Reddit (NYSE:RDDT) Rating Lowered to “Hold” at Wall Street Zen

Reddit (NYSE:RDDT) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Monday.

Other research analysts have also recently issued research reports about the company. Piper Sandler reissued an “overweight” rating and issued a $205.00 target price (down from $290.00) on shares of Reddit in a research note on Friday, February 6th. Argus set a $300.00 price target on Reddit in a research note on Friday, January 9th. Jefferies Financial Group cut their price objective on Reddit from $285.00 to $250.00 and set a “buy” rating for the company in a report on Tuesday, March 10th. China Renaissance began coverage on Reddit in a research report on Tuesday, December 9th. They set a “buy” rating and a $300.00 price objective on the stock. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Reddit in a report on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat.com, Reddit presently has an average rating of “Moderate Buy” and an average target price of $242.19.

Reddit Price Performance

RDDT stock opened at $136.01 on Monday. The firm has a 50 day simple moving average of $162.15 and a two-hundred day simple moving average of $200.58. The stock has a market cap of $25.98 billion, a PE ratio of 51.91, a P/E/G ratio of 1.03 and a beta of 2.40. Reddit has a one year low of $79.75 and a one year 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 for the quarter, beating the consensus estimate 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 analysts’ expectations of $665.80 million. During the same quarter last year, the company posted $0.36 EPS. The business’s quarterly revenue was up 69.7% on a year-over-year basis. On average, research analysts expect that Reddit will post 1.12 EPS for the current fiscal year.

Insider Activity at Reddit

In other Reddit news, Director Sarah E. Farrell purchased 43,800 shares of the stock in a transaction on Tuesday, February 10th. The stock was acquired at an average price of $149.52 per share, with a total value of $6,548,976.00. Following the transaction, the director directly owned 43,800 shares of the company’s stock, valued at approximately $6,548,976. This trade represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, COO Jennifer L. Wong sold 33,507 shares of the company’s stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $143.41, for a total value of $4,805,238.87. Following the transaction, the chief operating officer directly owned 1,088,451 shares of the company’s stock, valued at $156,094,757.91. The trade was a 2.99% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have bought 61,000 shares of company stock worth $8,870,815 and have sold 345,578 shares worth $64,065,863. 34.25% of the stock is currently owned by company insiders.

Institutional Trading of Reddit

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Capital World Investors purchased a new position in Reddit during the 4th quarter valued at $1,293,258,000. Norges Bank purchased a new stake in shares of Reddit in the 2nd quarter worth about $294,254,000. Vanguard Group Inc. boosted its stake in shares of Reddit by 12.9% during the 3rd quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company’s stock valued at $2,814,734,000 after purchasing an additional 1,401,293 shares in the last quarter. Amundi increased its position in shares of Reddit by 2,060.5% during the second quarter. Amundi now owns 1,307,231 shares of the company’s stock valued at $208,294,000 after buying an additional 1,246,725 shares during the period. Finally, Invesco Ltd. increased its position in shares of Reddit by 419.0% during the third quarter. Invesco Ltd. now owns 1,487,941 shares of the company’s stock valued at $342,212,000 after buying an additional 1,201,237 shares during the period.

Reddit Company Profile

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.