Wall Street Zen Upgrades Reddit (NYSE:RDDT) to "Buy"

Reddit (NYSE:RDDT - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Saturday.

RDDT has been the topic of several other research reports. Needham & Company LLC lifted their price objective on Reddit from $135.00 to $145.00 and gave the company a "buy" rating in a report on Friday, May 2nd. Seaport Res Ptn upgraded Reddit from a "hold" rating to a "strong-buy" rating in a report on Monday, May 5th. JPMorgan Chase & Co. cut their price objective on Reddit from $185.00 to $110.00 and set a "neutral" rating on the stock in a report on Tuesday, April 8th. Robert W. Baird cut their price objective on Reddit from $140.00 to $120.00 and set a "neutral" rating on the stock in a report on Wednesday, May 21st. Finally, Truist Financial began coverage on Reddit in a report on Monday, April 7th. They set a "buy" rating and a $150.00 price objective on the stock. One research analyst has rated the stock with a sell rating, nine have issued a hold rating, thirteen have assigned a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $139.35.

Reddit Stock Performance

RDDT traded up $1.85 during midday trading on Friday, reaching $118.05. 6,495,666 shares of the company were exchanged, compared to its average volume of 6,282,498. Reddit has a one year low of $49.13 and a one year high of $230.41. The stock has a market capitalization of $21.78 billion, a P/E ratio of -15.27, a PEG ratio of 4.72 and a beta of 1.99. The stock's 50-day simple moving average is $108.87 and its 200 day simple moving average is $142.80.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, May 1st. The company reported $0.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.02 by $0.11. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. The firm had revenue of $392.36 million for the quarter, compared to analysts' expectations of $370.55 million. During the same quarter last year, the business earned ($8.19) earnings per share. The company's revenue was up 61.5% compared to the same quarter last year. On average, research analysts anticipate that Reddit will post 1.12 earnings per share for the current year.

Insiders Place Their Bets

In other Reddit news, CEO Steve Ladd Huffman sold 14,000 shares of the business's stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $110.05, for a total transaction of $1,540,700.00. Following the transaction, the chief executive officer now owns 560,133 shares of the company's stock, valued at $61,642,636.65. The trade was a 2.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Michelle Marie Reynolds sold 2,729 shares of Reddit stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $98.85, for a total value of $269,761.65. Following the transaction, the chief accounting officer now owns 42,277 shares of the company's stock, valued at $4,179,081.45. This represents a 6.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 553,467 shares of company stock valued at $60,888,391 in the last 90 days. 34.25% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in RDDT. Plato Investment Management Ltd bought a new stake in Reddit in the 4th quarter valued at $27,000. CWM LLC boosted its stake in Reddit by 100.0% in the 1st quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after purchasing an additional 128 shares during the period. EverSource Wealth Advisors LLC bought a new stake in Reddit in the 4th quarter valued at $28,000. Stone House Investment Management LLC bought a new stake in Reddit in the 1st quarter valued at $31,000. Finally, Bogart Wealth LLC bought a new stake in Reddit in the 4th quarter valued at $33,000.

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.