DA Davidson Reaffirms Buy Rating for Reddit (NYSE:RDDT)

Reddit (NYSE:RDDT)‘s stock had its “buy” rating reiterated by equities research analysts at DA Davidson in a research note issued to investors on Thursday,Benzinga reports. They presently have a $200.00 price target on the stock. DA Davidson’s target price points to a potential upside of 15.38% from the stock’s previous close.

A number of other equities analysts have also weighed in on RDDT. Cantor Fitzgerald reissued a “neutral” rating and set a $200.00 price objective on shares of Reddit in a research note on Monday. Citizens Jmp reduced their price target on Reddit from $250.00 to $240.00 and set a “market outperform” rating on the stock in a report on Friday, May 1st. Weiss Ratings reissued a “hold (c)” rating on shares of Reddit in a research report on Friday, May 8th. Wall Street Zen lowered shares of Reddit from a “buy” rating to a “hold” rating in a report on Sunday, May 10th. Finally, Rothschild & Co Redburn set a $110.00 price objective on shares of Reddit in a research report on Monday, April 27th. Nineteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, Reddit has an average rating of “Moderate Buy” and an average price target of $232.48.

Reddit Stock Up 1.7%

RDDT traded up $2.96 during trading on Thursday, reaching $173.34. The company’s stock had a trading volume of 2,432,548 shares, compared to its average volume of 5,087,623. The firm has a fifty day simple moving average of $174.21 and a two-hundred day simple moving average of $168.20. Reddit has a 1 year low of $119.27 and a 1 year high of $282.95. The company has a market cap of $33.37 billion, a price-to-earnings ratio of 49.57 and a beta of 1.93.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.62 by $0.39. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The business had revenue of $663.41 million during the quarter, compared to analyst estimates of $607.74 million. During the same period in the prior year, the business earned $0.13 earnings per share. The business’s revenue was up 69.1% compared to the same quarter last year. As a group, equities analysts forecast that Reddit will post 4.85 EPS for the current fiscal year.

Insider Buying and Selling at Reddit

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $173.13, for a total transaction of $3,116,340.00. Following the completion of the sale, the chief executive officer directly owned 373,814 shares of the company’s stock, valued at approximately $64,718,417.82. This trade represents a 4.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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 business’s stock in a transaction dated 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 sale, the chief accounting officer owned 15,060 shares in the company, valued at approximately $3,012,000. This trade represents a 5.09% 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. Insiders have sold 169,141 shares of company stock worth $28,680,845 over the last quarter. 28.48% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Sunbelt Securities Inc. increased its position in shares of Reddit by 87.5% during 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 shares of Reddit in the 1st quarter worth approximately $30,000. LOM Asset Management Ltd purchased a new position in shares of Reddit during the 4th quarter worth approximately $33,000. Beacon Investment Advisory Services Inc. acquired a new stake in Reddit in the 2nd quarter valued at approximately $35,000. Finally, Geneos Wealth Management Inc. increased its holdings in Reddit by 344.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock valued at $39,000 after purchasing an additional 286 shares during the last quarter.

Key Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Some analysts still see meaningful upside in Reddit shares, with recent price targets above current levels suggesting the market may be overreacting to the Google headline risk.
• Neutral Sentiment: Reddit is set to report second-quarter results on July 30, which is keeping traders focused on the company’s growth, traffic, and monetization trends ahead of the print. Article Title
• Neutral Sentiment: One market view is that the recent pullback could create an attractive entry point if Reddit can preserve its licensing economics and show continued user growth.
• Negative Sentiment: Reports that Reddit may block or reconsider Google’s access to its content have revived concerns that AI-generated answers could reduce referral traffic to Reddit, pressuring advertising revenue. Article Title
• Negative Sentiment: The stock also fell more than the broader market in the latest session, with momentum weakening after it slipped below key moving averages, signaling traders are becoming more cautious. Article Title

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.