Reddit (NYSE:RDDT) Upgraded to “Buy” at Wall Street Zen

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

A number of other equities research analysts also recently weighed in on the stock. The Goldman Sachs Group reiterated a “neutral” rating and set a $236.00 price target on shares of Reddit in a research note on Tuesday, October 14th. Piper Sandler reaffirmed an “overweight” rating on shares of Reddit in a report on Monday, December 1st. Truist Financial set a $270.00 target price on shares of Reddit in a research report on Friday, October 31st. Morgan Stanley reissued an “overweight” rating and issued a $250.00 price target on shares of Reddit in a research report on Friday, October 31st. Finally, Cannonball Research restated a “buy” rating on shares of Reddit in a research note on Tuesday, September 23rd. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $230.28.

Reddit Stock Performance

NYSE RDDT opened at $224.38 on Friday. Reddit has a twelve month low of $79.75 and a twelve month high of $282.95. The stock has a market cap of $42.52 billion, a PE ratio of 128.95, a PEG ratio of 2.48 and a beta of 2.17. The firm has a 50-day simple moving average of $206.31 and a 200 day simple moving average of $191.61.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Thursday, October 30th. The company reported $0.80 EPS for the quarter, beating the consensus estimate of $0.50 by $0.30. Reddit had a return on equity of 14.94% and a net margin of 18.33%.The firm had revenue of $584.91 million during the quarter, compared to analysts’ expectations of $546.65 million. During the same quarter in the prior year, the firm posted $0.16 EPS. The company’s revenue for the quarter was up 67.9% on a year-over-year basis. Research analysts forecast that Reddit will post 1.12 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the company’s stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $261.22, for a total transaction of $4,701,960.00. Following the transaction, the chief executive officer owned 494,104 shares in the company, valued at $129,069,846.88. This represents a 3.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CTO Christopher Brian Slowe sold 24,000 shares of the firm’s stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $192.72, for a total transaction of $4,625,280.00. Following the completion of the sale, the chief technology officer owned 175,694 shares of the company’s stock, valued at $33,859,747.68. The trade was a 12.02% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 405,619 shares of company stock valued at $85,742,898. 34.25% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in RDDT. Resona Asset Management Co. Ltd. bought a new stake in Reddit in the first quarter valued at about $2,119,000. Gulf International Bank UK Ltd bought a new stake in Reddit during the 1st quarter worth about $204,000. Fjarde AP Fonden Fourth Swedish National Pension Fund acquired a new position in Reddit during the first quarter valued at approximately $2,046,000. Kovitz Investment Group Partners LLC grew its stake in shares of Reddit by 78.7% in the first quarter. Kovitz Investment Group Partners LLC now owns 2,271 shares of the company’s stock valued at $238,000 after buying an additional 1,000 shares in the last quarter. Finally, American Century Companies Inc. increased its stake in shares of Reddit by 35.0% during the 1st quarter. American Century Companies Inc. now owns 11,523 shares of the company’s stock worth $1,209,000 after purchasing an additional 2,987 shares during the last quarter.

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.