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

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

RDDT has been the topic of a number of other research reports. Needham & Company LLC reissued a “buy” rating and issued a $300.00 target price on shares of Reddit in a research report on Wednesday, June 24th. Cantor Fitzgerald lowered their price target on Reddit from $200.00 to $170.00 and set a “neutral” rating for the company in a research report on Friday, July 31st. Wall Street Zen cut Reddit from a “buy” rating to a “hold” rating in a research note on Sunday, August 9th. UBS Group reiterated a “buy” rating on shares of Reddit in a report on Friday, July 31st. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Reddit in a research note on Wednesday, August 5th. Two analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat, Reddit presently has a consensus rating of “Moderate Buy” and an average price target of $221.10.

Reddit Price Performance

Shares of RDDT stock opened at $155.34 on Tuesday. Reddit has a 1-year low of $119.27 and a 1-year high of $282.95. The firm has a market cap of $29.89 billion, a PE ratio of 36.13, a price-to-earnings-growth ratio of 0.54 and a beta of 2.03. The company has a 50-day moving average of $172.64 and a two-hundred day moving average of $158.33.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, beating 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 business had revenue of $804.91 million for the quarter, compared to the consensus estimate of $731.00 million. During the same period in the previous year, the firm earned $0.45 EPS. The business’s revenue was up 61.0% on a year-over-year basis. Sell-side analysts anticipate that Reddit will post 5.27 EPS for the current fiscal year.

Insider Buying and Selling at Reddit

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the business’s stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $173.13, for a total value of $3,116,340.00. Following the completion of the transaction, the chief executive officer owned 373,814 shares in the company, valued at $64,718,417.82. The trade was a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a legal 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, COO Jennifer L. Wong sold 75,000 shares of the company’s stock in a transaction 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 sale, the chief operating officer directly owned 1,050,339 shares in the company, valued at $187,538,028.45. This represents a 6.66% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 204,974 shares of company stock valued at $36,025,162 in the last 90 days. Company insiders own 28.48% of the company’s stock.

Institutional Investors Weigh In On Reddit

Large investors have recently bought and sold shares of the stock. Sunbelt Securities Inc. increased its stake in shares of Reddit by 87.5% during the first 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. Ascentis Independent Advisors purchased a new position in Reddit in the first quarter worth approximately $30,000. EverSource Wealth Advisors LLC grew its holdings in Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after acquiring an additional 64 shares in the last quarter. Beacon Investment Advisory Services Inc. acquired a new position in Reddit during the 2nd quarter worth approximately $35,000. Finally, Geneos Wealth Management Inc. increased its position in shares of 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 during the last quarter.

Reddit Company Profile

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.