Reddit (NYSE:RDDT) Cut to “Hold” at Wall Street Zen

Wall Street Zen downgraded shares of Reddit (NYSE:RDDT) from a buy rating to a hold rating in a report published on Monday morning.

Other equities research analysts have also recently issued reports about the company. B. Riley Financial raised their price target on Reddit from $245.00 to $250.00 and gave the company a “buy” rating in a report on Friday, February 6th. Zacks Research downgraded Reddit from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 26th. Wells Fargo & Company set a $196.00 price target on Reddit in a report on Monday, February 9th. Cantor Fitzgerald cut their price objective on shares of Reddit from $240.00 to $170.00 and set a “neutral” rating for the company in a report on Friday, February 6th. Finally, UBS Group set a $265.00 price objective on shares of Reddit in a report on Tuesday, January 13th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $242.19.

Reddit Price Performance

Shares of NYSE RDDT opened at $139.61 on Monday. The stock has a market cap of $26.67 billion, a PE ratio of 53.28, a price-to-earnings-growth ratio of 0.99 and a beta of 2.40. Reddit has a 1 year low of $79.75 and a 1 year high of $282.95. The firm has a fifty day moving average price of $159.88 and a 200-day moving average price of $200.15.

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

Insider Transactions at Reddit

In related news, CTO Christopher Brian Slowe sold 9,500 shares of the business’s stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $141.28, for a total value of $1,342,160.00. Following the sale, the chief technology officer directly owned 38,413 shares in the company, valued at approximately $5,426,988.64. The trade was a 19.83% 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 33,507 shares of the stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $143.41, for a total value of $4,805,238.87. Following the transaction, the chief operating officer directly owned 1,088,451 shares of the company’s stock, valued at approximately $156,094,757.91. The trade was a 2.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders purchased 61,000 shares of company stock valued at $8,870,815 and sold 355,078 shares valued at $65,408,023. 34.25% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of RDDT. Raiffeisen Bank International AG purchased a new stake in Reddit during the third quarter valued at $25,000. GW&K Investment Management LLC bought a new position in Reddit during the third quarter valued at $30,000. Cornerstone Planning Group LLC grew its stake in shares of 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 in the last quarter. LOM Asset Management Ltd bought a new stake in shares of Reddit in the 4th quarter worth about $33,000. Finally, Noble Wealth Management PBC bought a new stake in shares of Reddit in the 4th quarter worth about $34,000.

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.