Reddit (NYSE:RDDT) Downgraded to “Hold” Rating by Zacks Research

Reddit (NYSE:RDDT) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Wednesday,Zacks.com reports.

A number of other research firms have also commented on RDDT. DA Davidson reaffirmed a “buy” rating and set a $200.00 price target on shares of Reddit in a research report on Friday, May 1st. Needham & Company LLC reiterated a “buy” rating and set a $300.00 target price on shares of Reddit in a report on Friday, May 1st. Citizens Jmp reduced their target price on Reddit from $250.00 to $240.00 and set a “market outperform” rating on the stock in a report on Friday, May 1st. Raymond James Financial set a $180.00 target price on Reddit and gave the stock a “market perform” rating in a report on Friday, May 1st. Finally, Cantor Fitzgerald upped their target price on Reddit from $170.00 to $180.00 and gave the stock a “neutral” rating in a report on Friday, May 1st. Eighteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $230.75.

Reddit Price Performance

RDDT opened at $183.50 on Wednesday. The business has a 50 day simple moving average of $152.45 and a two-hundred day simple moving average of $177.39. The firm has a market capitalization of $35.33 billion, a price-to-earnings ratio of 52.43 and a beta of 1.91. Reddit has a one year low of $110.85 and a one year high of $282.95.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, April 30th. The company reported $1.01 EPS for the quarter, beating analysts’ consensus estimates of $0.62 by $0.39. The business had revenue of $663.41 million during the quarter, compared to analyst estimates of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.Reddit’s quarterly revenue was up 69.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.13 EPS. As a group, sell-side analysts expect that Reddit will post 4.83 EPS for the current fiscal year.

Insider Buying and Selling at Reddit

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the sale, the chief operating officer directly owned 1,088,451 shares in the company, valued at approximately $172,541,252.52. This trade represents a 3.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Christopher Brian Slowe sold 15,500 shares of the stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $150.67, for a total value of $2,335,385.00. Following the sale, the chief technology officer owned 38,413 shares in the company, valued at approximately $5,787,686.71. This represents a 28.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 259,999 shares of company stock worth $39,812,508. Insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

Several institutional investors have recently added to or reduced their stakes in the business. Raiffeisen Bank International AG bought a new position in shares of Reddit during the 3rd quarter valued at $25,000. Sunbelt Securities Inc. boosted 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 worth $26,000 after buying an additional 91 shares during the last quarter. GW&K Investment Management LLC purchased a new position in shares of Reddit in the 3rd quarter worth $30,000. Ascentis Independent Advisors purchased a new position in shares of Reddit in the 1st quarter worth $30,000. Finally, Cornerstone Planning Group LLC boosted its stake in shares of Reddit by 13,500.0% in the 3rd quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock worth $31,000 after buying an additional 135 shares during 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.