Reddit (NYSE:RDDT) Stock Rating Lowered by Wall Street Zen

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

A number of other research analysts have also recently commented on the company. Wells Fargo & Company set a $196.00 target price on Reddit in a research note on Monday, February 9th. Zacks Research cut Reddit from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 26th. B. Riley Financial increased their price objective on Reddit from $245.00 to $250.00 and gave the stock a “buy” rating in a report on Friday, February 6th. Roth Mkm raised their price objective on Reddit from $210.00 to $215.00 and gave the company a “neutral” rating in a research report on Friday, January 30th. Finally, The Goldman Sachs Group dropped their target price on shares of Reddit from $236.00 to $206.00 and set a “neutral” rating on the stock in a report on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $238.78.

Reddit Price Performance

RDDT stock opened at $139.65 on Friday. Reddit has a 1 year low of $79.75 and a 1 year high of $282.95. The company has a market cap of $26.68 billion, a P/E ratio of 53.30, a PEG ratio of 1.01 and a beta of 2.41. The firm has a 50-day moving average of $187.51 and a 200 day moving average of $207.79.

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 return on equity of 20.89% and a net margin of 24.05%.The business had revenue of $725.61 million for the quarter, compared to analysts’ expectations of $665.80 million. During the same period in the previous year, the firm posted $0.36 EPS. The business’s revenue was up 69.7% on a year-over-year basis. On average, equities research analysts expect that Reddit will post 1.12 earnings per share for the current fiscal year.

Insider Transactions at Reddit

In related news, COO Jennifer L. Wong sold 39,167 shares of the company’s stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $234.37, for a total value of $9,179,569.79. Following the transaction, the chief operating officer owned 1,184,528 shares in the company, valued at $277,617,827.36. The trade was a 3.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $220.28, for a total transaction of $3,965,040.00. Following the sale, the chief executive officer directly owned 448,576 shares in the company, valued at $98,812,321.28. This trade represents a 3.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 435,084 shares of company stock worth $90,462,589 over the last quarter. Corporate insiders own 34.25% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in RDDT. Raiffeisen Bank International AG bought a new stake in shares of Reddit during the third quarter valued at approximately $25,000. GW&K Investment Management LLC purchased a new stake in Reddit during the 3rd quarter valued at $30,000. Cornerstone Planning Group LLC increased its holdings 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 purchasing an additional 135 shares in the last quarter. LOM Asset Management Ltd bought a new stake in shares of Reddit in the 4th quarter worth $33,000. Finally, Noble Wealth Management PBC purchased a new position in shares of Reddit in the fourth quarter worth $34,000.

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.