Wall Street Zen Upgrades Reddit (NYSE:RDDT) to “Buy”

Reddit (NYSE:RDDT) was upgraded by research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report released on Sunday.

Several other brokerages also recently weighed in on RDDT. Argus set a $300.00 price target on shares of Reddit in a report on Friday, January 9th. UBS Group set a $265.00 price objective on shares of Reddit in a report on Tuesday, January 13th. Roth Mkm upped their price target on shares of Reddit from $210.00 to $215.00 and gave the stock a “neutral” rating in a research report on Friday, January 30th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Reddit in a report on Monday, December 29th. Finally, China Renaissance began coverage on Reddit in a research report on Tuesday, December 9th. They issued a “buy” rating and a $300.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $242.19.

Reddit Stock Performance

NYSE:RDDT opened at $139.91 on Friday. The firm has a 50-day simple moving average of $175.52 and a 200-day simple moving average of $204.27. The firm has a market cap of $26.73 billion, a P/E ratio of 53.40, a P/E/G ratio of 0.96 and a beta of 2.41. Reddit has a one year low of $79.75 and a one year high of $282.95.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.96 by $0.28. Reddit had a return on equity of 20.89% and a net margin of 24.05%.The business had revenue of $725.61 million for the quarter, compared to analysts’ expectations of $665.80 million. During the same quarter last year, the firm earned $0.36 EPS. The business’s revenue for the quarter was up 69.7% on a year-over-year basis. On average, research analysts predict that Reddit will post 1.12 EPS for the current fiscal year.

Insider Buying and Selling

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the company’s stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $145.12, for a total value of $2,612,160.00. Following the transaction, the chief executive officer owned 411,195 shares of the company’s stock, valued at $59,672,618.40. This represents a 4.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CTO Christopher Brian Slowe sold 9,500 shares of the company’s stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $136.55, for a total transaction of $1,297,225.00. Following the completion of the transaction, the chief technology officer owned 183,057 shares in the company, valued at approximately $24,996,433.35. This represents a 4.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 360,330 shares of company stock valued at $73,006,663. 34.25% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Reddit

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

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.