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

Reddit (NYSE:RDDT) was upgraded by analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report released on Saturday.

A number of other analysts have also issued reports on the company. Seaport Res Ptn upgraded Reddit from a “hold” rating to a “strong-buy” rating in a report on Monday, May 5th. Wells Fargo & Company set a $115.00 price target on Reddit and gave the company an “equal weight” rating in a report on Monday, May 19th. Guggenheim lowered their price target on Reddit from $170.00 to $165.00 and set a “buy” rating on the stock in a report on Friday, May 2nd. Truist Financial initiated coverage on Reddit in a report on Monday, April 7th. They set a “buy” rating and a $150.00 price target on the stock. Finally, Royal Bank of Canada began coverage on Reddit in a research note on Tuesday, June 3rd. They issued a “sector perform” rating and a $125.00 target price on the stock. One analyst has rated the stock with a sell rating, nine have given a hold rating, thirteen have given a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $139.35.

Reddit Price Performance

Shares of NYSE:RDDT opened at $118.05 on Friday. Reddit has a 12 month low of $49.13 and a 12 month high of $230.41. The stock has a market cap of $21.78 billion, a price-to-earnings ratio of -15.27, a PEG ratio of 4.72 and a beta of 1.99. The stock’s 50 day moving average price is $108.87 and its 200 day moving average price is $142.82.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Thursday, May 1st. The company reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.11. The firm had revenue of $392.36 million for the quarter, compared to analyst estimates of $370.55 million. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%. The firm’s quarterly revenue was up 61.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($8.19) earnings per share. On average, sell-side analysts expect that Reddit will post 1.12 EPS for the current year.

Insider Buying and Selling at Reddit

In other news, COO Jennifer L. Wong sold 33,334 shares of the company’s stock in a transaction that occurred on Wednesday, April 16th. The stock was sold at an average price of $93.99, for a total value of $3,133,062.66. Following the sale, the chief operating officer now directly owns 1,466,119 shares in the company, valued at approximately $137,800,524.81. This represents a 2.22% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Steve Ladd Huffman sold 14,000 shares of the company’s stock in a transaction that occurred on Friday, May 30th. The shares were sold at an average price of $110.05, for a total value of $1,540,700.00. Following the completion of the sale, the chief executive officer now owns 560,133 shares in the company, valued at approximately $61,642,636.65. This represents a 2.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 520,134 shares of company stock valued at $56,714,433 in the last quarter. Corporate insiders own 34.25% of the company’s stock.

Institutional Investors Weigh In On Reddit

Several large investors have recently modified their holdings of RDDT. Vanguard Group Inc. grew its stake in shares of Reddit by 184.2% in the 4th 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 during the period. Alliancebernstein L.P. grew its stake in shares of Reddit by 103.0% in the 1st quarter. Alliancebernstein L.P. now owns 5,659,990 shares of the company’s stock valued at $593,733,000 after purchasing an additional 2,871,232 shares during the period. Brooklyn FI LLC bought a new stake in shares of Reddit in the 4th quarter valued at approximately $303,082,000. GQG Partners LLC bought a new stake in Reddit during the 4th quarter worth approximately $271,539,000. Finally, Whale Rock Capital Management LLC bought a new stake in Reddit during the 4th quarter worth approximately $204,054,000.

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.