Reddit (NYSE:RDDT) Rating Lowered to “Hold” at Roth Capital

Roth Capital lowered shares of Reddit (NYSE:RDDT) from a strong-buy rating to a hold rating in a research note issued to investors on Wednesday morning,Zacks.com reports. Roth Capital also issued estimates for Reddit’s Q4 2024 earnings at $0.31 EPS, FY2024 earnings at ($3.48) EPS, Q1 2025 earnings at ($0.02) EPS, Q2 2025 earnings at $0.08 EPS, Q3 2025 earnings at $0.29 EPS, Q4 2025 earnings at $0.57 EPS, FY2025 earnings at $0.94 EPS and FY2026 earnings at $2.22 EPS.

A number of other equities analysts have also commented on RDDT. Morgan Stanley raised Reddit from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $70.00 to $200.00 in a report on Monday, December 9th. Jefferies Financial Group raised their price target on Reddit from $120.00 to $175.00 and gave the stock a “buy” rating in a report on Monday, November 25th. Sanford C. Bernstein raised their price target on Reddit from $65.00 to $85.00 and gave the stock an “underperform” rating in a report on Wednesday, October 30th. Piper Sandler raised their price target on Reddit from $150.00 to $197.00 and gave the stock an “overweight” rating in a report on Tuesday, January 14th. Finally, Needham & Company LLC raised their price target on Reddit from $120.00 to $190.00 and gave the stock a “buy” rating in a report on Wednesday, December 11th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating, twelve have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, Reddit currently has a consensus rating of “Moderate Buy” and an average target price of $158.20.

Reddit Price Performance

NYSE:RDDT opened at $182.24 on Wednesday. The business has a fifty day simple moving average of $162.23 and a two-hundred day simple moving average of $103.46. Reddit has a 1 year low of $37.35 and a 1 year high of $191.00.

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

Insiders Place Their Bets

In other news, CEO Steve Ladd Huffman sold 14,000 shares of Reddit stock in a transaction dated Friday, November 1st. The stock was sold at an average price of $113.13, for a total value of $1,583,820.00. Following the transaction, the chief executive officer now owns 651,775 shares in the company, valued at approximately $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 Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Andrew Vollero sold 19,838 shares of Reddit stock in a transaction dated Monday, November 25th. The stock was sold at an average price of $143.22, for a total value of $2,841,198.36. Following the completion of the transaction, the chief financial officer now owns 703,615 shares in the company, valued at approximately $100,771,740.30. This represents a 2.74 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 264,357 shares of company stock valued at $40,449,488 over the last 90 days.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of RDDT. Hsbc Holdings PLC purchased a new position in shares of Reddit in the second quarter worth about $203,000. Marshall Wace LLP increased its holdings in Reddit by 117.2% during the 2nd 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. increased its holdings in Reddit by 147.4% during the 2nd 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 increased its holdings in Reddit by 120.0% during the 2nd 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 position in Reddit during the 2nd quarter valued at about $266,000.

About Reddit

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.