Reddit (NYSE:RDDT) Stock Rating Upgraded by Cantor Fitzgerald

Key Points

• Cantor Fitzgerald upgraded Reddit to a "hold," but the analyst consensus remains a Moderate Buy with an average price target of $230.65.
• Reddit posted a strong quarter (EPS $0.80 vs. $0.50 estimate; revenue $584.9M vs. $546.7M estimate), with revenue up 67.9% year-over-year and healthy margins.
• Several insiders have been selling sizable stakes — COO Jennifer Wong sold 39,167 shares (~$9.18M) and CTO Chris Slowe sold 14,000 shares (~$3.27M), contributing to quarter insider sales of roughly $99.9M.

Reddit (NYSE:RDDT - Get Free Report) was upgraded by equities researchers at Cantor Fitzgerald to a "hold" rating in a report released on Thursday,Zacks.com reports.

Other research analysts have also recently issued reports about the company. Wells Fargo & Company lifted their price target on Reddit from $155.00 to $174.00 and gave the company a "cautious" rating in a research report on Tuesday, October 7th. Cannonball Research reaffirmed a "buy" rating on shares of Reddit in a research note on Tuesday, September 23rd. Citigroup lifted their target price on shares of Reddit from $250.00 to $265.00 and gave the company a "buy" rating in a report on Monday, November 3rd. China Renaissance started coverage on shares of Reddit in a research note on Tuesday, December 9th. They issued a "buy" rating and a $300.00 target price for the company. Finally, B. Riley restated a "buy" rating and set a $245.00 price target (up previously from $235.00) on shares of Reddit in a research report on Friday, October 31st. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $230.65.

Reddit Price Performance

NYSE RDDT opened at $253.87 on Thursday. Reddit has a 1 year low of $79.75 and a 1 year high of $282.95. The company has a market capitalization of $48.11 billion, a PE ratio of 145.90, a P/E/G ratio of 1.72 and a beta of 2.17. The company has a fifty day moving average of $217.70 and a 200 day moving average of $206.10.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings results on Thursday, October 30th. The company reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.30. The company had revenue of $584.91 million for the quarter, compared to the consensus estimate of $546.65 million. Reddit had a return on equity of 14.94% and a net margin of 18.33%.The firm's revenue for the quarter was up 67.9% compared to the same quarter last year. During the same period last year, the firm earned $0.16 EPS. Research analysts expect that Reddit will post 1.12 earnings per share for the current year.

Insiders Place Their Bets

In related news, COO Jennifer L. Wong sold 39,167 shares of the business's stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $234.37, for a total transaction of $9,179,569.79. Following the completion of the sale, the chief operating officer directly owned 1,184,528 shares in the company, valued at approximately $277,617,827.36. The trade was a 3.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Christopher Brian Slowe sold 14,000 shares of the stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $233.53, for a total transaction of $3,269,420.00. Following the completion of the sale, the chief technology officer owned 171,694 shares of the company's stock, valued at $40,095,699.82. This trade represents a 7.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 474,246 shares of company stock valued at $99,908,227. 34.25% of the stock is owned by company insiders.

Institutional Investors Weigh In On Reddit

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Fulton Bank N.A. increased its position in Reddit by 6.0% during the fourth quarter. Fulton Bank N.A. now owns 1,493 shares of the company's stock worth $343,000 after purchasing an additional 85 shares during the last quarter. Wealth Enhancement Advisory Services LLC raised its holdings in shares of Reddit by 10.0% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 17,760 shares of the company's stock valued at $4,508,000 after buying an additional 1,621 shares during the period. Nordea Investment Management AB lifted its position in shares of Reddit by 4.3% during the fourth quarter. Nordea Investment Management AB now owns 1,151,360 shares of the company's stock worth $265,273,000 after purchasing an additional 47,187 shares in the last quarter. Permanent Capital Management LP lifted its holdings in Reddit by 6.2% during the 4th quarter. Permanent Capital Management LP now owns 2,390 shares of the company's stock worth $549,000 after buying an additional 140 shares in the last quarter. Finally, TrueWealth Advisors LLC purchased a new position in Reddit in the fourth quarter valued at $542,000.

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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