Reddit (NYSE:RDDT) Stock Price Expected to Rise, Guggenheim Analyst Says

Key Points

• Guggenheim has raised its price target for Reddit (NYSE:RDDT) from $165.00 to $215.00, implying a potential upside of 12.12% from the current price while maintaining a "buy" rating.
• Reddit's stock experienced a significant increase, trading up 19.4% and reaching $191.75, with a notable trading volume of 9,815,248 shares recently.
• In its latest quarterly earnings report, Reddit beat expectations by posting $0.45 earnings per share (EPS) and generating $499.63 million in revenue, a 77.9% increase year-over-year.

Reddit (NYSE:RDDT - Get Free Report) had its price objective hoisted by Guggenheim from $165.00 to $215.00 in a research report issued on Friday,Benzinga reports. The firm currently has a "buy" rating on the stock. Guggenheim's price target would suggest a potential upside of 12.12% from the company's current price.

Several other brokerages have also issued reports on RDDT. Loop Capital decreased their price target on shares of Reddit from $210.00 to $200.00 and set a "buy" rating on the stock in a report on Thursday, June 12th. Truist Financial started coverage on shares of Reddit in a report on Monday, April 7th. They set a "buy" rating and a $150.00 price target on the stock. Wall Street Zen raised shares of Reddit from a "hold" rating to a "buy" rating in a report on Saturday, June 14th. Sanford C. Bernstein lifted their price target on shares of Reddit from $130.00 to $150.00 and gave the company a "market perform" rating in a report on Tuesday, July 22nd. Finally, Piper Sandler lifted their price target on shares of Reddit from $150.00 to $210.00 and gave the company an "overweight" rating in a report on Friday. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating, thirteen have issued a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $160.88.

Reddit Stock Up 19.4%

Shares of NYSE:RDDT traded up $31.16 during midday trading on Friday, hitting $191.75. The stock had a trading volume of 9,815,248 shares, compared to its average volume of 7,780,367. The company's 50-day moving average price is $135.22 and its 200-day moving average price is $138.51. The company has a market capitalization of $35.38 billion, a P/E ratio of 323.86, a price-to-earnings-growth ratio of 3.81 and a beta of 2.33. Reddit has a fifty-two week low of $49.13 and a fifty-two week high of $230.41.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $0.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.25. The company had revenue of $499.63 million for the quarter, compared to analyst estimates of $424.07 million. Reddit had a net margin of 8.07% and a return on equity of 5.69%. The firm's revenue was up 77.9% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.06) EPS. Research analysts expect that Reddit will post 1.12 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CAO Michelle Marie Reynolds sold 3,500 shares of the company's stock in a transaction on Wednesday, June 25th. The shares were sold at an average price of $150.64, for a total value of $527,240.00. Following the sale, the chief accounting officer directly owned 37,868 shares of the company's stock, valued at approximately $5,704,435.52. This represents a 8.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Steve Ladd Huffman sold 14,000 shares of the business's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $145.63, for a total transaction of $2,038,820.00. Following the transaction, the chief executive officer owned 539,631 shares in the company, valued at $78,586,462.53. The trade was a 2.53% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 506,809 shares of company stock worth $61,884,325. Corporate insiders own 34.25% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Ogborne Capital Management LLC acquired a new position in shares of Reddit during the 4th quarter valued at $11,539,000. Wells Fargo & Company MN lifted its position in shares of Reddit by 909.3% during the 4th quarter. Wells Fargo & Company MN now owns 97,183 shares of the company's stock valued at $15,884,000 after acquiring an additional 87,554 shares during the period. Voloridge Investment Management LLC lifted its position in shares of Reddit by 46.3% during the 4th quarter. Voloridge Investment Management LLC now owns 963,516 shares of the company's stock valued at $157,477,000 after acquiring an additional 304,773 shares during the period. FMR LLC lifted its position in shares of Reddit by 7.5% during the 4th quarter. FMR LLC now owns 13,070,780 shares of the company's stock valued at $2,136,288,000 after acquiring an additional 913,189 shares during the period. Finally, Renaissance Capital LLC lifted its position in shares of Reddit by 10.9% during the 1st quarter. Renaissance Capital LLC now owns 34,636 shares of the company's stock valued at $3,633,000 after acquiring an additional 3,400 shares during the period.

Reddit Company Profile

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.

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