Reddit (NYSE:RDDT) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Key Points

• Wells Fargo raised its price target on Reddit to $187 from $176, while keeping an equal weight rating. The new target still implies about 6.8% downside from the current price.
• Analyst sentiment remains broadly constructive: Reddit has 18 Buy ratings and 12 Hold ratings, with a consensus price target of $231.14. Other firms recently issued targets as high as $300.
• Reddit’s latest quarterly results were strong, with EPS of $1.01 beating estimates and revenue up 69.1% year over year. Despite that, insiders have been selling shares, including CEO Steve Huffman and COO Jennifer Wong.

Reddit (NYSE:RDDT - Get Free Report) had its price objective increased by equities researchers at Wells Fargo & Company from $176.00 to $187.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Wells Fargo & Company's target price would indicate a potential downside of 6.81% from the stock's current price.

Several other equities analysts have also weighed in on the company. Piper Sandler reissued an "overweight" rating and issued a $215.00 target price (up from $205.00) on shares of Reddit in a research note on Friday, May 1st. Truist Financial set a $265.00 price target on Reddit in a research note on Friday, May 1st. Needham & Company LLC reiterated a "buy" rating and issued a $300.00 price target on shares of Reddit in a research report on Wednesday, June 24th. Loop Capital reissued a "buy" rating and set a $260.00 price objective on shares of Reddit in a research note on Thursday, June 4th. Finally, Zacks Research cut shares of Reddit from a "strong-buy" rating to a "hold" rating in a report on Wednesday, June 3rd. Eighteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $231.14.

Reddit Stock Performance

Reddit stock opened at $200.67 on Tuesday. The business's fifty day moving average is $164.92 and its two-hundred day moving average is $171.59. The firm has a market cap of $38.63 billion, a P/E ratio of 55.62 and a beta of 1.93. Reddit has a 52 week low of $119.27 and a 52 week high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The firm had revenue of $663.41 million during the quarter, compared to analysts' expectations of $607.74 million. During the same quarter last year, the company posted $0.13 EPS. The company's quarterly revenue was up 69.1% compared to the same quarter last year. On average, equities research analysts predict that Reddit will post 4.83 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $178.26, for a total value of $3,208,680.00. Following the sale, the chief executive officer owned 373,814 shares of the company's stock, valued at approximately $66,636,083.64. This trade represents a 4.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of the business's stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $161.47, for a total value of $6,324,295.49. Following the completion of the sale, the chief operating officer owned 1,088,451 shares in the company, valued at $175,752,182.97. The trade was a 3.47% decrease in their position. 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 three months, insiders sold 241,808 shares of company stock worth $40,191,725. 28.48% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Reddit

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Sunbelt Securities Inc. grew its holdings in shares of Reddit by 87.5% in the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company's stock valued at $26,000 after acquiring an additional 91 shares in the last quarter. Ascentis Independent Advisors bought a new stake in Reddit during the first quarter worth about $30,000. LOM Asset Management Ltd acquired a new position in Reddit during the fourth quarter valued at approximately $33,000. Noble Wealth Management PBC acquired a new position in Reddit during the fourth quarter valued at approximately $34,000. Finally, Geneos Wealth Management Inc. grew its stake in Reddit by 344.6% in the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after purchasing an additional 286 shares in 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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