Guggenheim Issues Pessimistic Forecast for Reddit (NYSE:RDDT) Stock Price

Reddit (NYSE:RDDT) had its price target reduced by research analysts at Guggenheim from $170.00 to $140.00 in a research report issued on Tuesday, Benzinga reports. The brokerage presently has a “buy” rating on the stock. Guggenheim‘s price objective indicates a potential upside of 38.46% from the stock’s current price.

RDDT has been the topic of several other research reports. Morgan Stanley cut their price target on Reddit from $240.00 to $210.00 and set an “overweight” rating on the stock in a research report on Friday, August 21st. Truist Financial decreased their price objective on Reddit from $275.00 to $210.00 and set a “buy” rating for the company in a report on Friday, October 30th. Jefferies Financial Group decreased their price objective on Reddit from $200.00 to $155.00 in a report on Friday, October 30th. Telsey Advisory Group set a $240.00 target price on shares of Reddit in a research report on Friday, July 31st. Finally, Piper Sandler cut their target price on shares of Reddit from $195.00 to $145.00 in a report on Friday, October 30th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and fifteen have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Reddit currently has an average rating of “Moderate Buy” and a consensus price target of $180.00.

Reddit Stock Performance

RDDT opened at $101.11 on Tuesday. The business’s 50-day simple moving average is $143.34 and its 200-day simple moving average is $156.12. Reddit has a one year low of $89.28 and a one year high of $263.50. The stock has a market capitalization of $19.45 billion, a P/E ratio of 20.79, a price-to-earnings-growth ratio of 0.41 and a beta of 2.28.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, October 29th. The company reported $1.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.33 by $0.07. The firm had revenue of $894.96 million during the quarter, compared to analysts’ expectations of $874.91 million. Reddit had a return on equity of 30.57% and a net margin of 32.10%. The business’s revenue was up 53.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.80 EPS. On average, equities research analysts forecast that Reddit will post 5.42 EPS for the current fiscal year.

Insider Buying and Selling

In other Reddit news, Director Robert Sauerberg sold 5,128 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total transaction of $820,069.76. Following the completion of the sale, the director directly owned 27,087 shares of the company’s stock, valued at approximately $4,331,753.04. This trade represents a 15.92% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Steve Huffman sold 17,308 shares of Reddit stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $158.57, for a total value of $2,744,529.56. Following the completion of the transaction, the chief executive officer owned 336,432 shares in the company, valued at $53,348,022.24. This trade represents a 4.89% 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. Insiders sold 291,052 shares of company stock valued at $47,166,483 in the last quarter. 28.48% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Reddit

Several hedge funds have recently modified their holdings of RDDT. State Street Corp grew its position in Reddit by 8.7% in the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company’s stock valued at $517,197,000 after buying an additional 237,523 shares during the last quarter. Wellington Management Group LLP increased its stake in Reddit by 21.8% in the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock valued at $271,572,000 after buying an additional 280,030 shares during the period. Robeco Institutional Asset Management B.V. increased its stake in Reddit by 74.6% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock valued at $115,243,000 after buying an additional 345,735 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Reddit by 8.9% in the 2nd 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 buying an additional 39,540 shares during the period. Finally, Bessemer Group Inc. raised its position in Reddit by 2.4% during the 1st quarter. Bessemer Group Inc. now owns 469,907 shares of the company’s stock worth $63,273,000 after buying an additional 10,996 shares during the last quarter.

About Reddit

Reddit, Inc operates Reddit, an online platform where users share posts, discuss topics and participate in communities known as subreddits. Members can submit text, images, videos and links, comment on posts, and vote on content, helping shape what appears in each community.

The company generates revenue primarily through advertising and also offers paid subscriptions and other products. Reddit serves users and advertisers around the world through its website and mobile applications.

Reddit was founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz.