The Goldman Sachs Group Issues Pessimistic Forecast for Reddit (NYSE:RDDT) Stock Price

Key Points

• Goldman Sachs cut its price target on Reddit from $206 to $180 and kept a "neutral" rating, a target that implies roughly a 15.95% upside from the prior close.
• Despite an earnings beat (Q: $1.24 EPS vs. $0.96 estimate; revenue $725.6M, +69.7% YoY), Reddit trades around $155, below its 200‑day moving average and the analyst consensus price target of $237.46.

Reddit (NYSE:RDDT - Get Free Report) had its price objective cut by analysts at The Goldman Sachs Group from $206.00 to $180.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm presently has a "neutral" rating on the stock. The Goldman Sachs Group's price target suggests a potential upside of 15.95% from the company's previous close.

RDDT has been the topic of a number of other reports. Morgan Stanley set a $240.00 target price on Reddit in a report on Friday, February 6th. Truist Financial cut their target price on Reddit from $275.00 to $260.00 and set a "buy" rating on the stock in a report on Tuesday, April 7th. Argus set a $300.00 target price on Reddit in a report on Friday, January 9th. B. Riley Financial upped their price target on Reddit from $245.00 to $250.00 and gave the stock a "buy" rating in a report on Friday, February 6th. Finally, Wall Street Zen downgraded Reddit from a "buy" rating to a "hold" rating in a report on Wednesday, April 8th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eleven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Reddit has a consensus rating of "Moderate Buy" and a consensus price target of $237.46.

Reddit Trading Up 3.9%

RDDT stock traded up $5.89 during mid-day trading on Tuesday, reaching $155.24. The company's stock had a trading volume of 2,345,113 shares, compared to its average volume of 5,315,131. The company has a market cap of $29.66 billion, a price-to-earnings ratio of 59.26, a price-to-earnings-growth ratio of 1.02 and a beta of 2.40. The business's 50 day moving average price is $141.06 and its 200 day moving average price is $189.09. Reddit has a 12 month low of $90.78 and a 12 month high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, topping analysts' consensus estimates of $0.96 by $0.28. Reddit had a return on equity of 20.89% and a net margin of 24.05%.The business had revenue of $725.61 million during the quarter, compared to the consensus estimate of $665.80 million. During the same period in the previous year, the company posted $0.36 earnings per share. The firm's revenue for the quarter was up 69.7% on a year-over-year basis. As a group, equities analysts expect that Reddit will post 1.12 EPS for the current fiscal year.

Insiders Place Their Bets

In other Reddit news, CTO Christopher Brian Slowe sold 19,036 shares of the business's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $144.05, for a total value of $2,742,135.80. Following the transaction, the chief technology officer owned 185,057 shares of the company's stock, valued at approximately $26,657,460.85. The trade was a 9.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Steve Ladd Huffman sold 18,000 shares of the business's stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $232.78, for a total value of $4,190,040.00. Following the completion of the transaction, the chief executive officer directly owned 448,576 shares in the company, valued at approximately $104,419,521.28. This represents a 3.86% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders acquired 61,000 shares of company stock worth $8,870,815 and sold 312,441 shares worth $51,003,250. Insiders own 34.25% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Purpose Unlimited Inc. purchased a new position in Reddit in the fourth quarter worth $383,000. Rockefeller Capital Management L.P. boosted its position in Reddit by 3.0% in the fourth quarter. Rockefeller Capital Management L.P. now owns 11,697 shares of the company's stock worth $2,689,000 after purchasing an additional 340 shares during the last quarter. World Investment Advisors boosted its position in Reddit by 37.4% in the fourth quarter. World Investment Advisors now owns 2,533 shares of the company's stock worth $582,000 after purchasing an additional 689 shares during the last quarter. Corient Private Wealth LLC boosted its position in Reddit by 58.5% in the fourth quarter. Corient Private Wealth LLC now owns 8,491 shares of the company's stock worth $1,949,000 after purchasing an additional 3,134 shares during the last quarter. Finally, SHP Wealth Management purchased a new position in Reddit in the fourth quarter worth $78,000.

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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