Reddit (NYSE:RDDT) Earns Buy Rating from Needham & Company LLC

Reddit (NYSE:RDDT)‘s stock had its “buy” rating reiterated by research analysts at Needham & Company LLC in a research note issued to investors on Friday, Benzinga reports. They presently have a $300.00 price target on the stock. Needham & Company LLC’s target price would suggest a potential upside of 87.03% from the stock’s previous close.

Several other research analysts have also commented on RDDT. Piper Sandler reaffirmed an “overweight” rating and set a $195.00 price objective (down from $215.00) on shares of Reddit in a research note on Friday, July 31st. Sanford C. Bernstein reissued a “market perform” rating and issued a $180.00 price objective on shares of Reddit in a research report on Friday, July 31st. Telsey Advisory Group set a $240.00 target price on Reddit in a research 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. Finally, B. Riley Financial boosted their price objective on Reddit from $250.00 to $270.00 and gave the company a “buy” rating in a report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and ten have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $219.29.

Reddit Stock Up 2.5%

NYSE:RDDT traded up $3.94 on Friday, hitting $160.41. The stock had a trading volume of 524,950 shares, compared to its average volume of 5,374,225. Reddit has a 52-week low of $119.27 and a 52-week high of $263.50. The stock has a market cap of $30.86 billion, a price-to-earnings ratio of 37.60, a price-to-earnings-growth ratio of 0.71 and a beta of 2.05. The business’s 50-day simple moving average is $153.93 and its two-hundred day simple moving average is $160.61.

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

Insider Activity

In other news, COO Jennifer Wong sold 75,000 shares of the firm’s stock in a transaction dated Friday, August 14th. The shares were 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 directly owned 1,050,339 shares of the company’s stock, valued at approximately $187,538,028.45. This trade represents a 6.66% decrease in their position. The transaction 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, CEO Steve Huffman sold 18,000 shares of Reddit stock in a transaction dated 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 of the company’s stock, valued at $66,598,702.24. This represents a 4.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 228,744 shares of company stock worth $37,976,994. 28.48% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. State Street Corp raised its holdings in shares of Reddit by 8.7% during the second quarter. State Street Corp now owns 2,979,587 shares of the company’s stock valued at $517,197,000 after purchasing an additional 237,523 shares during the period. Wellington Management Group LLP grew its position in shares of Reddit by 21.8% during the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock valued at $271,572,000 after acquiring an additional 280,030 shares during the period. Lord Abbett & CO. LLC increased its stake in shares of Reddit by 30.3% during the 4th quarter. Lord Abbett & CO. LLC now owns 1,263,529 shares of the company’s stock worth $290,447,000 after purchasing an additional 293,743 shares during the last quarter. DSM Capital Partners LLC raised its holdings in shares of Reddit by 5.3% in the 1st quarter. DSM Capital Partners LLC now owns 848,206 shares of the company’s stock worth $114,211,000 after purchasing an additional 42,808 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Reddit by 8.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 481,893 shares of the company’s stock valued at $83,647,000 after purchasing an additional 39,540 shares during the last quarter.

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.