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

Key Points

• Morgan Stanley has raised its target price for Reddit's stock from $170.00 to $230.00, suggesting a potential upside of 42.74% based on the stock's previous close.
• Reddit's stock has experienced a significant 7.9% increase in value recently, reflecting positive investor sentiment.
• In its latest earnings report, Reddit posted a 77.9% year-over-year revenue increase at $499.63 million and exceeded earnings expectations with an EPS of $0.45.

Reddit (NYSE:RDDT - Get Free Report) had its target price raised by equities researchers at Morgan Stanley from $170.00 to $230.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Morgan Stanley's price target suggests a potential upside of 42.74% from the stock's previous close.

A number of other research firms also recently issued reports on RDDT. Piper Sandler raised their price objective on shares of Reddit from $150.00 to $210.00 and gave the stock an "overweight" rating in a report on Friday. B. Riley reaffirmed a "buy" rating and issued a $220.00 price target (down previously from $222.00) on shares of Reddit in a report on Friday, May 2nd. Loop Capital decreased their target price on Reddit from $210.00 to $200.00 and set a "buy" rating for the company in a research report on Thursday, June 12th. Roth Mkm increased their price target on Reddit from $120.00 to $130.00 and gave the stock a "neutral" rating in a research note on Friday, May 2nd. Finally, Truist Financial assumed coverage on shares of Reddit in a report on Monday, April 7th. They set a "buy" rating and a $150.00 price objective on the stock. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating, thirteen have assigned a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $154.83.

Reddit Stock Up 7.9%

Shares of NYSE RDDT opened at $161.13 on Friday. The company has a market capitalization of $29.73 billion, a PE ratio of 273.11, a PEG ratio of 3.81 and a beta of 2.33. The stock's 50 day moving average price is $135.22 and its 200-day moving average price is $138.51. Reddit has a twelve month low of $49.13 and a twelve month high of $230.41.

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

Insider Transactions at Reddit

In other news, CEO Steve Ladd Huffman sold 14,000 shares of the stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $145.63, for a total transaction of $2,038,820.00. Following the transaction, the chief executive officer directly owned 539,631 shares in the company, valued at approximately $78,586,462.53. This represents a 2.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Andrew Vollero sold 30,000 shares of the company's stock in a transaction that occurred on Friday, June 13th. The stock was sold at an average price of $117.64, for a total value of $3,529,200.00. Following the completion of the sale, the chief financial officer directly owned 333,806 shares of the company's stock, valued at approximately $39,268,937.84. This represents a 8.25% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 506,809 shares of company stock worth $61,884,325. 34.25% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in RDDT. CWM LLC lifted its position in Reddit by 100.0% in the first quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after purchasing an additional 128 shares during the last quarter. Stone House Investment Management LLC purchased a new position in shares of Reddit in the first quarter worth $31,000. Financial Perspectives Inc bought a new stake in Reddit during the 2nd quarter valued at $34,000. Geneos Wealth Management Inc. boosted its position in Reddit by 344.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after buying an additional 286 shares during the period. Finally, Canton Hathaway LLC purchased a new stake in Reddit during the 1st quarter valued at $43,000.

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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