Reddit (NYSE:RDDT) Cut to Hold at Roth Capital

Reddit (NYSE:RDDT) was downgraded by research analysts at Roth Capital from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Other analysts also recently issued research reports about the stock. Sanford C. Bernstein lifted their target price on shares of Reddit from $65.00 to $85.00 and gave the company an “underperform” rating in a report on Wednesday, October 30th. The Goldman Sachs Group lifted their target price on shares of Reddit from $105.00 to $176.00 and gave the company a “neutral” rating in a report on Tuesday, January 14th. Wells Fargo & Company began coverage on shares of Reddit in a report on Wednesday, December 11th. They issued an “overweight” rating and a $206.00 target price on the stock. Morgan Stanley raised shares of Reddit from an “equal weight” rating to an “overweight” rating and lifted their target price for the company from $70.00 to $200.00 in a report on Monday, December 9th. Finally, Robert W. Baird lifted their target price on shares of Reddit from $100.00 to $160.00 and gave the company a “neutral” rating in a report on Wednesday, December 11th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, Reddit presently has a consensus rating of “Moderate Buy” and a consensus price target of $158.20.

Reddit Price Performance

Shares of Reddit stock opened at $181.55 on Wednesday. Reddit has a 1 year low of $37.35 and a 1 year high of $191.00. The company’s fifty day moving average is $161.24 and its two-hundred day moving average is $102.91.

Reddit (NYSE:RDDT) last issued its quarterly earnings data on Tuesday, October 29th. The company reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.23. The company had revenue of $348.40 million for the quarter, compared to the consensus estimate of $313.61 million. Reddit had a negative net margin of 47.83% and a negative return on equity of 40.54%. Reddit’s revenue was up 67.9% compared to the same quarter last year. On average, sell-side analysts anticipate that Reddit will post -3.48 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Steve Ladd Huffman sold 14,000 shares of the business’s stock in a transaction that occurred on Friday, November 1st. The shares were sold at an average price of $113.13, for a total value of $1,583,820.00. Following the completion of the transaction, the chief executive officer now owns 651,775 shares of the company’s stock, valued at $73,735,305.75. The trade was a 2.10 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, COO Jennifer L. Wong sold 33,334 shares of the business’s stock in a transaction that occurred on Thursday, January 16th. The shares were sold at an average price of $173.93, for a total transaction of $5,797,782.62. Following the completion of the transaction, the chief operating officer now directly owns 1,504,297 shares of the company’s stock, valued at approximately $261,642,377.21. This represents a 2.17 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 259,357 shares of company stock worth $39,528,738.

Hedge Funds Weigh In On Reddit

A number of institutional investors have recently modified their holdings of the company. Hsbc Holdings PLC purchased a new stake in Reddit in the second quarter valued at approximately $203,000. Marshall Wace LLP grew its holdings in Reddit by 117.2% in the second quarter. Marshall Wace LLP now owns 847,929 shares of the company’s stock valued at $54,174,000 after purchasing an additional 457,588 shares during the period. Maverick Capital Ltd. grew its holdings in Reddit by 147.4% in the second quarter. Maverick Capital Ltd. now owns 742,145 shares of the company’s stock valued at $47,416,000 after purchasing an additional 442,145 shares during the period. Scientech Research LLC grew its holdings in Reddit by 120.0% in the second quarter. Scientech Research LLC now owns 19,432 shares of the company’s stock valued at $1,242,000 after purchasing an additional 10,601 shares during the period. Finally, Truist Financial Corp purchased a new stake in Reddit in the second quarter valued at approximately $266,000.

Reddit Company Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.