Roth Capital Downgrades Reddit (NYSE:RDDT) to Hold

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

RDDT has been the subject of several other research reports. Raymond James increased their price target on shares of Reddit from $150.00 to $200.00 and gave the company a “strong-buy” rating in a research note on Tuesday. Citigroup increased their price objective on shares of Reddit from $120.00 to $200.00 and gave the stock a “buy” rating in a research report on Friday, December 20th. Bank of America increased their price objective on shares of Reddit from $99.00 to $180.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 8th. Morgan Stanley raised shares of Reddit from an “equal weight” rating to an “overweight” rating and increased their price objective for the stock from $70.00 to $200.00 in a research report on Monday, December 9th. Finally, JMP Securities increased their price objective on shares of Reddit from $118.00 to $160.00 and gave the stock a “market outperform” rating in a research report on Monday, November 25th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, Reddit has a consensus rating of “Moderate Buy” and a consensus price target of $158.20.

Reddit Price Performance

Reddit stock opened at $181.55 on Wednesday. The firm has a 50 day simple moving average of $161.24 and a 200-day simple moving average of $102.91. Reddit has a 1-year low of $37.35 and a 1-year high of $191.00.

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

Insider Activity

In other news, Director Mary Porter Gale sold 5,000 shares of the firm’s stock in a transaction on Friday, November 1st. The shares were sold at an average price of $114.40, for a total value of $572,000.00. Following the sale, the director now directly owns 46,459 shares in the company, valued at approximately $5,314,909.60. This trade represents a 9.72 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Jennifer L. Wong sold 33,334 shares of the firm’s stock in a transaction 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 sale, the chief operating officer now owns 1,504,297 shares in the company, valued at $261,642,377.21. The trade was a 2.17 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 259,357 shares of company stock worth $39,528,738.

Institutional Investors Weigh In On Reddit

Several hedge funds and other institutional investors have recently bought and sold shares of RDDT. FMR LLC raised its stake in Reddit by 302.8% during the 3rd quarter. FMR LLC now owns 12,157,591 shares of the company’s stock worth $801,428,000 after acquiring an additional 9,139,196 shares in the last quarter. VY Capital Management Co. Ltd. acquired a new stake in Reddit during the 3rd quarter worth $474,403,000. Point72 Asset Management L.P. raised its stake in Reddit by 3,172.0% during the 3rd quarter. Point72 Asset Management L.P. now owns 2,296,068 shares of the company’s stock worth $151,357,000 after acquiring an additional 2,225,895 shares in the last quarter. Holocene Advisors LP raised its stake in Reddit by 177.6% during the 3rd quarter. Holocene Advisors LP now owns 3,005,977 shares of the company’s stock worth $198,154,000 after acquiring an additional 1,923,109 shares in the last quarter. Finally, Lord Abbett & CO. LLC raised its stake in Reddit by 1,519.4% during the 3rd quarter. Lord Abbett & CO. LLC now owns 1,650,362 shares of the company’s stock worth $108,792,000 after acquiring an additional 1,548,450 shares in the last quarter.

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.