Reddit’s (RDDT) Buy Rating Reaffirmed at Needham & Company LLC

Reddit (NYSE:RDDT)‘s stock had its “buy” rating reiterated by research analysts at Needham & Company LLC in a note issued to investors on Friday, Benzinga reports. They presently have a $300.00 price target on the stock. Needham & Company LLC’s price target suggests a potential upside of 88.41% from the stock’s previous close.

Several other equities analysts have also issued reports on the company. Citigroup restated a “market outperform” rating on shares of Reddit in a research report on Monday, August 24th. Morgan Stanley cut their price objective on Reddit from $240.00 to $210.00 and set an “overweight” rating on the stock in a research report on Friday, August 21st. Telsey Advisory Group set a $240.00 target price on Reddit in a research note on Friday, July 31st. Cantor Fitzgerald lowered their target price on Reddit from $200.00 to $170.00 and set a “neutral” rating for the company in a research note on Friday, July 31st. Finally, Wall Street Zen cut Reddit from a “buy” rating to a “hold” rating in a research note on Sunday, August 9th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Reddit currently has a consensus rating of “Moderate Buy” and an average price target of $219.29.

Reddit Price Performance

Shares of NYSE:RDDT traded down $0.71 on Friday, hitting $159.23. The company’s stock had a trading volume of 1,495,251 shares, compared to its average volume of 5,376,866. The company has a 50-day simple moving average of $154.40 and a 200 day simple moving average of $160.90. Reddit has a 1 year low of $119.27 and a 1 year high of $263.50. The company has a market capitalization of $30.63 billion, a PE ratio of 36.96, a PEG ratio of 0.74 and a beta of 2.05.

Reddit (NYSE:RDDT) last announced its quarterly earnings data on Thursday, July 30th. The company reported $1.25 EPS for the quarter, beating the consensus estimate of $0.95 by $0.30. The firm 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 company’s revenue was up 61.0% on a year-over-year basis. During the same period in the prior year, the company earned $0.45 EPS. On average, equities research analysts expect that Reddit will post 5.27 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Steve Huffman sold 17,308 shares of Reddit stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $144.87, for a total value of $2,507,409.96. Following the completion of the sale, the chief executive officer owned 336,432 shares of the company’s stock, valued at $48,738,903.84. The trade was a 4.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 60,000 shares of Reddit stock in a transaction on Monday, September 14th. The stock was sold at an average price of $162.33, for a total value of $9,739,800.00. Following the completion of the sale, the chief operating officer directly owned 1,012,226 shares of the company’s stock, valued at $164,314,646.58. The trade was a 5.60% 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 sold 228,744 shares of company stock valued at $37,976,994 over the last 90 days. Company insiders own 28.48% of the company’s stock.

Institutional Trading of Reddit

Several large investors have recently modified their holdings of RDDT. Mirador Capital Partners LP grew its holdings in Reddit by 4.5% during the third quarter. Mirador Capital Partners LP now owns 10,765 shares of the company’s stock valued at $1,533,000 after purchasing an additional 459 shares during the period. Vilga Financial Planning LLC bought a new stake in Reddit during the third quarter valued at about $767,000. GAMMA Investing LLC grew its holdings in Reddit by 298.2% during the third quarter. GAMMA Investing LLC now owns 2,007 shares of the company’s stock valued at $286,000 after purchasing an additional 1,503 shares during the period. Elevation Wealth Partners LLC grew its holdings in Reddit by 5,022.2% during the third quarter. Elevation Wealth Partners LLC now owns 461 shares of the company’s stock valued at $66,000 after purchasing an additional 452 shares during the period. Finally, Family Legacy Financial Solutions LLC grew its holdings in Reddit by 48.3% during the third quarter. Family Legacy Financial Solutions LLC now owns 3,070 shares of the company’s stock valued at $437,000 after purchasing an additional 1,000 shares during the period.

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and experiences. Registered users can submit posts, images, videos and links, while other users can comment, vote on content and engage in discussions. The platform comprises thousands of independently moderated communities, commonly known as subreddits.

Reddit generates revenue primarily through digital advertising and other commercial offerings for businesses.