Reddit Inc. (NYSE:RDDT) Receives $220.90 Average Price Target from Brokerages

Reddit Inc. (NYSE:RDDT) has earned an average recommendation of “Moderate Buy” from the thirty-one brokerages that are currently covering the company, MarketBeat Ratings reports. Ten research analysts have rated the stock with a hold rating, eighteen have issued a buy rating and three have assigned a strong buy rating to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $221.7097.

A number of brokerages have commented on RDDT. Oppenheimer dropped their target price on shares of Reddit from $225.00 to $200.00 and set an “outperform” rating on the stock in a research note on Friday, July 31st. Guggenheim reaffirmed a “buy” rating on shares of Reddit in a research note on Friday, July 31st. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $180.00 price target on shares of Reddit in a research note on Friday, July 31st. Wedbush lowered their price target on Reddit from $250.00 to $221.00 and set an “outperform” rating for the company in a report on Friday, July 31st. Finally, Citizens Jmp dropped their price objective on Reddit from $250.00 to $240.00 and set a “market outperform” rating on the stock in a research note on Friday, May 1st.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s inclusion in the S&P 500 should improve its visibility and may create ongoing demand from index-tracking funds. Analysts remain broadly constructive, with reported average price targets above recent trading levels. Reddit Stock Falls Ahead of Joining the S&P 500
• Positive Sentiment: Reddit’s advertising business continues to be viewed as a major growth driver. Rapid ad growth and an expanding advertiser base could give the company an advantage over Meta Platforms, although RDDT carries a richer valuation. RDDT vs. META: Which Digital Advertising Stock Has an Edge Right Now?
• Neutral Sentiment: Recent commentary cautions that the S&P 500 “index effect” may be less powerful than expected because much of the buying could have occurred before the effective inclusion date. The event may therefore support visibility without producing a sustained rally. Reddit: Curb Your Enthusiasm About The Index Effect
• Neutral Sentiment: Reddit recently delivered strong quarterly results, including revenue growth of 61% year over year and earnings above consensus estimates. However, investors are now focused more on whether that growth can continue amid market concerns. RDDT Stock Dips Premarket As S&P 500 Inclusion Boost Wanes
• Negative Sentiment: Search-traffic risks are weighing on the outlook. Any decline in visits originating from search engines could reduce user growth, engagement and the inventory available for advertising. Search Traffic Risks for Reddit
• Negative Sentiment: CEO Steve Huffman sold 18,000 shares and COO Jennifer Wong sold 75,000 shares in transactions conducted under pre-arranged Rule 10b5-1 plans. The planned sales reduce their significance, but insider selling can still pressure investor sentiment. SEC filing for Jennifer Wong share sale SEC filing for Steve Huffman share sale

Reddit Trading Down 4.1%

Shares of RDDT opened at $151.77 on Thursday. The firm has a market capitalization of $29.20 billion, a P/E ratio of 35.30, a P/E/G ratio of 0.53 and a beta of 2.03. Reddit has a 12-month low of $119.27 and a 12-month high of $282.95. The firm has a fifty day moving average price of $174.35 and a 200-day moving average price of $158.71.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping analysts’ consensus estimates of $0.95 by $0.30. The firm had revenue of $804.91 million for the quarter, compared to analysts’ expectations of $731.00 million. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The business’s revenue for the quarter was up 61.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.45 earnings per share. Analysts predict that Reddit will post 5.22 earnings per share for the current year.

Insider Buying and Selling at Reddit

In other news, CAO Michelle Marie Reynolds sold 808 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total transaction of $161,600.00. Following the transaction, the chief accounting officer owned 15,060 shares of the company’s stock, valued at approximately $3,012,000. This represents a 5.09% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction on Friday, August 14th. The shares were sold at an average price of $178.16, for a total value of $3,206,880.00. Following the transaction, the chief executive officer owned 373,814 shares in the company, valued at approximately $66,598,702.24. This represents a 4.59% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 204,974 shares of company stock valued at $36,025,162 in the last ninety days. Corporate insiders own 28.48% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RDDT. Vanguard Group Inc. lifted its position in shares of Reddit by 8.9% in the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock worth $3,062,339,000 after purchasing an additional 1,083,540 shares during the period. Capital World Investors bought a new position in shares of Reddit during the fourth quarter valued at approximately $1,293,258,000. State Street Corp increased its holdings in Reddit by 6.0% during the fourth quarter. State Street Corp now owns 2,631,332 shares of the company’s stock valued at $604,864,000 after buying an additional 149,401 shares during the period. Geode Capital Management LLC increased 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 valued at $546,789,000 after buying an additional 106,821 shares during the period. Finally, Morgan Stanley raised its stake in Reddit by 11.4% in 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 in the last quarter.

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.