Reddit (NYSE:RDDT) Research Coverage Started at BNP Paribas Exane

BNP Paribas Exane initiated coverage on shares of Reddit (NYSE:RDDT) in a research note published on Friday morning, Marketbeat Ratings reports. The firm issued a neutral rating and a $180.00 target price on the stock.

A number of other research analysts have also commented on RDDT. UBS Group reaffirmed a “buy” rating on shares of Reddit in a report on Friday, July 31st. Zacks Research downgraded Reddit from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 25th. Cantor Fitzgerald reduced their target price on shares of Reddit from $200.00 to $170.00 and set a “neutral” rating for the company in a research report on Friday, July 31st. B. Riley Financial upped their price target on shares of Reddit from $250.00 to $270.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Finally, Raymond James Financial restated a “strong-buy” rating and issued a $205.00 price target on shares of Reddit in a research note on Monday, August 17th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $219.29.

Reddit Stock Down 0.0%

Shares of NYSE:RDDT opened at $150.84 on Friday. Reddit has a 12-month low of $119.27 and a 12-month high of $271.99. The business has a 50 day moving average of $163.00 and a 200-day moving average of $159.54. The stock has a market cap of $29.02 billion, a PE ratio of 35.08, a P/E/G ratio of 0.70 and a beta of 2.02.

Reddit (NYSE:RDDT) last announced its earnings results 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. The company had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%.The firm’s quarterly revenue was up 61.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.45 earnings per share. Equities research analysts expect that Reddit will post 5.27 earnings per share for the current year.

Insider Activity

In other news, COO Jennifer L. Wong sold 75,000 shares of the business’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $178.55, for a total transaction 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. The trade was a 6.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Reynolds sold 808 shares of the business’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value 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 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 have sold 230,244 shares of company stock valued at $38,747,524 in the last three months. Company insiders own 28.48% of the company’s stock.

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 stake in shares of Reddit by 2.2% during the first quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock worth $368,000 after buying an additional 59 shares during the last quarter. Signaturefd LLC lifted its stake in shares of Reddit by 7.6% in the 2nd quarter. Signaturefd LLC now owns 878 shares of the company’s stock valued at $152,000 after acquiring an additional 62 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Reddit by 48.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after acquiring an additional 64 shares during the last quarter. Florida Financial Advisors LLC boosted its holdings in shares of Reddit by 6.7% during the 4th 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 in the last quarter. Finally, Diversified Trust Co boosted its holdings in shares of Reddit by 2.1% during the 1st quarter. Diversified Trust Co now owns 3,271 shares of the company’s stock valued at $440,000 after acquiring an additional 68 shares in the last quarter.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: A Yahoo Finance analysis argues that RDDT could be approximately 51% undervalued following its recent decline, supporting the view that the stock’s long-term growth potential is not fully reflected in its current valuation. Reddit could be 51% undervalued
• Positive Sentiment: Guggenheim maintained a Buy rating on Reddit, adding support to the bullish case. The broader analyst consensus remains Moderate Buy, with an average target price of $221.10. Guggenheim remains a Buy on Reddit
• Neutral Sentiment: BNP Paribas Exane initiated coverage with a Neutral rating and a $180 price target. The target implies meaningful upside from the referenced share price, but the neutral rating reflects caution about Reddit’s outlook and valuation. BNP Paribas Exane coverage
• Neutral Sentiment: Analyst opinions remain divided, with some firms emphasizing Reddit’s strong growth and others taking a more cautious stance. This disagreement can increase volatility and limit near-term investor conviction. Mixed analyst opinions on Reddit
• Negative Sentiment: Reddit insiders sold shares in several recent transactions. COO Jennifer Wong sold 60,000 shares for about $9.7 million, while CEO Steve Huffman sold 17,308 shares for approximately $2.8 million. Both sales were made under pre-arranged Rule 10b5-1 plans and the executives retained sizable holdings, but the transactions may still weigh on sentiment. Reddit insider sales

Reddit Company Profile

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and discussions. Users can submit posts, links, images and videos, while community members can comment, vote and interact through publicly accessible forums known as subreddits.

The company generates revenue primarily through digital advertising and also offers premium memberships and other paid products. Reddit additionally provides data licensing and developer-related services that support the use of its platform content and technology.

Founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz, Reddit serves users worldwide across a broad range of communities.