Reddit (NYSE:RDDT) Shares Down 6.2% on Analyst Downgrade

Reddit Inc. (NYSE:RDDT) shares were down 6.2% on Thursday after Wall Street Zen downgraded the stock from a buy rating to a hold rating. The stock traded as low as $137.01 and last traded at $136.0070. Approximately 733,459 shares traded hands during trading, a decline of 86% from the average daily volume of 5,343,888 shares. The stock had previously closed at $145.00.

Several other research analysts have also weighed in on RDDT. Cantor Fitzgerald lowered their target price on shares of Reddit from $240.00 to $170.00 and set a “neutral” rating on the stock in a research report on Friday, February 6th. Guggenheim increased their price target on shares of Reddit from $245.00 to $255.00 and gave the company a “buy” rating in a research report on Friday, February 6th. Zacks Research lowered shares of Reddit from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 26th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Reddit in a research report on Monday, December 29th. Finally, Wells Fargo & Company assumed coverage on shares of Reddit in a research report on Tuesday. They issued an “equal weight” rating and a $149.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, Reddit has an average rating of “Moderate Buy” and a consensus target price of $238.46.

Insider Activity

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the company’s stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $232.78, for a total transaction of $4,190,040.00. Following the transaction, the chief executive officer owned 448,576 shares of the company’s stock, valued at approximately $104,419,521.28. This represents a 3.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, COO Jennifer L. Wong sold 33,507 shares of the company’s stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $143.41, for a total transaction of $4,805,238.87. Following the transaction, the chief operating officer directly owned 1,088,451 shares in the company, valued at $156,094,757.91. The trade was a 2.99% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders acquired 61,000 shares of company stock worth $8,870,815 and sold 304,235 shares worth $50,569,685. Company insiders own 34.25% of the company’s stock.

Hedge Funds Weigh In On Reddit

Institutional investors and hedge funds have recently modified their holdings of the company. Raiffeisen Bank International AG purchased a new position in Reddit during the third quarter worth approximately $25,000. GW&K Investment Management LLC purchased a new position in Reddit during the third quarter worth approximately $30,000. Cornerstone Planning Group LLC raised its stake in Reddit by 13,500.0% during the third quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock worth $31,000 after purchasing an additional 135 shares during the period. LOM Asset Management Ltd purchased a new position in Reddit during the fourth quarter worth approximately $33,000. Finally, Noble Wealth Management PBC purchased a new position in Reddit during the fourth quarter worth approximately $34,000.

Reddit Stock Down 6.2%

The company has a market cap of $25.98 billion, a PE ratio of 52.01, a P/E/G ratio of 0.99 and a beta of 2.40. The stock’s 50 day simple moving average is $143.44 and its two-hundred day simple moving average is $191.51.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, topping analysts’ consensus estimates of $0.96 by $0.28. The company 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%. Reddit’s revenue was up 69.7% on a year-over-year basis. During the same quarter last year, the firm posted $0.36 earnings per share. Analysts forecast that Reddit Inc. will post 1.12 EPS for the current year.

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.