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

Wall Street Zen downgraded shares of Reddit (NYSE:RDDT) from a buy rating to a hold rating in a research report sent to investors on Saturday.

Several other research firms have also recently issued reports on RDDT. Piper Sandler reiterated an “overweight” rating and issued a $205.00 target price (down from $290.00) on shares of Reddit in a research note on Friday, February 6th. Needham & Company LLC restated a “buy” rating and set a $300.00 price target on shares of Reddit in a research report on Friday, February 6th. 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 report on Friday, January 30th. Zacks Research downgraded Reddit from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 26th. Finally, Evercore reissued an “outperform” rating and set a $290.00 price objective on shares of Reddit in a research note on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $238.78.

Reddit Stock Down 3.2%

Shares of RDDT opened at $139.65 on Friday. The business’s 50-day moving average price is $187.51 and its 200-day moving average price is $207.86. Reddit has a twelve month low of $79.75 and a twelve month high of $282.95. The stock has a market cap of $26.68 billion, a PE ratio of 53.30, a P/E/G ratio of 1.01 and a beta of 2.40.

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

Insider Transactions at Reddit

In other news, COO Jennifer L. Wong sold 39,167 shares of the firm’s stock in a transaction on Friday, December 19th. The shares were sold at an average price of $234.37, for a total transaction of $9,179,569.79. Following the sale, the chief operating officer owned 1,184,528 shares in the company, valued at approximately $277,617,827.36. This trade represents a 3.20% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CTO Christopher Brian Slowe sold 19,036 shares of Reddit stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $144.05, for a total transaction of $2,742,135.80. Following the sale, the chief technology officer directly owned 185,057 shares of the company’s stock, valued at $26,657,460.85. This represents a 9.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 449,084 shares of company stock worth $93,738,449. Company insiders own 34.25% of the company’s stock.

Institutional Investors Weigh In On Reddit

Several hedge funds have recently added to or reduced their stakes in RDDT. Raiffeisen Bank International AG bought a new position in shares of Reddit during the 3rd quarter valued at about $25,000. GW&K Investment Management LLC bought a new stake in Reddit in the 3rd quarter worth approximately $30,000. Cornerstone Planning Group LLC boosted its stake in Reddit by 13,500.0% in the third quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock worth $31,000 after buying an additional 135 shares in the last quarter. LOM Asset Management Ltd purchased a new stake in Reddit in the fourth quarter worth approximately $33,000. Finally, Noble Wealth Management PBC bought a new position in Reddit during the fourth quarter valued at approximately $34,000.

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.