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

Reddit (NYSE:RDDT)‘s stock had its “buy” rating reissued by Needham & Company LLC in a research report issued on Friday, Benzinga reports. They presently have a $300.00 target price on the stock. Needham & Company LLC’s target price would suggest a potential upside of 87.58% from the company’s previous close.

Other research analysts have also recently issued research reports about the stock. Wells Fargo & Company decreased their target price on shares of Reddit from $187.00 to $142.00 and set an “equal weight” rating on the stock in a research report on Friday, July 31st. Piper Sandler reaffirmed an “overweight” rating and issued a $195.00 target price (down from $215.00) on shares of Reddit in a research report on Friday, July 31st. Cantor Fitzgerald decreased their target price on shares of Reddit from $200.00 to $170.00 and set a “neutral” rating on the stock in a research report on Friday, July 31st. JPMorgan Chase & Co. decreased their target price on shares of Reddit from $200.00 to $185.00 and set a “neutral” rating on the stock in a research report on Friday, July 31st. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Reddit in a research report on Monday, August 24th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $219.29.

Reddit Trading Up 2.2%

RDDT stock traded up $3.46 during midday trading on Friday, hitting $159.93. 5,058,987 shares of the company’s stock were exchanged, compared to its average volume of 5,399,424. The business has a 50-day simple moving average of $153.93 and a two-hundred day simple moving average of $160.61. Reddit has a 1-year low of $119.27 and a 1-year high of $263.50. The stock has a market capitalization of $30.77 billion, a PE ratio of 37.19, a P/E/G ratio of 0.71 and a beta of 2.05.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, July 30th. The company reported $1.25 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 company had revenue of $804.91 million for the quarter, compared to analysts’ expectations of $731.00 million. During the same quarter in the prior year, the company posted $0.45 earnings per share. Reddit’s revenue for the quarter was up 61.0% compared to the same quarter last year. As a group, research analysts expect that Reddit will post 5.27 EPS for the current fiscal year.

Insider Transactions at Reddit

In other news, CEO Steve Huffman sold 17,308 shares of the stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $144.87, for a total transaction of $2,507,409.96. Following the sale, the chief executive officer owned 336,432 shares of the company’s stock, valued at approximately $48,738,903.84. This represents a 4.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer Wong sold 60,000 shares of the stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $162.33, for a total transaction of $9,739,800.00. Following the sale, the chief operating officer directly owned 1,012,226 shares in the company, valued at $164,314,646.58. This represents a 5.60% 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. Over the last quarter, insiders have sold 228,744 shares of company stock valued at $37,976,994. 28.48% of the stock is currently owned by corporate insiders.

Institutional Trading of Reddit

Hedge funds have recently made changes to their positions in the business. Wellington Management Group LLP grew its position in shares of Reddit by 21.8% during the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock worth $271,572,000 after acquiring an additional 280,030 shares during the last quarter. Moore Capital Management LP grew its position in shares of Reddit by 611.4% during the second quarter. Moore Capital Management LP now owns 12,577 shares of the company’s stock worth $2,183,000 after acquiring an additional 10,809 shares during the last quarter. State Street Corp grew its position 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 worth $517,197,000 after acquiring an additional 237,523 shares during the last quarter. PensionDanmark Pensionsforsikringsaktieselskab grew its position in shares of Reddit by 102.3% during the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 19,120 shares of the company’s stock worth $3,319,000 after acquiring an additional 9,670 shares during the last quarter. Finally, IFC Advisors LLC purchased a new position in shares of Reddit during the first quarter worth approximately $2,057,000.

Reddit Company Profile

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.