Reddit Inc. (NYSE:RDDT) Stock Now Rated “Moderate Buy” by Sell-Side Analysts

Shares of Reddit Inc. (NYSE:RDDT) have received a consensus rating of “Moderate Buy” from the twenty-nine analysts that are covering the stock, MarketBeat.com reports. Ten analysts have rated the stock with a hold recommendation, seventeen have given a buy recommendation and two have issued a strong buy recommendation on the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $219.29.

Several equities research analysts recently weighed in on RDDT shares. Wedbush cut their price objective on shares of Reddit from $250.00 to $221.00 and set an “outperform” rating for the company in a research report on Friday, July 31st. UBS Group reissued a “buy” rating on shares of Reddit in a report on Friday, July 31st. Morgan Stanley cut their target price on shares of Reddit from $240.00 to $210.00 and set an “overweight” rating on the stock in a research report on Friday, August 21st. Guggenheim reaffirmed a “buy” rating on shares of Reddit in a report on Wednesday, September 16th. Finally, Cantor Fitzgerald lowered their price objective on Reddit from $200.00 to $170.00 and set a “neutral” rating for the company in a research report on Friday, July 31st.

Insiders Place Their Bets

In related news, COO Jennifer L. Wong sold 75,000 shares of Reddit stock in a transaction on Friday, August 14th. The shares were sold at an average price of $178.55, for a total transaction of $13,391,250.00. Following the completion of the transaction, the chief operating officer owned 1,050,339 shares of the company’s stock, valued at $187,538,028.45. This trade represents a 6.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Huffman sold 18,000 shares of the business’s stock in a transaction on Friday, August 14th. The shares were sold at an average price of $178.16, for a total transaction of $3,206,880.00. Following the completion of the transaction, the chief executive officer owned 373,814 shares in the company, valued at approximately $66,598,702.24. The trade was a 4.59% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 228,744 shares of company stock worth $37,976,994. 28.48% of the stock is currently owned by insiders.

Institutional Trading of Reddit

A number of large investors have recently bought and sold shares of RDDT. 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 purchasing an additional 91 shares during the period. EverSource Wealth Advisors LLC grew its stake in Reddit by 48.1% during the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after purchasing an additional 64 shares during the period. Beacon Investment Advisory Services Inc. acquired a new stake in Reddit during the second quarter worth approximately $35,000. Ascentis Independent Advisors bought a new stake in Reddit in the first quarter worth approximately $30,000. Finally, Rothschild Investment LLC increased its holdings in Reddit by 163.1% in the fourth quarter. Rothschild Investment LLC now owns 271 shares of the company’s stock worth $62,000 after purchasing an additional 168 shares in the last quarter.

Reddit Stock Performance

RDDT opened at $148.80 on Friday. Reddit has a fifty-two week low of $119.27 and a fifty-two week high of $263.50. The stock has a fifty day moving average of $154.87 and a 200-day moving average of $160.39. The company has a market capitalization of $28.63 billion, a P/E ratio of 34.61, a P/E/G ratio of 0.70 and a beta of 2.05.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.95 by $0.30. The firm had revenue of $804.91 million during the quarter, compared to the consensus estimate of $731.00 million. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The business’s revenue for the quarter was up 61.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.45 EPS. On average, equities research analysts predict that Reddit will post 5.27 earnings per share for the current fiscal year.

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and experiences. Registered users can submit posts, images, videos and links, while other users can comment, vote on content and engage in discussions. The platform comprises thousands of independently moderated communities, commonly known as subreddits.

Reddit generates revenue primarily through digital advertising and other commercial offerings for businesses.