Reddit (NYSE:RDDT) Stock Moved Up to “Strong-Buy” by Zacks Research

Reddit (NYSE:RDDT) was upgraded by stock analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a report issued on Tuesday, Zacks reports.

Several other equities research analysts have also commented on RDDT. Piper Sandler reiterated an “overweight” rating and issued a $195.00 price objective (down from $215.00) on shares of Reddit in a research note on Friday, July 31st. Jefferies Financial Group set a $250.00 price target on shares of Reddit in a research report on Friday, July 10th. Wedbush lowered their price objective on shares of Reddit from $250.00 to $221.00 and set an “outperform” rating on the stock in a research report on Friday, July 31st. UBS Group restated a “buy” rating on shares of Reddit in a research note on Friday, July 31st. Finally, DA Davidson dropped their price target on Reddit from $200.00 to $185.00 and set a “buy” rating on the stock in a research report on Friday, September 18th. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $219.29.

Reddit Price Performance

NYSE RDDT opened at $134.72 on Tuesday. The stock has a market capitalization of $25.92 billion, a P/E ratio of 31.33, a P/E/G ratio of 0.67 and a beta of 2.05. The business has a 50 day simple moving average of $151.97 and a 200 day simple moving average of $161.59. Reddit has a one year low of $119.27 and a one year high of $263.50.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, beating 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 firm had revenue of $804.91 million during the quarter, compared to the consensus estimate of $731.00 million. During the same period in the previous year, the firm posted $0.45 earnings per share. The business’s revenue was up 61.0% compared to the same quarter last year. Equities analysts expect that Reddit will post 5.27 earnings per share for the current year.

Insider Buying and Selling

In other Reddit news, Director Robert A. Sauerberg sold 5,128 shares of the company’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total value of $820,069.76. Following the completion of the transaction, the director directly owned 27,087 shares in the company, valued at approximately $4,331,753.04. This represents a 15.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Steve Huffman sold 18,000 shares of Reddit stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $178.16, for a total value of $3,206,880.00. Following the sale, the chief executive officer owned 373,814 shares in the company, valued at $66,598,702.24. This represents a 4.59% decrease in their ownership of the stock. 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. Over the last three months, insiders have sold 306,052 shares of company stock worth $49,754,523. Insiders own 28.48% of the company’s stock.

Hedge Funds Weigh In On Reddit

Institutional investors and hedge funds have recently made changes to their positions in the business. Profund Advisors LLC purchased a new stake in shares of Reddit in the 3rd quarter worth approximately $1,353,000. ProShare Advisors LLC purchased a new stake in shares of Reddit in the third quarter worth $3,880,000. Vise Technologies Inc. increased its holdings in shares of Reddit by 16.3% during the third quarter. Vise Technologies Inc. now owns 3,073 shares of the company’s stock valued at $438,000 after acquiring an additional 430 shares in the last quarter. MGO One Seven LLC increased its holdings in shares of Reddit by 13.6% during the third quarter. MGO One Seven LLC now owns 2,933 shares of the company’s stock valued at $418,000 after acquiring an additional 351 shares in the last quarter. Finally, Kurv Investment Management LLC raised its position in shares of Reddit by 25.9% in the 3rd quarter. Kurv Investment Management LLC now owns 12,642 shares of the company’s stock worth $1,801,000 after purchasing an additional 2,597 shares during the last quarter.

Key Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Analysts expect Reddit to extend its record of quarterly earnings beats since its initial public offering. Strong advertising growth, artificial-intelligence initiatives and the potential for another revenue beat could help revive investor confidence. Reddit Q3 Earnings Preview
• Positive Sentiment: Truist Financial reiterated a Buy rating, indicating that the firm sees potential in Reddit’s advertising business and longer-term growth opportunities. Truist Buy Rating
• Neutral Sentiment: Reddit introduced a “For You” feed alongside its “Following” feed, adopting a recommendation-based format popularized by TikTok. The change could improve user engagement and ad inventory, although its financial impact is not yet clear. Reddit Introduces For You Feed
• Negative Sentiment: Recent selling reflects fears of slower growth ahead of the earnings release. Investors are likely to focus on user trends, advertising momentum and management’s outlook to determine whether Reddit’s valuation can be sustained. Reddit Slower-Growth Fears
• Negative Sentiment: Despite strong prior profitability and revenue growth, analysts caution that Reddit’s premium valuation, rising costs and nearly 40% recent decline leave limited room for an earnings or guidance disappointment. Reddit Q3 Buy Sell or Hold Analysis

Reddit Company Profile

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and activities. Members can submit text posts, links, images and videos, as well as comment on and vote on content. The platform includes thousands of communities, commonly known as subreddits, covering subjects such as news, entertainment, technology, sports, finance and lifestyle.

Reddit generates revenue primarily through digital advertising, offering advertisers access to audiences based on community interests and user engagement.