Reddit Inc. (NYSE:RDDT) Receives Consensus Rating of “Moderate Buy” from Brokerages

Shares of Reddit Inc. (NYSE:RDDT) have been given an average recommendation of “Moderate Buy” by the twenty-nine brokerages that are presently covering the firm, Marketbeat Ratings reports. Eleven analysts have rated the stock with a hold recommendation, seventeen have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $242.1923.

A number of equities research analysts have issued reports on RDDT shares. Roth Mkm lifted their target price on shares of Reddit from $210.00 to $215.00 and gave the company a “neutral” rating in a research note on Friday, January 30th. 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. Morgan Stanley set a $240.00 price objective on Reddit in a research report on Friday, February 6th. Piper Sandler restated an “overweight” rating and issued a $205.00 target price (down from $290.00) on shares of Reddit in a research note on Friday, February 6th. Finally, Wall Street Zen raised Reddit from a “hold” rating to a “buy” rating in a research report on Sunday, March 15th.

Insiders Place Their Bets

In related news, CTO Christopher Brian Slowe sold 9,500 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $136.55, for a total value of $1,297,225.00. Following the transaction, the chief technology officer owned 183,057 shares in the company, valued at approximately $24,996,433.35. This represents a 4.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $132.86, for a total transaction of $2,391,480.00. Following the transaction, the chief executive officer directly owned 411,195 shares in the company, valued at approximately $54,631,367.70. The trade was a 4.19% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have purchased 61,000 shares of company stock worth $8,870,815 and have sold 359,578 shares worth $67,335,283. 34.25% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Resona Asset Management Co. Ltd. grew its holdings in Reddit by 53.2% during the third quarter. Resona Asset Management Co. Ltd. now owns 30,944 shares of the company’s stock valued at $7,166,000 after purchasing an additional 10,743 shares during the last quarter. Vanguard Group Inc. raised its position in shares of Reddit by 12.9% in the third quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company’s stock valued at $2,814,734,000 after purchasing an additional 1,401,293 shares during the period. Optimize Financial Inc acquired a new stake in shares of Reddit in the third quarter worth $1,420,000. WT Asset Management Ltd acquired a new stake in shares of Reddit in the third quarter worth $92,973,000. Finally, Wealth Enhancement Advisory Services LLC boosted its holdings in shares of Reddit by 95.4% during the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 16,139 shares of the company’s stock worth $3,712,000 after buying an additional 7,881 shares during the period.

Reddit Price Performance

NYSE RDDT opened at $140.18 on Monday. The company has a 50 day simple moving average of $166.67 and a 200-day simple moving average of $202.23. The firm has a market capitalization of $26.78 billion, a price-to-earnings ratio of 53.50, a price-to-earnings-growth ratio of 1.00 and a beta of 2.40. Reddit has a 52-week low of $79.75 and a 52-week high of $282.95.

Reddit (NYSE:RDDT) last announced its quarterly earnings data on Thursday, February 5th. The company reported $1.24 EPS for the quarter, beating 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 the consensus estimate of $665.80 million. The firm’s revenue was up 69.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.36 earnings per share. On average, analysts predict that Reddit will post 1.12 EPS for the current 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.