Reddit (NYSE:RDDT) Upgraded to Strong-Buy at Zacks Research

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

RDDT has been the topic of several other research reports. JPMorgan Chase & Co. reduced their target price on shares of Reddit from $227.00 to $200.00 and set a “neutral” rating on the stock in a report on Friday, February 6th. Raymond James Financial set a $180.00 target price on shares of Reddit and gave the company a “market perform” rating in a report on Friday, May 1st. Wells Fargo & Company raised their target price on shares of Reddit from $149.00 to $176.00 and gave the company an “equal weight” rating in a report on Friday, May 1st. Bank of America reduced their target price 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. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $300.00 target price on shares of Reddit in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $228.61.

Reddit Stock Performance

Shares of RDDT opened at $165.54 on Tuesday. The company’s 50-day simple moving average is $145.02 and its 200-day simple moving average is $183.65. The stock has a market capitalization of $31.63 billion, a PE ratio of 47.30, a P/E/G ratio of 1.18 and a beta of 1.85. Reddit has a 1 year low of $94.89 and a 1 year high of $282.95.

Reddit (NYSE:RDDT) last issued its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.39. The firm had revenue of $663.41 million for the quarter, compared to analysts’ expectations of $607.74 million. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The firm’s revenue was up 69.1% compared to the same quarter last year. During the same quarter last year, the company earned $0.13 earnings per share. On average, sell-side analysts predict that Reddit will post 4.26 earnings per share for the current year.

Insider Activity at Reddit

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $158.40, for a total transaction of $2,851,200.00. Following the sale, the chief executive officer owned 411,195 shares of the company’s stock, valued at approximately $65,133,288. This trade represents a 4.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of the firm’s stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the sale, the chief operating officer directly owned 1,088,451 shares in the company, valued at approximately $175,752,182.97. The trade was a 3.47% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders purchased 61,000 shares of company stock worth $8,870,815 and sold 280,441 shares worth $40,873,759. 34.25% of the stock is owned by corporate insiders.

Institutional Trading of Reddit

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RDDT. Resona Asset Management Co. Ltd. raised its stake in shares of Reddit by 53.2% during the 3rd quarter. Resona Asset Management Co. Ltd. now owns 30,944 shares of the company’s stock worth $7,166,000 after buying an additional 10,743 shares during the last quarter. Vanguard Group Inc. raised its stake in Reddit by 12.9% in the 3rd 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 last quarter. Optimize Financial Inc acquired a new position in Reddit in the 3rd quarter valued at about $1,420,000. WT Asset Management Ltd acquired a new position in Reddit in the 3rd quarter valued at about $92,973,000. Finally, Wealth Enhancement Advisory Services LLC raised its stake in Reddit by 95.4% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 16,139 shares of the company’s stock valued at $3,712,000 after purchasing an additional 7,881 shares during the last quarter.

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.