Reddit (NYSE:RDDT) Downgraded by Zacks Research to Hold

Zacks Research cut shares of Reddit (NYSE:RDDT) from a strong-buy rating to a hold rating in a research report released on Tuesday,Zacks.com reports.

RDDT has been the topic of a number of other reports. JPMorgan Chase & Co. dropped their price objective on shares of Reddit from $200.00 to $185.00 and set a “neutral” rating on the stock in a report on Friday, July 31st. Robert W. Baird set a $185.00 target price on Reddit in a report on Friday, July 31st. Loop Capital reiterated a “buy” rating and set a $260.00 target price on shares of Reddit in a report on Thursday, June 4th. Morgan Stanley dropped their price target on Reddit from $240.00 to $210.00 and set an “overweight” rating on the stock in a research note on Friday, August 21st. Finally, Citigroup restated a “market outperform” rating on shares of Reddit in a report on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $221.10.

Reddit Stock Performance

Shares of RDDT stock opened at $155.34 on Tuesday. The company has a market capitalization of $29.89 billion, a P/E ratio of 36.13, a price-to-earnings-growth ratio of 0.54 and a beta of 2.03. The company’s 50 day moving average price is $172.64 and its two-hundred day moving average price is $158.33. Reddit has a 52 week low of $119.27 and a 52 week high of $282.95.

Reddit (NYSE:RDDT) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.95 by $0.30. The firm had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The business’s revenue was up 61.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.45 earnings per share. Analysts forecast that Reddit will post 5.27 earnings per share for the current year.

Insider Buying and Selling

In related news, COO Jennifer L. Wong sold 75,000 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $178.55, for a total transaction of $13,391,250.00. Following the completion of the transaction, the chief operating officer owned 1,050,339 shares in the company, valued at approximately $187,538,028.45. This represents a 6.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Marie Reynolds sold 808 shares of the firm’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $200.00, for a total transaction of $161,600.00. Following the completion of the transaction, the chief accounting officer directly owned 15,060 shares of the company’s stock, valued at approximately $3,012,000. This trade represents a 5.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 204,974 shares of company stock worth $36,025,162. 28.48% of the stock is owned by insiders.

Hedge Funds Weigh In On Reddit

Several hedge funds have recently modified their holdings of RDDT. Sunbelt Securities Inc. increased its position in shares of Reddit by 87.5% in the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock valued at $26,000 after acquiring an additional 91 shares during the last quarter. Ascentis Independent Advisors acquired a new position in Reddit during the first quarter valued at approximately $30,000. EverSource Wealth Advisors LLC boosted its position in Reddit by 48.1% during the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after purchasing an additional 64 shares during the last quarter. Beacon Investment Advisory Services Inc. bought a new position in Reddit in the second quarter valued at approximately $35,000. Finally, Geneos Wealth Management Inc. grew its stake in Reddit by 344.6% in the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock valued at $39,000 after purchasing an additional 286 shares in the last quarter.

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.