Reddit (NYSE:RDDT) Rating Lowered to “Hold” at Zacks Research

Reddit (NYSE:RDDT) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a report released on Tuesday,Zacks.com reports.

RDDT has been the topic of several other reports. Jefferies Financial Group set a $250.00 price target on shares of Reddit in a report on Friday, July 10th. Telsey Advisory Group set a $240.00 price objective on Reddit in a report on Friday, July 31st. Sanford C. Bernstein restated a “market perform” rating and issued a $180.00 target price on shares of Reddit in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft set a $200.00 target price on Reddit in a report on Friday, July 31st. Finally, UBS Group reiterated a “buy” rating on shares of Reddit in a research report on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $221.10.

Reddit Price Performance

RDDT stock opened at $155.34 on Tuesday. The firm’s fifty day simple moving average is $172.64 and its 200-day simple moving average is $158.33. The company has a market capitalization of $29.89 billion, a P/E ratio of 36.13, a price-to-earnings-growth ratio of 0.54 and a beta of 2.03. Reddit has a 12 month low of $119.27 and a 12 month high of $282.95.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, topping analysts’ consensus estimates of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The firm had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. During the same quarter in the prior year, the business earned $0.45 earnings per share. The business’s quarterly revenue was up 61.0% compared to the same quarter last year. As a group, sell-side analysts forecast that Reddit will post 5.27 earnings per share for the current year.

Insider Buying and Selling

In other Reddit news, CAO Michelle Marie Reynolds sold 808 shares of the stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $200.00, for a total transaction of $161,600.00. Following the transaction, the chief accounting officer directly owned 15,060 shares of the company’s stock, valued at $3,012,000. This trade represents a 5.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $178.16, for a total transaction of $3,206,880.00. Following the transaction, the chief executive officer directly owned 373,814 shares in the company, valued at approximately $66,598,702.24. The trade was a 4.59% 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. In the last quarter, insiders sold 204,974 shares of company stock valued at $36,025,162. 28.48% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of RDDT. Evansbrook LLC grew its holdings in shares of Reddit by 2.2% during the 1st quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock worth $368,000 after purchasing an additional 59 shares during the period. Signaturefd LLC boosted its stake in Reddit by 7.6% during the second quarter. Signaturefd LLC now owns 878 shares of the company’s stock worth $152,000 after buying an additional 62 shares during the period. EverSource Wealth Advisors LLC boosted its stake in Reddit by 48.1% during the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after buying an additional 64 shares during the period. Florida Financial Advisors LLC increased its position in shares of Reddit by 6.7% during the fourth quarter. Florida Financial Advisors LLC now owns 1,087 shares of the company’s stock valued at $250,000 after acquiring an additional 68 shares during the last quarter. Finally, Diversified Trust Co increased its position in shares of Reddit by 2.1% during the first quarter. Diversified Trust Co now owns 3,271 shares of the company’s stock valued at $440,000 after acquiring an additional 68 shares during 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.