1.01 and a beta of 2.41.

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

Insiders Place Their Bets

In other news, CAO Michelle Marie Reynolds sold 2,291 shares of the business's stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $143.59, for a total value of $328,964.69. Following the completion of the sale, the chief accounting officer directly owned 17,133 shares in the company, valued at approximately $2,460,127.47. The trade was a 11.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Benjamin Seong Lee sold 5,575 shares of the business's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $143.35, for a total transaction of $799,176.25. Following the sale, the insider owned 79,309 shares of the company's stock, valued at approximately $11,368,945.15. The trade was a 6.57% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 423,835 shares of company stock worth $87,842,134. Company insiders own 34.25% of the company's stock.

Hedge Funds Weigh In On Reddit

Several institutional investors have recently made changes to their positions in the stock. Raiffeisen Bank International AG acquired a new position in Reddit during the 3rd quarter valued at approximately $25,000. GW&K Investment Management LLC acquired a new stake in shares of Reddit in the 3rd quarter worth about $30,000. Cornerstone Planning Group LLC boosted its stake in Reddit by 13,500.0% during the 3rd quarter. Cornerstone Planning Group LLC now owns 136 shares of the company's stock valued at $31,000 after purchasing an additional 135 shares during the period. LOM Asset Management Ltd acquired a new stake in shares of Reddit in the fourth quarter valued at approximately $33,000. Finally, Noble Wealth Management PBC bought a new stake in shares of Reddit during the fourth quarter valued at approximately $34,000.

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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