Reddit (NYSE:RDDT) Earns “Buy” Rating from Needham & Company LLC

Reddit (NYSE:RDDT)‘s stock had its “buy” rating reissued by equities research analysts at Needham & Company LLC in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $300.00 target price on the stock. Needham & Company LLC’s price objective points to a potential upside of 81.55% from the company’s current price.

Several other research firms also recently weighed in on RDDT. DA Davidson reissued a “buy” rating and issued a $200.00 price objective on shares of Reddit in a report on Friday, May 1st. Cantor Fitzgerald lifted their target price on shares of Reddit from $170.00 to $180.00 and gave the company a “neutral” rating in a report on Friday, May 1st. Truist Financial set a $265.00 price target on shares of Reddit in a research report on Friday, May 1st. Rothschild & Co Redburn set a $110.00 price target on shares of Reddit in a research note on Monday, April 27th. Finally, Zacks Research downgraded shares of Reddit from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, June 3rd. Eighteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $230.75.

Reddit Stock Performance

RDDT opened at $165.24 on Wednesday. Reddit has a one year low of $119.27 and a one year high of $282.95. The stock has a market capitalization of $31.81 billion, a P/E ratio of 47.21 and a beta of 1.91. The business’s 50-day simple moving average is $162.05 and its 200-day simple moving average is $174.58.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.62 by $0.39. The firm had revenue of $663.41 million for the quarter, compared to the consensus estimate of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The firm’s quarterly revenue was up 69.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.13 EPS. On average, equities research analysts forecast that Reddit will post 4.83 EPS for the current fiscal year.

Insider Activity

In related news, CTO Christopher Brian Slowe sold 15,500 shares of Reddit stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $150.67, for a total value of $2,335,385.00. Following the transaction, the chief technology officer directly owned 38,413 shares in the company, valued at $5,787,686.71. This trade represents a 28.75% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the business’s stock in a transaction on Tuesday, March 31st. The shares were sold at an average price of $132.77, for a total transaction of $2,389,860.00. Following the completion of the transaction, the chief executive officer directly owned 411,195 shares in the company, valued at $54,594,360.15. This represents a 4.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 241,000 shares of company stock valued at $39,303,645. Company insiders own 28.48% of the company’s stock.

Hedge Funds Weigh In On Reddit

A number of large investors have recently bought and sold shares of the company. NewEdge Advisors LLC increased its stake in shares of Reddit by 143.3% during the first quarter. NewEdge Advisors LLC now owns 7,982 shares of the company’s stock worth $837,000 after acquiring an additional 4,701 shares during the period. Empowered Funds LLC purchased a new position in Reddit during the first quarter worth about $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Reddit by 106.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company’s stock valued at $22,759,000 after purchasing an additional 111,780 shares during the period. Focus Partners Wealth lifted its position in Reddit by 40.8% in the first quarter. Focus Partners Wealth now owns 10,224 shares of the company’s stock valued at $1,073,000 after purchasing an additional 2,965 shares during the period. Finally, Geneos Wealth Management Inc. boosted its holdings in Reddit by 344.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock valued at $39,000 after purchasing an additional 286 shares in the last quarter.

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.