Reddit (NYSE:RDDT) Stock Gets Price Target Cut from Citigroup

Reddit (NYSE:RDDT) had its price objective lowered by analysts at Citigroup from $245.00 to $186.00 in a note issued to investors on Friday, Benzinga reports. The brokerage presently has a “buy” rating on the stock. Citigroup‘s price target would indicate a potential upside of 102.75% from the stock’s previous close.

Several other research firms have also recently issued reports on RDDT. Robert W. Baird set a $185.00 price target on shares of Reddit in a report on Friday, July 31st. Wells Fargo & Company reduced their price target on Reddit from $142.00 to $110.00 and set an “equal weight” rating for the company in a report on Friday. Telsey Advisory Group set a $240.00 price objective on Reddit in a report on Friday, July 31st. Deutsche Bank Aktiengesellschaft set a $200.00 target price on Reddit in a report on Friday, July 31st. Finally, Citizens Jmp lowered shares of Reddit from a “market outperform” rating to a “market perform” rating in a research report on Friday. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $197.61.

Reddit Stock Performance

RDDT traded down $37.86 during trading on Friday, hitting $91.74. The stock had a trading volume of 33,241,459 shares, compared to its average volume of 5,525,934. The firm has a market capitalization of $17.65 billion, a P/E ratio of 21.33, a PEG ratio of 0.62 and a beta of 2.05. The company’s 50-day moving average price is $151.54 and its 200 day moving average price is $161.02. Reddit has a twelve month low of $89.28 and a twelve month high of $263.50.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, October 29th. The company reported $1.40 EPS for the quarter, topping the consensus estimate of $1.33 by $0.07. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The company had revenue of $894.96 million during the quarter, compared to analysts’ expectations of $874.91 million. During the same quarter last year, the business earned $0.80 EPS. The business’s revenue was up 53.0% on a year-over-year basis. As a group, equities analysts expect that Reddit will post 5.28 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Reddit news, 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 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 ownership of the stock. The transaction was disclosed in a document filed 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 A. Sauerberg sold 5,128 shares of the company’s stock in a transaction 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 sale, the director directly owned 27,087 shares in the company, valued at $4,331,753.04. This trade represents a 15.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 306,052 shares of company stock valued at $49,754,523. 28.48% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Evansbrook LLC increased its holdings in Reddit by 2.2% during the 1st quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock valued at $368,000 after acquiring an additional 59 shares in the last quarter. Signaturefd LLC raised its position in Reddit by 7.6% during the second quarter. Signaturefd LLC now owns 878 shares of the company’s stock worth $152,000 after acquiring an additional 62 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in Reddit by 48.1% during the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after acquiring an additional 64 shares during the last quarter. Versant Capital Management Inc lifted its holdings in shares of Reddit by 31.1% in the second quarter. Versant Capital Management Inc now owns 291 shares of the company’s stock valued at $51,000 after purchasing an additional 69 shares in the last quarter. Finally, Central Pacific Bank Trust Division lifted its holdings in shares of Reddit by 8.6% in the third quarter. Central Pacific Bank Trust Division now owns 885 shares of the company’s stock valued at $126,000 after purchasing an additional 70 shares in the last quarter.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported third-quarter adjusted earnings of $1.40 per share versus the $1.33 consensus estimate, while revenue reached approximately $895 million, up 53% year over year and above expectations. Advertising revenue increased 54%, highlighting continued monetization momentum. Reddit stock plunges after weak outlook
• Positive Sentiment: Analysts maintained constructive long-term views despite lowering their forecasts. Truist, Wedbush and B. Riley retained buy or outperform ratings, with price targets still materially above recent trading levels. Reddit analysts lower forecasts

Reddit Company Profile

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.