Reddit (NYSE:RDDT) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Reddit from a "hold" to a "buy," and MarketBeat data shows an average analyst rating of Moderate Buy with an average price target of $236.00.
• Reddit beat quarterly expectations with EPS of $1.24 versus $0.96 estimated and revenue of $725.6M (up 69.7% year-over-year), reporting a 24.05% net margin and 20.89% return on equity.
• Company insiders, including CEO Steve Huffman and COO Jennifer Wong, recently sold shares; insiders sold 433,335 shares (~$89.1M) last quarter while still owning 34.25% of the stock.

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

Several other equities analysts also recently issued reports on the stock. Weiss Ratings reissued a "hold (c-)" rating on shares of Reddit in a research note on Monday, December 29th. Argus set a $300.00 price target on Reddit in a report on Friday, January 9th. The Goldman Sachs Group reduced their price target on Reddit from $236.00 to $206.00 and set a "neutral" rating on the stock in a research note on Friday, February 6th. Evercore restated an "outperform" rating and set a $290.00 price objective on shares of Reddit in a report on Friday, February 6th. Finally, Guggenheim upped their target price on Reddit from $245.00 to $255.00 and gave the company a "buy" rating in a research note on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $236.00.

Reddit Trading Down 0.0%

Reddit stock opened at $132.21 on Friday. The stock has a 50-day moving average price of $177.60 and a 200 day moving average price of $204.92. Reddit has a 52 week low of $79.75 and a 52 week high of $282.95. The stock has a market cap of $25.26 billion, a PE ratio of 50.46, a P/E/G ratio of 0.96 and a beta of 2.40.

Reddit (NYSE:RDDT - Get Free Report) last released its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.96 by $0.28. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The company had revenue of $725.61 million for the quarter, compared to analyst estimates of $665.80 million. During the same period in the prior year, the firm earned $0.36 EPS. The firm's quarterly revenue was up 69.7% on a year-over-year basis. On average, equities analysts predict that Reddit will post 1.12 EPS for the current year.

Insider Buying and Selling at Reddit

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction on Friday, February 27th. The stock was sold at an average price of $145.12, for a total value of $2,612,160.00. Following the transaction, the chief executive officer directly owned 411,195 shares of the company's stock, valued at approximately $59,672,618.40. This trade represents a 4.19% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Jennifer L. Wong sold 30,777 shares of Reddit stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $143.42, for a total value of $4,414,037.34. Following the completion of the transaction, the chief operating officer owned 1,088,451 shares in the company, valued at $156,105,642.42. The trade was a 2.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 433,335 shares of company stock worth $89,139,359. 34.25% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Reddit

Several hedge funds and other institutional investors have recently modified their holdings of the company. NewEdge Advisors LLC raised its holdings in Reddit by 143.3% in the first quarter. NewEdge Advisors LLC now owns 7,982 shares of the company's stock valued at $837,000 after buying an additional 4,701 shares during the period. Empowered Funds LLC purchased a new stake in Reddit during the first quarter worth approximately $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Reddit by 106.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company's stock worth $22,759,000 after acquiring an additional 111,780 shares in the last quarter. Focus Partners Wealth increased its position in shares of Reddit by 40.8% in the first quarter. Focus Partners Wealth now owns 10,224 shares of the company's stock worth $1,073,000 after acquiring an additional 2,965 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its stake in shares of Reddit by 344.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after acquiring an additional 286 shares during the period.

Reddit Company Profile

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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