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

Reddit Inc. (NYSE:RDDT) has earned a consensus rating of “Moderate Buy” from the twenty-nine analysts that are currently covering the firm, Marketbeat.com reports. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating, fifteen have given a buy rating and two have assigned a strong buy rating to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $230.28.

RDDT has been the subject of several research reports. Truist Financial set a $270.00 price objective on Reddit in a report on Friday, October 31st. Piper Sandler reiterated an “overweight” rating on shares of Reddit in a research note on Monday, December 1st. The Goldman Sachs Group restated a “neutral” rating and issued a $236.00 price objective on shares of Reddit in a research note on Tuesday, October 14th. B. Riley reiterated a “buy” rating and set a $245.00 target price (up previously from $235.00) on shares of Reddit in a research report on Friday, October 31st. Finally, Sanford C. Bernstein boosted their price objective on shares of Reddit from $190.00 to $210.00 and gave the company a “market perform” rating in a research note on Friday, October 31st.

Insiders Place Their Bets

In other news, insider Benjamin Seong Lee sold 18,750 shares of Reddit stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $240.00, for a total value of $4,500,000.00. Following the transaction, the insider owned 62,608 shares in the company, valued at approximately $15,025,920. The trade was a 23.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $234.37, for a total value of $9,179,569.79. Following the sale, the chief operating officer owned 1,184,528 shares of the company’s stock, valued at $277,617,827.36. This represents a 3.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 465,333 shares of company stock valued at $97,652,064 over the last three months. Corporate insiders own 34.25% of the company’s stock.

Institutional Trading of Reddit

Institutional investors and hedge funds have recently bought and sold shares of the stock. Teacher Retirement System of Texas boosted its holdings in shares of Reddit by 880.5% during the 2nd quarter. Teacher Retirement System of Texas now owns 94,676 shares of the company’s stock valued at $14,255,000 after acquiring an additional 85,020 shares during the last quarter. Petrus Trust Company LTA bought a new stake in shares of Reddit in the first quarter worth $473,000. Think Investments LP boosted its position in Reddit by 10.3% in the first quarter. Think Investments LP now owns 268,000 shares of the company’s stock worth $28,113,000 after purchasing an additional 25,000 shares during the last quarter. Sender Co & Partners Inc. purchased a new position in Reddit during the first quarter valued at $1,367,000. Finally, Union Bancaire Privee UBP SA purchased a new position in Reddit in the 2nd quarter worth approximately $2,078,000.

Reddit Stock Performance

NYSE RDDT opened at $253.07 on Wednesday. The company has a market capitalization of $47.96 billion, a PE ratio of 145.44, a price-to-earnings-growth ratio of 1.64 and a beta of 2.17. Reddit has a 52-week low of $79.75 and a 52-week high of $282.95. The company has a 50-day simple moving average of $215.64 and a 200 day simple moving average of $205.42.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, October 30th. The company reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.50 by $0.30. Reddit had a net margin of 18.33% and a return on equity of 14.94%. The firm had revenue of $584.91 million for the quarter, compared to analysts’ expectations of $546.65 million. During the same period in the previous year, the company earned $0.16 earnings per share. The company’s quarterly revenue was up 67.9% on a year-over-year basis. As a group, analysts forecast that Reddit will post 1.12 EPS for the current fiscal year.

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.