Analysts Set Reddit Inc. (NYSE:RDDT) Price Target at $238.78

Reddit Inc. (NYSE:RDDT) has been assigned an average recommendation of “Moderate Buy” from the thirty ratings firms that are covering the company, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, eleven have assigned a hold recommendation, seventeen have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $238.7778.

A number of research analysts have recently commented on the company. Evercore reaffirmed an “outperform” rating and set a $290.00 target price on shares of Reddit in a research note on Friday, February 6th. Jefferies Financial Group boosted their price objective on Reddit from $300.00 to $325.00 and gave the company a “buy” rating in a report on Thursday, December 11th. Truist Financial increased their target price on Reddit from $270.00 to $275.00 and gave the stock a “buy” rating in a research note on Friday, February 6th. The Goldman Sachs Group lowered their target price on shares of Reddit from $236.00 to $206.00 and set a “neutral” rating for the company in a research note on Friday, February 6th. Finally, Piper Sandler reaffirmed an “overweight” rating and issued a $205.00 price target (down previously from $290.00) on shares of Reddit in a research note on Friday, February 6th.

Reddit Stock Down 5.2%

RDDT stock opened at $142.40 on Thursday. Reddit has a twelve month low of $79.75 and a twelve month high of $282.95. The stock has a market capitalization of $27.20 billion, a price-to-earnings ratio of 54.35, a price-to-earnings-growth ratio of 1.12 and a beta of 2.17. The firm’s fifty day simple moving average is $202.35 and its two-hundred day simple moving average is $213.15.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, February 5th. The company reported $1.24 EPS for the quarter, topping analysts’ consensus estimates of $0.96 by $0.28. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The firm had revenue of $725.61 million during the quarter, compared to analysts’ expectations of $665.80 million. During the same period in the previous year, the company earned $0.36 EPS. The firm’s revenue for the quarter was up 69.7% compared to the same quarter last year. As a group, equities research analysts expect that Reddit will post 1.12 EPS for the current year.

Insider Activity at Reddit

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of the firm’s stock in a transaction on Friday, December 19th. The stock was sold at an average price of $234.37, for a total transaction of $9,179,569.79. Following the transaction, the chief operating officer directly owned 1,184,528 shares in the company, valued at $277,617,827.36. This trade represents a 3.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Steve Ladd Huffman sold 18,000 shares of the company’s stock in a transaction on Monday, December 15th. The stock was sold at an average price of $220.28, for a total value of $3,965,040.00. Following the completion of the sale, the chief executive officer owned 448,576 shares of the company’s stock, valued at $98,812,321.28. This represents a 3.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 382,939 shares of company stock valued at $85,501,624. 34.25% of the stock is owned by insiders.

Institutional Trading of Reddit

Several institutional investors and hedge funds have recently made changes to their positions in RDDT. Vanguard Group Inc. increased its position in Reddit by 8.9% during the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock valued at $3,062,339,000 after purchasing an additional 1,083,540 shares during the period. Capital World Investors purchased a new position in Reddit during the fourth quarter valued at approximately $1,293,258,000. State Street Corp raised its stake in Reddit by 6.0% in the fourth 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 in the last quarter. Geode Capital Management LLC lifted its holdings in Reddit by 4.7% during the fourth quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock worth $546,789,000 after buying an additional 106,821 shares during the period. Finally, Morgan Stanley lifted its holdings in Reddit by 11.4% during the fourth quarter. Morgan Stanley now owns 2,372,443 shares of the company’s stock worth $545,354,000 after buying an additional 242,709 shares during the period.

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.