Reddit (NYSE:RDDT) Downgraded by Wall Street Zen to Hold

Reddit (NYSE:RDDT) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Saturday.

A number of other research analysts have also weighed in on the stock. China Renaissance assumed coverage on shares of Reddit in a research report on Tuesday, December 9th. They set a “buy” rating and a $300.00 price target on the stock. Wells Fargo & Company set a $196.00 price objective on shares of Reddit in a research report on Monday, February 9th. Evercore restated an “outperform” rating and issued a $290.00 target price on shares of Reddit in a research note on Friday, February 6th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Reddit in a report on Monday, December 29th. Finally, Piper Sandler reaffirmed an “overweight” rating and set a $205.00 price target (down from $290.00) on shares of Reddit in a research report on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $238.78.

Reddit Trading Down 3.2%

NYSE RDDT opened at $139.65 on Friday. The firm has a market capitalization of $26.68 billion, a P/E ratio of 53.30, a PEG ratio of 1.05 and a beta of 2.40. The business has a fifty day simple moving average of $187.51 and a 200 day simple moving average of $208.00. Reddit has a 12 month low of $79.75 and a 12 month high of $282.95.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $725.61 million for the quarter, compared to the consensus estimate of $665.80 million. During the same period in the previous year, the firm earned $0.36 EPS. The business’s revenue for the quarter was up 69.7% compared to the same quarter last year. As a group, sell-side analysts predict that Reddit will post 1.12 EPS for the current fiscal year.

Insider Activity at Reddit

In related news, insider Benjamin Seong Lee sold 5,575 shares of Reddit stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $143.35, for a total value of $799,176.25. Following the sale, the insider owned 79,309 shares of the company’s stock, valued at approximately $11,368,945.15. The trade was a 6.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Michelle Marie Reynolds sold 2,291 shares of the stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $143.59, for a total value of $328,964.69. Following the transaction, the chief accounting officer directly owned 17,133 shares of the company’s stock, valued at approximately $2,460,127.47. This trade represents a 11.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 449,084 shares of company stock worth $93,738,449 over the last 90 days. Corporate insiders own 34.25% of the company’s stock.

Institutional Investors Weigh In On Reddit

Several large investors have recently added to or reduced their stakes in the company. Resona Asset Management Co. Ltd. raised its holdings in shares of Reddit by 53.2% during the 3rd quarter. Resona Asset Management Co. Ltd. now owns 30,944 shares of the company’s stock valued at $7,166,000 after buying an additional 10,743 shares in the last quarter. Vanguard Group Inc. boosted its stake in Reddit by 12.9% in the third quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company’s stock worth $2,814,734,000 after buying an additional 1,401,293 shares in the last quarter. Optimize Financial Inc bought a new position in Reddit during the third quarter valued at approximately $1,420,000. WT Asset Management Ltd bought a new position in Reddit during the third quarter valued at approximately $92,973,000. Finally, Wealth Enhancement Advisory Services LLC raised its stake in shares of Reddit by 95.4% during the third quarter. Wealth Enhancement Advisory Services LLC now owns 16,139 shares of the company’s stock worth $3,712,000 after acquiring an additional 7,881 shares in the last quarter.

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.