Reddit (NYSE:RDDT) Lowered to Hold Rating by Zacks Research

Zacks Research lowered shares of Reddit (NYSE:RDDT) from a strong-buy rating to a hold rating in a research note issued to investors on Wednesday,Zacks.com reports.

Several other brokerages have also commented on RDDT. Needham & Company LLC reissued a “buy” rating and issued a $300.00 price objective on shares of Reddit in a report on Friday, May 1st. Raymond James Financial set a $180.00 price objective on Reddit and gave the company a “market perform” rating in a report on Friday, May 1st. Piper Sandler reissued an “overweight” rating and issued a $215.00 price objective (up from $205.00) on shares of Reddit in a report on Friday, May 1st. Loop Capital reissued a “buy” rating and issued a $260.00 price objective on shares of Reddit in a report on Thursday. Finally, Robert W. Baird set a $200.00 price objective on Reddit in a report on Friday, February 6th. Eighteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, Reddit presently has a consensus rating of “Moderate Buy” and an average target price of $230.75.

Reddit Stock Up 8.3%

Reddit stock opened at $183.50 on Wednesday. The firm has a market cap of $35.33 billion, a price-to-earnings ratio of 52.43 and a beta of 1.91. Reddit has a 52 week low of $110.85 and a 52 week high of $282.95. The business’s 50-day moving average price is $152.45 and its 200 day moving average price is $177.39.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, April 30th. The company reported $1.01 EPS for the quarter, topping the consensus estimate of $0.62 by $0.39. The firm had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.Reddit’s revenue for the quarter was up 69.1% compared to the same quarter last year. During the same period last year, the company earned $0.13 earnings per share. Equities analysts expect that Reddit will post 4.83 EPS for the current year.

Insider Activity

In other news, 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 value of $6,324,295.49. Following the transaction, the chief operating officer owned 1,088,451 shares in the company, valued at $175,752,182.97. This trade represents a 3.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Christopher Brian Slowe sold 15,500 shares of the firm’s stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $150.67, for a total value of $2,335,385.00. Following the completion of the transaction, the chief technology officer owned 38,413 shares in the company, valued at approximately $5,787,686.71. This trade represents a 28.75% 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. Insiders have sold a total of 259,999 shares of company stock worth $39,812,508 over the last quarter. 28.48% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Reddit

Several hedge funds and other institutional investors have recently made changes to their positions in RDDT. Raiffeisen Bank International AG purchased a new position in shares of Reddit in the third quarter valued at approximately $25,000. Sunbelt Securities Inc. lifted 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 in the last quarter. GW&K Investment Management LLC purchased a new position in shares of Reddit in the third quarter valued at approximately $30,000. Ascentis Independent Advisors purchased a new position in shares of Reddit in the first quarter valued at approximately $30,000. Finally, Cornerstone Planning Group LLC lifted its position in shares of Reddit by 13,500.0% in the third quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock valued at $31,000 after acquiring an additional 135 shares in 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.