Reddit (NYSE:RDDT) Stock Rating Lowered by Zacks Research

Reddit (NYSE:RDDT) was downgraded by research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Wednesday,Zacks.com reports.

Other research analysts also recently issued research reports about the company. Oppenheimer restated an “outperform” rating and issued a $225.00 target price on shares of Reddit in a research note on Friday, May 1st. Evercore restated an “outperform” rating and issued a $290.00 target price on shares of Reddit in a research note on Friday, February 6th. DA Davidson restated a “buy” rating and issued a $200.00 target price on shares of Reddit in a research note on Friday, May 1st. Wells Fargo & Company raised their target price on Reddit from $149.00 to $176.00 and gave the stock an “equal weight” rating in a research note on Friday, May 1st. Finally, Bank of America cut their target price on Reddit from $205.00 to $175.00 and set a “neutral” rating for the company in a research note on Thursday, April 2nd. Eighteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $230.75.

Reddit Stock Up 8.3%

Shares of NYSE RDDT opened at $183.50 on Wednesday. Reddit has a 52 week low of $110.85 and a 52 week high of $282.95. The business has a 50-day simple moving average of $152.45 and a two-hundred day simple moving average of $177.39. The company has a market cap of $35.33 billion, a P/E ratio of 52.43 and a beta of 1.91.

Reddit (NYSE:RDDT) last issued its earnings results on Thursday, April 30th. The company reported $1.01 EPS for the quarter, topping the consensus estimate 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 the consensus estimate of $607.74 million. During the same quarter last year, the company earned $0.13 EPS. The firm’s revenue was up 69.1% compared to the same quarter last year. Equities research analysts anticipate that Reddit will post 4.83 EPS for the current year.

Insider Activity

In other news, COO Jennifer L. Wong sold 39,167 shares of Reddit stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the completion of the sale, the chief operating officer owned 1,088,451 shares in the company, valued at approximately $172,541,252.52. This trade represents a 3.47% decrease in their position. The sale was disclosed in a legal 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, CTO Christopher Brian Slowe sold 15,500 shares of Reddit stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $150.67, for a total value of $2,335,385.00. Following the sale, the chief technology officer owned 38,413 shares of the company’s stock, valued at approximately $5,787,686.71. This trade represents a 28.75% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 259,999 shares of company stock worth $39,812,508. 28.48% of the stock is currently owned by insiders.

Institutional Trading of Reddit

Hedge funds have recently bought and sold shares of the company. Raiffeisen Bank International AG bought a new stake in Reddit in the 3rd quarter worth approximately $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 lifted its position in Reddit by 13,500.0% in the 3rd quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock worth $31,000 after buying an additional 135 shares during the last quarter. LOM Asset Management Ltd bought a new stake in Reddit in the 4th quarter worth approximately $33,000. Finally, Noble Wealth Management PBC bought a new stake in Reddit in the 4th quarter worth approximately $34,000.

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.