Reddit (NYSE:RDDT) Shares Down 6.2% Following Analyst Downgrade

Reddit Inc. (NYSE:RDDT)’s stock price was down 6.2% during trading on Thursday after Wall Street Zen downgraded the stock from a buy rating to a hold rating. The stock traded as low as $137.01 and last traded at $136.0070. Approximately 733,459 shares traded hands during mid-day trading, a decline of 86% from the average daily volume of 5,343,888 shares. The stock had previously closed at $145.00.

Several other equities research analysts have also issued reports on RDDT. Evercore reaffirmed an “outperform” rating and set a $290.00 price target on shares of Reddit in a report on Friday, February 6th. Robert W. Baird set a $200.00 price target on shares of Reddit in a report on Friday, February 6th. Bank of America decreased their price target on shares of Reddit from $205.00 to $175.00 and set a “neutral” rating on the stock in a report on Thursday, April 2nd. UBS Group set a $265.00 price target on shares of Reddit in a report on Tuesday, January 13th. Finally, Truist Financial decreased their price target on shares of Reddit from $275.00 to $260.00 and set a “buy” rating on the stock in a report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, Reddit presently has an average rating of “Moderate Buy” and an average price target of $238.46.

Insider Activity at Reddit

In related news, Director Sarah E. Farrell purchased 10,500 shares of the firm’s stock in a transaction that occurred on Friday, March 13th. The shares were bought at an average cost of $132.26 per share, with a total value of $1,388,730.00. Following the acquisition, the director owned 61,000 shares of the company’s stock, valued at $8,067,860. This trade represents a 20.79% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CTO Christopher Brian Slowe sold 9,500 shares of the business’s stock in a transaction that occurred on Monday, March 23rd. The stock was sold at an average price of $141.28, for a total transaction of $1,342,160.00. Following the sale, the chief technology officer directly owned 38,413 shares in the company, valued at $5,426,988.64. The trade was a 19.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders purchased 61,000 shares of company stock valued at $8,870,815 and sold 300,615 shares valued at $49,627,551. 34.25% of the stock is owned by insiders.

Institutional Investors Weigh In On Reddit

A number of institutional investors have recently added to or reduced their stakes in RDDT. NewEdge Advisors LLC grew its holdings in Reddit by 143.3% during the 1st quarter. NewEdge Advisors LLC now owns 7,982 shares of the company’s stock worth $837,000 after acquiring an additional 4,701 shares during the last quarter. Empowered Funds LLC bought a new stake in Reddit during the 1st quarter worth approximately $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Reddit by 106.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company’s stock worth $22,759,000 after acquiring an additional 111,780 shares during the last quarter. Focus Partners Wealth grew its holdings in Reddit by 40.8% during the 1st quarter. Focus Partners Wealth now owns 10,224 shares of the company’s stock worth $1,073,000 after acquiring an additional 2,965 shares during the last quarter. Finally, Geneos Wealth Management Inc. grew its holdings in Reddit by 344.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock worth $39,000 after acquiring an additional 286 shares during the last quarter.

Reddit Stock Performance

The stock has a market capitalization of $26.44 billion, a P/E ratio of 52.83, a price-to-earnings-growth ratio of 1.05 and a beta of 2.40. The stock’s fifty day simple moving average is $142.41 and its two-hundred day simple moving average is $191.14.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, topping analysts’ consensus estimates 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 analyst estimates of $665.80 million. During the same period in the previous year, the firm posted $0.36 EPS. The company’s revenue for the quarter was up 69.7% compared to the same quarter last year. As a group, analysts expect that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

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.