Reddit, Inc. (NYSE:RDDT) Receives Average Rating of “Moderate Buy” from Analysts

Reddit, Inc. (NYSE:RDDT) has earned a consensus recommendation of “Moderate Buy” from the twenty-three analysts that are presently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, eight have given a hold rating, twelve have issued a buy rating and two have assigned a strong buy rating to the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $141.36.

A number of research firms have recently commented on RDDT. Redburn Partners set a $75.00 price target on shares of Reddit in a research report on Monday, March 17th. Piper Sandler reiterated an “overweight” rating and set a $150.00 target price (up from $140.00) on shares of Reddit in a research note on Friday, May 2nd. Citigroup raised their price target on shares of Reddit from $150.00 to $158.00 and gave the stock a “buy” rating in a research report on Friday, May 2nd. Robert W. Baird set a $140.00 target price on shares of Reddit in a research note on Monday, May 5th. Finally, Sanford C. Bernstein upgraded Reddit from an “underperform” rating to a “market perform” rating and set a $130.00 price objective for the company in a research report on Friday, May 2nd.

Reddit Price Performance

NYSE RDDT opened at $108.04 on Tuesday. The firm has a market capitalization of $19.94 billion, a price-to-earnings ratio of -13.98, a price-to-earnings-growth ratio of 4.72 and a beta of 2.90. The company has a 50 day simple moving average of $108.94 and a 200-day simple moving average of $145.87. Reddit has a 52-week low of $49.13 and a 52-week high of $230.41.

Reddit (NYSE:RDDT) last posted its quarterly 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. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%. The business had revenue of $392.36 million for the quarter, compared to analysts’ expectations of $370.55 million. During the same period in the previous year, the company posted ($8.19) EPS. Reddit’s revenue was up 61.5% on a year-over-year basis. On average, analysts predict that Reddit will post 1.12 EPS for the current year.

Insider Activity at Reddit

In related news, CEO Steve Ladd Huffman sold 124,408 shares of the stock in a transaction dated Friday, March 14th. The stock was sold at an average price of $127.36, for a total transaction of $15,844,602.88. Following the completion of the transaction, the chief executive officer now directly owns 583,515 shares in the company, valued at approximately $74,316,470.40. This trade represents a 17.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Mary Porter Gale sold 20,000 shares of the stock in a transaction dated Friday, February 21st. The stock was sold at an average price of $169.71, for a total transaction of $3,394,200.00. Following the transaction, the director now owns 26,309 shares of the company’s stock, valued at approximately $4,464,900.39. This represents a 43.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 802,345 shares of company stock worth $101,207,606.

Hedge Funds Weigh In On Reddit

Institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its stake in Reddit by 184.2% in the fourth quarter. Vanguard Group Inc. now owns 9,181,390 shares of the company’s stock valued at $1,500,606,000 after purchasing an additional 5,950,909 shares in the last quarter. Jennison Associates LLC bought a new position in shares of Reddit in the 4th quarter valued at $494,861,000. Alliancebernstein L.P. lifted its position in shares of Reddit by 103.0% during the 1st quarter. Alliancebernstein L.P. now owns 5,659,990 shares of the company’s stock worth $593,733,000 after buying an additional 2,871,232 shares during the last quarter. Brooklyn FI LLC acquired a new stake in Reddit in the fourth quarter valued at about $303,082,000. Finally, GQG Partners LLC acquired a new position in Reddit during the fourth quarter worth about $271,539,000.

About Reddit

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.