Reddit's (RDDT) "Sector Perform" Rating Reiterated at Royal Bank Of Canada

Key Points

• Royal Bank of Canada has reiterated a "sector perform" rating for Reddit (RDDT), with a price target of $210.00, indicating a potential downside of 3.27% from its current price.
• Reddit's stock has attracted mixed ratings from analysts, with two rating it a Strong Buy, thirteen a Buy, and nine a Hold.
• The company reported a significant earnings surprise in its last quarter, with earnings per share of $0.45, exceeding estimates and showing a revenue increase of 77.9% compared to the previous year.

Reddit (NYSE:RDDT - Get Free Report)'s stock had its "sector perform" rating reaffirmed by research analysts at Royal Bank Of Canada in a note issued to investors on Friday,Benzinga reports. They presently have a $210.00 price objective on the stock. Royal Bank Of Canada's price target points to a potential downside of 3.27% from the company's current price.

Other equities analysts have also issued reports about the stock. Guggenheim raised their target price on shares of Reddit from $165.00 to $215.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Wall Street Zen upgraded shares of Reddit from a "hold" rating to a "buy" rating in a research report on Saturday, June 14th. Morgan Stanley raised their target price on shares of Reddit from $170.00 to $230.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Robert W. Baird increased their price target on Reddit from $120.00 to $151.00 and gave the stock a "neutral" rating in a report on Tuesday, July 8th. Finally, Raymond James Financial reaffirmed a "strong-buy" rating and set a $225.00 price target (up from $175.00) on shares of Reddit in a report on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $175.38.

Reddit Stock Down 0.7%

Shares of Reddit stock opened at $217.1010 on Friday. The firm has a market capitalization of $40.63 billion, a P/E ratio of 195.56, a P/E/G ratio of 3.46 and a beta of 2.30. The firm's 50 day moving average is $167.83 and its two-hundred day moving average is $142.16. Reddit has a 52 week low of $55.02 and a 52 week high of $253.14.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.20 by $0.25. The business had revenue of $499.63 million for the quarter, compared to analyst estimates of $424.07 million. Reddit had a net margin of 12.97% and a return on equity of 9.93%. The company's revenue for the quarter was up 77.9% compared to the same quarter last year. During the same period last year, the firm posted ($0.06) earnings per share. Reddit has set its Q3 2025 guidance at EPS. As a group, research analysts expect that Reddit will post 1.12 earnings per share for the current fiscal year.

Insider Transactions at Reddit

In other news, CTO Christopher Brian Slowe sold 16,000 shares of the firm's stock in a transaction on Tuesday, July 22nd. The stock was sold at an average price of $145.58, for a total value of $2,329,280.00. Following the completion of the transaction, the chief technology officer owned 241,373 shares in the company, valued at $35,139,081.34. This trade represents a 6.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Steve Ladd Huffman sold 124,409 shares of the firm's stock in a transaction on Monday, June 16th. The shares were sold at an average price of $124.45, for a total value of $15,482,700.05. Following the completion of the transaction, the chief executive officer owned 546,133 shares of the company's stock, valued at approximately $67,966,251.85. This represents a 18.55% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 363,364 shares of company stock worth $53,557,742. Corporate insiders own 34.25% of the company's stock.

Institutional Trading of Reddit

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Resona Asset Management Co. Ltd. grew its holdings in Reddit by 0.3% in the 2nd quarter. Resona Asset Management Co. Ltd. now owns 20,201 shares of the company's stock valued at $3,023,000 after buying an additional 65 shares during the period. Congress Park Capital LLC grew its holdings in Reddit by 2.0% in the 2nd quarter. Congress Park Capital LLC now owns 3,885 shares of the company's stock valued at $585,000 after buying an additional 76 shares during the period. Bienville Capital Management LLC grew its holdings in Reddit by 0.5% in the 2nd quarter. Bienville Capital Management LLC now owns 16,153 shares of the company's stock valued at $2,432,000 after buying an additional 76 shares during the period. Platinum Investment Management Ltd. grew its holdings in Reddit by 4.3% in the 2nd quarter. Platinum Investment Management Ltd. now owns 2,322 shares of the company's stock valued at $350,000 after buying an additional 95 shares during the period. Finally, Signaturefd LLC grew its holdings in Reddit by 3.5% in the 1st quarter. Signaturefd LLC now owns 2,859 shares of the company's stock valued at $300,000 after buying an additional 97 shares during the period.

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.

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