Citigroup Forecasts Strong Price Appreciation for Reddit (NYSE:RDDT) Stock

Reddit (NYSE:RDDT) had its target price upped by Citigroup from $150.00 to $158.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Citigroup’s price target would indicate a potential upside of 39.81% from the stock’s current price.

Several other research firms also recently weighed in on RDDT. B. Riley reissued a “buy” rating and issued a $220.00 target price (down previously from $222.00) on shares of Reddit in a research report on Friday. Morgan Stanley decreased their target price on Reddit from $210.00 to $140.00 and set an “overweight” rating for the company in a research report on Thursday, April 17th. Raymond James reduced their price objective on Reddit from $250.00 to $200.00 and set a “strong-buy” rating on the stock in a research note on Wednesday, March 12th. Oppenheimer began coverage on shares of Reddit in a report on Wednesday, April 16th. They set an “outperform” rating and a $125.00 target price on the stock. Finally, Guggenheim decreased their price target on shares of Reddit from $170.00 to $165.00 and set a “buy” rating for the company in a report on Friday. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, Reddit presently has an average rating of “Moderate Buy” and an average price target of $142.30.

Reddit Stock Performance

NYSE:RDDT opened at $113.01 on Friday. The stock has a market cap of $20.44 billion, a price-to-earnings ratio of -14.62, a price-to-earnings-growth ratio of 4.72 and a beta of 2.89. Reddit has a one year low of $46.75 and a one year high of $230.41. The business’s 50-day simple moving average is $116.82 and its 200 day simple moving average is $143.67.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, May 1st. The company reported $0.13 EPS for the quarter, beating the consensus estimate of $0.02 by $0.11. The company had revenue of $392.36 million during the quarter, compared to analysts’ expectations of $370.55 million. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. The business’s revenue was up 61.5% on a year-over-year basis. During the same period in the prior year, the business posted ($8.19) EPS. On average, equities research analysts predict that Reddit will post 1.12 EPS for the current year.

Insider Activity

In related news, Director David C. Habiger purchased 774 shares of Reddit stock in a transaction on Wednesday, March 12th. The stock was bought at an average price of $130.36 per share, with a total value of $100,898.64. Following the completion of the transaction, the director now directly owns 30,808 shares of the company’s stock, valued at approximately $4,016,130.88. This represents a 2.58 % increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Benjamin Seong Lee sold 92,299 shares of Reddit stock in a transaction on Tuesday, March 4th. The stock was sold at an average price of $157.35, for a total transaction of $14,523,247.65. Following the completion of the transaction, the insider now owns 115,001 shares in the company, valued at $18,095,407.35. This trade represents a 44.52 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 711,270 shares of company stock worth $94,239,985.

Institutional Investors Weigh In On Reddit

Institutional investors have recently added to or reduced their stakes in the company. FMR LLC boosted its holdings in Reddit by 7.5% during the fourth quarter. FMR LLC now owns 13,070,780 shares of the company’s stock valued at $2,136,288,000 after purchasing an additional 913,189 shares in the last quarter. Vanguard Group Inc. raised its stake in shares of Reddit by 184.2% in the fourth quarter. Vanguard Group Inc. now owns 9,181,390 shares of the company’s stock worth $1,500,606,000 after acquiring an additional 5,950,909 shares during the last quarter. Jennison Associates LLC acquired a new stake in shares of Reddit in the 4th quarter valued at $494,861,000. Alliancebernstein L.P. raised its holdings in Reddit by 1,011.1% during the 4th quarter. Alliancebernstein L.P. now owns 2,788,758 shares of the company’s stock worth $455,795,000 after purchasing an additional 2,537,768 shares during the last quarter. Finally, Lord Abbett & CO. LLC lifted its holdings in Reddit by 12.8% in the fourth quarter. Lord Abbett & CO. LLC now owns 1,861,998 shares of the company’s stock valued at $304,325,000 after buying an additional 211,636 shares during the period.

Reddit Company Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.