Reddit (NYSE:RDDT) Stock Moved Down to Hold by Loop Capital

Reddit (NYSE:RDDT) was downgraded by investment analysts at Loop Capital from a “buy” rating to a “hold” rating in a research note issued on Monday, Briefing.com reports. They currently have a $100.00 price objective on the stock. Loop Capital‘s price objective suggests a potential upside of 9.00% from the stock’s current price.

A number of other equities analysts have also weighed in on RDDT. Zacks Research upgraded Reddit from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 27th. Deutsche Bank Aktiengesellschaft set a $200.00 target price on Reddit in a research note on Friday, July 31st. DA Davidson decreased their target price on shares of Reddit from $200.00 to $185.00 and set a “buy” rating on the stock in a research note on Friday, September 18th. Telsey Advisory Group set a $240.00 price target on shares of Reddit in a report on Friday, July 31st. Finally, Oppenheimer downgraded shares of Reddit from an “outperform” rating to a “market perform” rating in a research note on Friday. Two analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and fourteen have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $187.77.

Reddit Trading Up 0.0%

RDDT stock opened at $91.74 on Monday. The firm has a 50 day moving average of $150.37 and a 200-day moving average of $160.26. Reddit has a 12 month low of $89.28 and a 12 month high of $263.50. The firm has a market capitalization of $17.65 billion, a P/E ratio of 18.72, a price-to-earnings-growth ratio of 0.42 and a beta of 2.05.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The business had revenue of $894.96 million for the quarter, compared to analyst estimates of $874.91 million. During the same quarter in the prior year, the firm posted $0.80 EPS. Reddit’s revenue was up 53.0% on a year-over-year basis. Sell-side analysts predict that Reddit will post 5.28 EPS for the current year.

Insiders Place Their Bets

In other news, COO Jennifer Wong sold 75,000 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $178.55, for a total value of $13,391,250.00. Following the completion of the transaction, the chief operating officer owned 1,050,339 shares of the company’s stock, valued at approximately $187,538,028.45. This represents a 6.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total value of $820,069.76. Following the completion of the transaction, the director owned 27,087 shares of the company’s stock, valued at approximately $4,331,753.04. The trade was a 15.92% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 306,052 shares of company stock worth $49,754,523. Company insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

A number of hedge funds have recently modified their holdings of the business. Sunbelt Securities Inc. grew its position in shares of Reddit by 87.5% in the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after buying an additional 91 shares during the period. EverSource Wealth Advisors LLC grew its position in Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after purchasing an additional 64 shares during the last quarter. Beacon Investment Advisory Services Inc. purchased a new position in Reddit in the 2nd quarter worth approximately $35,000. Ascentis Independent Advisors bought a new stake in shares of Reddit in the 1st quarter worth $30,000. Finally, Hager Investment Management Services LLC raised its stake in shares of Reddit by 522.2% in the second quarter. Hager Investment Management Services LLC now owns 280 shares of the company’s stock worth $49,000 after purchasing an additional 235 shares during the last quarter.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Despite weaker U.S. daily active-user trends, Reddit’s revenue increased 53% year over year and advertising revenue per user rose substantially, suggesting strong engagement and advertiser monetization. A post-selloff analysis argued that the market’s reaction may be excessive. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Reddit’s revenue growth has overtaken The Trade Desk’s in a recent comparison, highlighting the company’s continued expansion and improving monetization potential. Reddit vs. The Trade Desk: One’s Revenue Growth Overtook the Other’s Lead
• Neutral Sentiment: RBC Capital reaffirmed its Hold rating, indicating neither a material improvement nor deterioration in its investment view. RBC Capital Reaffirms Their Hold Rating on Reddit
• Negative Sentiment: Investors are concerned that Google’s AI search changes are reducing Reddit’s unpaid search traffic. The company’s move toward a logged-in-only experience could protect monetization but may limit user growth and raise customer-acquisition costs. Reddit Stock Plunges After Google AI Cuts U.S. Traffic
• Negative Sentiment: Several firms reduced expectations: Oppenheimer and Citizens JMP downgraded Reddit to Market Perform, while Citigroup, Cantor Fitzgerald, Truist Financial, B. Riley, Wedbush and Wells Fargo cut their price targets or forecasts. Analyst Rating and Target Changes
• Negative Sentiment: The latest selloff followed quarterly results that beat revenue and earnings estimates but were overshadowed by an unfavorable user outlook, reinforcing concerns about traffic growth and future monetization. Reddit Stock Sinks as Q3 Results Clash With User Outlook

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and activities. Members can submit text posts, links, images and videos, as well as comment on and vote on content. The platform includes thousands of communities, commonly known as subreddits, covering subjects such as news, entertainment, technology, sports, finance and lifestyle.

Reddit generates revenue primarily through digital advertising, offering advertisers access to audiences based on community interests and user engagement.