Reddit Inc. (NYSE:RDDT) Given Average Rating of “Moderate Buy” by Brokerages

Shares of Reddit Inc. (NYSE:RDDT) have been assigned a consensus recommendation of “Moderate Buy” from the thirty-one research firms that are presently covering the company, MarketBeat.com reports. Ten equities research analysts have rated the stock with a hold recommendation, eighteen have given a buy recommendation and three have given a strong buy recommendation to the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $221.7097.

RDDT has been the topic of several research reports. Evercore reissued an “outperform” rating and issued a $265.00 price target on shares of Reddit in a research note on Friday, July 31st. DA Davidson restated a “buy” rating and set a $200.00 price target on shares of Reddit in a research report on Thursday, July 23rd. Telsey Advisory Group set a $240.00 price objective on shares of Reddit in a research note on Friday, July 31st. Truist Financial increased their price objective on shares of Reddit from $265.00 to $275.00 and gave the company a “buy” rating in a report on Friday, July 31st. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Reddit in a research note on Wednesday, August 5th.

Reddit Stock Performance

NYSE RDDT opened at $164.64 on Thursday. The business has a fifty day moving average price of $175.18 and a 200 day moving average price of $159.22. The company has a market cap of $31.68 billion, a P/E ratio of 38.29, a P/E/G ratio of 0.60 and a beta of 2.04. Reddit has a one year low of $119.27 and a one year high of $282.95.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The company had revenue of $804.91 million for the quarter, compared to analysts’ expectations of $731.00 million. During the same quarter in the previous year, the company posted $0.45 EPS. The firm’s quarterly revenue was up 61.0% on a year-over-year basis. As a group, sell-side analysts predict that Reddit will post 5.22 EPS for the current fiscal year.

Insider Activity

In related news, COO Jennifer L. Wong sold 39,166 shares of Reddit stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $176.94, for a total transaction of $6,930,032.04. Following the transaction, the chief operating officer owned 1,050,339 shares in the company, valued at approximately $185,846,982.66. This trade represents a 3.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 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 on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the transaction, the chief accounting officer directly owned 15,060 shares in the company, valued at $3,012,000. This trade represents a 5.09% decrease in their position. 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 sold 111,974 shares of company stock worth $19,427,032 over the last ninety days. Corporate insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in shares of Reddit by 8.9% during the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock valued at $3,062,339,000 after acquiring an additional 1,083,540 shares during the last quarter. Capital World Investors acquired a new stake in Reddit during the fourth quarter worth about $1,293,258,000. State Street Corp increased its position in Reddit by 6.0% during the fourth quarter. State Street Corp now owns 2,631,332 shares of the company’s stock worth $604,864,000 after purchasing an additional 149,401 shares during the last quarter. Geode Capital Management LLC raised its stake in Reddit by 4.7% during the fourth quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock worth $546,789,000 after purchasing an additional 106,821 shares during the period. Finally, Morgan Stanley raised its stake in Reddit by 11.4% during the fourth quarter. Morgan Stanley now owns 2,372,443 shares of the company’s stock worth $545,354,000 after purchasing an additional 242,709 shares during the period.

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.