Reddit (NYSE:RDDT) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Reddit to “Hold” from “Buy,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $220.90.
• Reddit reported strong quarterly results, posting $1.25 in EPS versus the $0.95 estimate and $804.91 million in revenue, up 61% year over year and above expectations.
• Reddit shares opened at $161.73, while insiders sold approximately $28.5 million worth of stock over the past quarter, including 18,000 shares sold by CEO Steve Huffman under a pre-arranged trading plan.

Reddit (NYSE:RDDT - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Sunday.

Other equities analysts have also issued reports about the stock. JPMorgan Chase & Co. decreased their price objective on shares of Reddit from $200.00 to $185.00 and set a "neutral" rating for the company in a report on Friday, July 31st. Robert W. Baird set a $185.00 target price on Reddit in a research note on Friday, July 31st. Jefferies Financial Group set a $250.00 target price on Reddit in a report on Friday, July 10th. Evercore restated an "outperform" rating and issued a $265.00 price target on shares of Reddit in a research note on Friday, July 31st. Finally, Truist Financial upped their price target on Reddit from $265.00 to $275.00 and gave the company a "buy" rating in a report on Friday, July 31st. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $220.90.

Reddit Stock Performance

Shares of Reddit stock opened at $161.73 on Friday. The stock has a market capitalization of $31.13 billion, a PE ratio of 37.61, a price-to-earnings-growth ratio of 0.54 and a beta of 2.03. Reddit has a 52-week low of $119.27 and a 52-week high of $282.95. The company has a 50-day simple moving average of $176.68 and a two-hundred day simple moving average of $161.90.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The firm had revenue of $804.91 million for the quarter, compared to the consensus estimate of $731.00 million. During the same quarter in the prior year, the firm posted $0.45 earnings per share. The business's revenue was up 61.0% on a year-over-year basis. As a group, equities research analysts forecast that Reddit will post 5.22 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $159.78, for a total value of $2,876,040.00. Following the sale, the chief executive officer owned 373,814 shares in the company, valued at approximately $59,728,000.92. This trade represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Marie Reynolds sold 808 shares of the business's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $200.00, for a total transaction of $161,600.00. Following the sale, the chief accounting officer owned 15,060 shares of the company's stock, valued at approximately $3,012,000. This represents a 5.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 169,141 shares of company stock worth $28,464,485. 28.48% of the stock is owned by insiders.

Institutional Trading of Reddit

Hedge funds have recently bought and sold shares of the company. LOM Asset Management Ltd bought a new stake in shares of Reddit during the 4th quarter valued at about $33,000. Sunbelt Securities Inc. increased its position in shares of Reddit by 87.5% during the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company's stock valued at $26,000 after purchasing an additional 91 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Reddit by 48.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company's stock worth $34,000 after purchasing an additional 64 shares during the period. Beacon Investment Advisory Services Inc. bought a new position in shares of Reddit in the 2nd quarter worth approximately $35,000. Finally, Summit Securities Group LLC bought a new position in shares of Reddit in the 4th quarter worth approximately $46,000.

Reddit Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source