Reddit (NYSE:RDDT) Lowered to Hold Rating by Wall Street Zen

Wall Street Zen cut shares of Reddit (NYSE:RDDT) from a buy rating to a hold rating in a research note released on Sunday morning.

A number of other equities analysts have also recently weighed in on the company. Zacks Research raised Reddit from a “hold” rating to a “strong-buy” rating in a report on Monday, July 27th. Guggenheim reaffirmed a “buy” rating on shares of Reddit in a research note on Friday, July 31st. Roth Capital reiterated a “neutral” rating and set a $145.00 price objective on shares of Reddit in a research report on Monday, August 3rd. Wedbush cut their target price on shares of Reddit from $250.00 to $221.00 and set an “outperform” rating for the company in a research note on Friday, July 31st. Finally, Evercore restated an “outperform” rating and issued a $265.00 target price on shares of Reddit in a report on Friday, July 31st. Two investment analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $220.90.

Reddit Price Performance

Shares of Reddit stock opened at $161.73 on Friday. Reddit has a 1 year low of $119.27 and a 1 year high of $282.95. The company has a market capitalization of $31.12 billion, a P/E ratio of 37.61, a P/E/G ratio of 0.54 and a beta of 2.04. The business has a 50 day moving average price of $176.68 and a 200 day moving average price of $161.41.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) 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 return on equity of 29.02% and a net margin of 31.35%.Reddit’s revenue was up 61.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.45 EPS. As a group, research analysts expect that Reddit will post 5.22 EPS for the current fiscal year.

Insider Buying and Selling at Reddit

In other news, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $159.78, for a total value of $2,876,040.00. Following the transaction, the chief executive officer directly owned 373,814 shares of the company’s stock, valued at $59,728,000.92. The trade was a 4.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,166 shares of Reddit stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $176.94, for a total value of $6,930,032.04. Following the completion of the transaction, the chief operating officer directly owned 1,050,339 shares in the company, valued at $185,846,982.66. This represents a 3.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 169,141 shares of company stock valued at $28,464,485. Company insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Sunbelt Securities Inc. grew its stake in Reddit by 87.5% during the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after buying an additional 91 shares during the period. Ascentis Independent Advisors acquired a new stake in shares of Reddit in the first quarter worth $30,000. LOM Asset Management Ltd purchased a new position in shares of Reddit in the 4th quarter valued at $33,000. EverSource Wealth Advisors LLC raised its stake in shares of Reddit by 48.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after acquiring an additional 64 shares during the period. Finally, Beacon Investment Advisory Services Inc. acquired a new position in shares of Reddit during the 2nd quarter valued at $35,000.

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.