Reddit (NYSE:RDDT) Upgraded at KeyCorp

Key Points

• KeyCorp upgraded Reddit to “strong buy,” adding to a generally positive analyst outlook. The stock has a consensus “moderate buy” rating and an average price target of $232.23.
• Reddit reported quarterly EPS of $1.01, beating estimates of $0.62, while revenue reached $663.41 million—up 69.1% year over year and above expectations.
• Reddit shares opened at $177.97, with a 52-week range of $119.27 to $282.95 and a market capitalization of approximately $34.26 billion. Insiders have sold 169,141 shares worth about $28.7 million over the past three months.

Reddit (NYSE:RDDT - Get Free Report) was upgraded by research analysts at KeyCorp to a "strong-buy" rating in a report released on Tuesday,Zacks.com reports.

RDDT has been the topic of several other research reports. DA Davidson reiterated a "buy" rating and issued a $200.00 price objective on shares of Reddit in a research note on Thursday, July 23rd. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $200.00 price objective on shares of Reddit in a report on Friday, May 1st. Needham & Company LLC reiterated a "buy" rating and set a $300.00 price objective on shares of Reddit in a research note on Wednesday, June 24th. Rothschild & Co Redburn set a $110.00 price target on Reddit in a research report on Monday, April 27th. Finally, Loop Capital reiterated a "buy" rating and issued a $260.00 target price on shares of Reddit in a research note on Thursday, June 4th. Two investment analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and eleven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $232.23.

Reddit Stock Performance

Reddit stock opened at $177.97 on Tuesday. Reddit has a fifty-two week low of $119.27 and a fifty-two week high of $282.95. The firm's 50-day simple moving average is $176.17 and its 200 day simple moving average is $165.56. The stock has a market cap of $34.26 billion, a PE ratio of 50.85 and a beta of 1.93.

Reddit (NYSE:RDDT - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.39. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The company had revenue of $663.41 million during the quarter, compared to analyst estimates of $607.74 million. During the same period in the prior year, the company posted $0.13 earnings per share. Reddit's quarterly revenue was up 69.1% on a year-over-year basis. As a group, analysts predict that Reddit will post 4.85 EPS for the current fiscal year.

Insider Transactions at Reddit

In other news, CAO Michelle Marie Reynolds sold 808 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total transaction of $161,600.00. Following the transaction, the chief accounting officer directly owned 15,060 shares in the company, valued at approximately $3,012,000. This represents a 5.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 Monday, May 18th. The stock was sold at an average price of $158.52, for a total value of $6,208,752.84. Following the completion of the sale, the chief operating officer owned 1,088,451 shares of the company's stock, valued at $172,541,252.52. The trade was a 3.47% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 169,141 shares of company stock worth $28,680,845. 28.48% of the stock is currently owned by corporate insiders.

Institutional Trading of Reddit

Hedge funds have recently added to or reduced their stakes in the business. LOM Asset Management Ltd bought a new position in shares of Reddit during the fourth quarter valued at about $33,000. Sunbelt Securities Inc. lifted its stake 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 during the last quarter. EverSource Wealth Advisors LLC boosted its holdings in Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company's stock valued at $34,000 after acquiring an additional 64 shares during the period. Beacon Investment Advisory Services Inc. purchased a new stake in Reddit during the 2nd quarter valued at about $35,000. Finally, Summit Securities Group LLC bought a new position in Reddit during the 4th quarter worth approximately $46,000.

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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